JackQuisitions
Posts
He Built Instead of Buying...

He Built Instead of Buying...

...and it ended in disappointment

Jack Carr
August 18, 2025

Welcome to the JackQuisitions newsletter,

There are times when building a home service business from scratch is the way to go.
There are times when buying a home service business makes more sense.
The key to success is comparing the two and choosing wisely.

Below, I share the story of Scott Horman, an operator who decided to build—instead of acquiring an existing business—and it didn’t work out as he hoped.

If you’re ready to acquire a home service business, I’ve got the inside track for you. 👇️

The Fastest Way to Make an Acquisition

Want first dibs on HVAC, plumbing, and electrical businesses before anyone else?

Join the Business Modification Group buyer list.

Rather than fight the masses for the best deals, get notified the moment a trades business hits the market.

✅ Be the first to see new deals
✅ Get a complimentary deal review
✅ Access exclusive off-market opportunities

Join the list here — before the next deal drops. It could be the difference between closing a killer deal and coming up short.

Ready For Your Next Acquisition?

Finding your next acquisition target can be just as stressful as the process itself. Let me help. Here are some listings for your review:

This $11.35M revenue HVAC business nets $1.13M—70% commercial, 30% residential, with 80% new construction and 20% service. No refrigeration. Operates on flat-rate pricing with 3,000 active customers, a CRM in place, and QuickBooks for accounting.

This $2.98M revenue HVAC business nets $500K—specializing in commercial and industrial services with 24/7 emergency availability. Established in 1997, it operates with a skilled, unionized workforce providing preventative maintenance, repairs, system servicing, and equipment replacement. Maintains a strong, consistent client base and offers growth potential through expanded service offerings or geographic reach.

This $889K revenue HVAC business nets $172K—98% residential, 2% light commercial, with no new construction and no refrigeration. Established 8 years ago, it boasts 4.9-star Google and 5.0-star Facebook ratings. Operates with a strong base of installation labor contracts that include seasonal tune-ups, generating additional service work.

This $2.3M revenue HVAC business nets $580K—serving over 4,000 customers with 140 active maintenance contracts. Established in 2011, it has grown revenue four years in a row, driven almost entirely by word-of-mouth and referrals. Sale includes the real estate, office building, and nine commercial vehicles, with strong growth opportunities ahead.

A Startup That Never Got Off the Ground

Starting a business in the trades isn’t just about ambition. It’s about survival. It’s about knowing when to move, when to pause, and when to walk away before the ground gives out.

The HVAC industry looks straightforward from the outside.

Steady demand
Recurring revenue
The chance to build something that prints cash

But the wrong partner, a shaky lead flow, and/or the wrong cost structure can sink you in less than a year. That’s exactly what happened to Scott Horman.

From LOI to Walking Away

Scott began like many first-time buyers, searching for a solid business to acquire. He found what looked like the right opportunity—an HVAC company with a loyal customer base, a strong service mix, and no refrigeration headaches. He went under LOI and started moving toward a deal.

But once diligence began, the problems surfaced. The books were messy. The bank wasn’t confident. And then, just as financing doubts grew, the seller raised the price by $100K. At that point, Scott walked away.

Building from Scratch

Instead of leaving the industry entirely, he decided to build from scratch. He partnered with a journeyman technician, put together a launch plan, and set his sights on capturing local market share.

The business opened with a clear strategy: targeting home buyers, sellers, and home warranty companies. Early results were promising. Jobs came in, the phone rang, and revenue began to flow.

Cracks Begin to Show

From day one, Scott invested in big-company infrastructure. This included ServiceTitan CRM, outsourced payroll, and the operational systems you’d expect from a much larger shop.

The intention was to scale quickly, but the cost structure was heavy for a brand-new business.

The partner he relied on for technical work was more comfortable in sales than in the field. That mismatch showed up in costly mistakes, including a flooded upstairs system that caused tens of thousands in damage.

Lead Flow Collapse

By midsummer, those cracks widened. Just as Scott outsourced call answering to free up his time, lead flow dropped sharply. Even during what should have been peak season.

The fixed costs didn’t budge. Neither did payroll. Customer complaints started to pile up, sales opportunities were missed, and installs required rework. The partner’s motivation faded as commissions slowed, leaving Scott carrying the operational load. Burnout set in for both him and his wife.

And that was the beginning of the end.

Lessons from the Collapse

If you’re going to start in the trades, you need to:

Build slow and lean. Avoid locking yourself into big software bills and overhead before revenue supports it.
Match lead gen to your capacity. The wrong marketing channel or customer segment can bleed you dry.
Vet partners like you vet deals. Skill, reliability, and long-term buy-in matter more than talk.
Invest in relationships early. Supply house reps and industry peers can help you keep the schedule full when the phones go quiet.

After the Close

Scott’s business shut down after just 10 months. Operational strain, a faltering lead pipeline, and a misaligned partnership left no way forward.

Still, walking away didn’t end his interest in the trades. If anything, the failure reshaped his approach. Next time, he’ll buy rather than build, choose a business aligned with his skill set, and move at a deliberate pace.

Starting from zero showed him the reality behind the rosy numbers along with the value of patience as much as hustle.

Tell Me What You’re Thinking

If you want to get into the trades business, consider both buying and starting from scratch. That’s the only way to make an informed decision. I hope this personal story from Scott helps you better establish a course for your future.