Business Education

Independent Service Providers are Being Acquired and Local Businesses Can Use this Practice to Their Advantage

Did you know your local service providers may not actually be part of an independent, small business? That’s right. The plumber you’ve called before, the electrician you’ve seen working down the street, or even the HVAC tech who has been at your neighbor’s house. While you may recognize their names and logos and think they’re a mom-and-pop organization, they very well be working for a large corporation.

For people in the trades, this isn’t news. They’ve known about this for some time. It goes back to the COVID shutdowns when conglomerates realized the true value of “essential” services. These megacorporations recognized the potential earning power of local service providers and began to quietly acquire them. In order to maximize these new assets, the conglomerates allowed them to keep their existing names. But, when people call what they believe is their local service provider, they are really talking to a call center in another state or country.

While many independent, small businesses use call centers, the difference is the technicians working for the acquisitions are no longer just trade professionals – they are now salespeople who push additional products and services. The individuals employed by these bought-out companies take the opportunity of their visits to upsell and their customers aren’t aware the familiar mom-and-pop business does not directly employ them. But, it’s not just the fact that these companies are ostensible fronts for selling additional products and services to increase profits for big corporations. It’s also the fact that legitimate small businesses must compete for the same customers.

How Independent Businesses Can Take Advantage of Conglomerates Acquiring Competitors to Better Market Themselves

Although it may be discouraging to compete against other companies backed by such deep pockets, there are some benefits you as a small business owner can tap into and use to grow your customer base. Yep, small, local businesses can use this trend to their advantage by emphasizing their authenticity and commitment to the community in their marketing efforts. Here are some strategies they can use you can copy in your own community:

Highlight your local ownership. Emphasize your business is locally owned and operated by community members who are invested in the area. This can be done through website content, social media posts, and even in-store signage. Also, any vehicles, uniforms, and equipment.
Engage with the community. Participate in local events, sponsor community initiatives, and collaborate with other local businesses to demonstrate your commitment to the community. This helps build trust and loyalty among local customers.
Personalize your marketing. Use personalized marketing strategies, such as email campaigns, to connect with customers on a more personal level. Share the stories of vendors, employees, and customers to create a sense of community and belonging.
Offer unique, local products or services. Highlight any unique products or services that are specific to your local area or that cater to the needs of the community. This can help differentiate your business from larger corporations and attract customers who value local products and services.
Leverage online reviews and testimonials. Encourage satisfied customers to leave positive reviews on platforms like Google, Yelp, or social media. Share these reviews in marketing materials to showcase your support of the local community.
Maintain a strong online presence. Ensure your business has a well-optimized website, active social media accounts, and accurate listings on local directories and review sites. This helps potential customers find your business and learn more about its local roots and commitment to the community.
Offer superior customer service. Small businesses can often provide a more personalized and attentive customer experience compared to larger corporations. Emphasize this in your marketing materials and strive to consistently deliver exceptional service to build a loyal customer base.

By focusing on local roots, community involvement, and personalized service, small businesses like yours can effectively differentiate themselves from larger corporations and attract customers who value authenticity and local connections.

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You can call us for your free appointment at (602) 541-1760, or, if you prefer, <a href = "mailto.jwaters@watersbusinessconsulting.com”>send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.

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Tips for Creating an Effective Employee Social Media Policy

May 31, 2017 No Comments

Social media touches every part of your business, whether you like it or not, and it can build your brand just as easily as it can wreck it. One careless post from an employee is all it takes to create a real headache. Here’s how to strike the right balance between protecting your company and respecting your team’s freedom with a clear, effective social media policy.

How Cannon’s Upholstery Built the Systems to Scale Past $1,000,000

October 20, 2026 No Comments

.elementor-widget-text-editor{font-family:var( –e-global-typography-text-font-family ), Sans-serif;font-weight:var( –e-global-typography-text-font-weight );color:var( –e-global-color-text );}.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:var( –e-global-color-primary );}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap, .elementor-widget-text-editor.elementor-drop-cap-view-default .elementor-drop-cap{color:var( –e-global-color-primary );border-color:var( –e-global-color-primary );} Strong Demand, Stretched Leadership Cannon’s Upholstery, a Phoenix-based upholstery business led by Latrice Cannon, had what most small businesses want most: an established brand, strong market demand, and roughly $600,000 to $700,000 in annual revenue. What it didn’t have was the operational bandwidth to grow beyond that plateau. Production scheduling was reactive rather than planned, job tracking lived in people’s heads and notebooks instead of a centralized system, and Cannon’s own time was stretched across estimating, customer communication, material ordering, accounting, and financial oversight all at once. Ready to Grow, But Not Yet Built to Scale In February 2025, Cannon engaged Waters Business Consulting Group to support the company’s next phase of growth and operational refinement. The core issue was clear: reactive scheduling was creating production bottlenecks and overbooking, and without a centralized system for tracking jobs, it was difficult to know project status at a glance. Forecasting and margin visibility were limited, workflows across estimating, billing, and accounts receivable were inconsistent, and Cannon’s own bandwidth constraints made it hard to delegate or train staff systematically. Staffing challenges called for clearer role definitions and accountability, and marketing lacked a structured, data-driven strategy tied to actual growth targets. Without defined KPIs, it was hard to know whether the business was actually improving month over month — even as ownership pushed to expand both its commercial and residential client base. A 150-Day Plan Built on Data WBCG introduced its Profit by Design™ framework, starting with a comprehensive business assessment across marketing, sales, finances, organizational structure, and culture. A thorough analysis of three years of profit-and-loss trends fed into a two-to-three-year financial forecasting model, giving Cannon clarity on exactly how many transactions would be needed to hit higher revenue and margin targets. From there, the work turned operational: streamlined estimating and scheduling workflows to reduce the bottlenecks that had been slowing production, a new organizational chart with draft position descriptions tied to performance metrics, and pricing and cost analysis guidance aimed at strengthening gross margins. WBCG also completed a break-even analysis to determine when the business could afford to hire an internal bookkeeper and office support, then helped Cannon actually make that hire — developing position descriptions and assisting with training. A data-driven marketing strategy focused on commercial-sector expansion and brand leverage, and weekly coaching sessions kept the whole plan moving through a structured 150-day action plan designed to stabilize operations and set up sustainable growth. The Results: Growth With a Foundation Underneath It By 2025, Cannon’s Upholstery had grown to approximately $950,000 in annual revenue with roughly a 35% gross profit margin — solid progress toward the $1.2 million baseline the engagement was built around. Streamlined estimating drove higher project conversion rates, and the business now has structured financial forecasting, defined KPIs, and clearer operational accountability in place to support continued growth. Just as important, Cannon’s has a documented three-year strategic roadmap and the organizational clarity to pursue expanded commercial and residential opportunities deliberately, rather than reactively — along with the early groundwork for an eventual succession plan. Ready to Build the Systems Behind Your Growth? Strong demand can only carry a business so far without the operational structure to support it. If you’re ready to move from reactive to strategic, a free consultation can help map out what that looks like for your business. Contact Waters Business Consulting Group to schedule a free consultation.

How Affordable Fire and Safety Doubled Its Service Division and Landed a Successful Acquisition

September 15, 2026 No Comments

Chad Connor started Affordable Fire and Safety in 1998, building a family-owned company that installed commercial and residential fire safety equipment. Over two decades, AFS became a trusted name in the industry — but by the time Chad brought in outside help, the business was carrying an underperforming division, tight cash flow, and no clear plan for what came next. “I hired John with WBCG in February of 2019. We now have much better cash flow, we just had our best month ever (both top and bottom line) and we believe that better months are in our future,” said Chad Connor, Owner of Affordable Fire and Safety. “John’s team will provide a business with the resources needed to grow. We meet weekly and it forces me to focus on my business and not just get wrapped up in the day-to-day. Now that we are getting a firm grip on establishing our processes, my stress level has decreased dramatically and I’m starting to enjoy my business again.” A Business With Room to Improve AFS needed help across several fronts at once. Operations, processes, and procedures had room to tighten up, and gross margins and cash flow both needed attention. The company’s construction division was underperforming, dragging on overall results, and there was no exit strategy in place despite Chad’s long tenure running the business. Revenue performance needed improvement, EBITDA and business valuation were both low, and the company’s culture needed real investment. Fixing the Fundamentals First Waters Business Consulting Group leaned on John Waters’ own experience operating, building, and growing construction businesses, applying it directly to how AFS managed jobs and job costing. The team established a baseline for days of sales outstanding (DSO) and worked with the entire team to track the leading indicators that would move that number — and the cash flow behind it. Key performance metrics were tied directly to performance-based compensation plans, giving technicians a real incentive to improve efficiency. Alongside the numbers, the team worked with AFS to refine workflow processes across the organization. Better Margins, a Bigger Service Business, and an Eventual Sale The results showed up quickly and then compounded. DSO improved from 46 days down to 35 days, driving cash flow improvements substantial enough that Chad was able to take a full month away from the business — something that would have been unthinkable before. The team also worked alongside Chad to hire a qualified new Operations Manager, and today AFS has stronger people and a stronger culture, built on real standards for technicians. An Efficiency Tracking Board helped technicians become more productive, driving up gross margins. After identifying the construction division as a drag on the business — its low gross margins were working against AFS’s growth goals — the team helped Chad make the strategic call to close it and redirect those resources into the Service division. That division has since doubled in revenue, and gross profit margins trending toward 40%. Waters Business Consulting Group also worked with Chad on a strategic buyout plan with his business partner, continuing to grow toward a $10 million annual revenue target. The strength of that turnaround ultimately made Affordable Fire and Safety an attractive acquisition target, and with Waters Business Consulting Group’s help, the business was successfully acquired by Marmic Fire & Safety in 2021. Ready to Fix Your Fundamentals? Sometimes the biggest growth opportunity is cutting what isn’t working and doubling down on what is. If your business needs a clearer picture of its margins, cash flow, or exit strategy, a free consultation is the place to start. Contact Waters Business Consulting Group to schedule your free consultation.

Independent Service Providers are Being Acquired and Local Businesses Can Use this Practice to Their Advantage

Independent Service Providers are Being Acquired and Local Businesses Can Use this Practice to Their Advantage

How Independent Businesses Can Take Advantage of Conglomerates Acquiring Competitors to Better Market Themselves

Want to Accomplish More?

Like this article?

Related Posts

Tips for Creating an Effective Employee Social Media Policy

How Cannon’s Upholstery Built the Systems to Scale Past $1,000,000

How Affordable Fire and Safety Doubled Its Service Division and Landed a Successful Acquisition

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