🍟 Thursday 3: Bill Miller | The DripBar | & More
Lessons from a hedge fund legend + a hydration therapy bar
Welcome to The Wolf Report, a 2x/week email covering up & coming franchises & small business entrepreneur’s. If you’re reading this but haven’t subscribed, you can do so here:
Hope everyone is staying safe out there with covid cases running rampant once again.
Today we have an interesting line up that includes learnings from college kids cleaning windows, to a hedge fund legend who made early bets on Bitcoin and Amazon.
And for our breakdown, I found an emerging brand in a category that is starting to heat up.
Let’s get to it! 👇
This article discusses the journey of Bill Miller, a famous hedge fund manager who’s known for betting early and aggressively on Amazon, Dell, and Bitcoin.
There’s one quote in particular from him that resonated with me:
“Most people try to maximize the number of times they’re right. The real question is how much you make when you’re right.”
I’ve learned this mentality also applies to entrepreneurship. Many entrepreneur’s will double down triple down on opportunities once they see there’s proof of concept and develop massive conviction i.e. the franchisee who went all in on OrangeTheory.
You only have to be right once to change your life!
Johnny Robinson aka @SqueegeeGod on Twitter, only just recently graduated college. But him and his best friend Sergio are the owners of a $700,000 window cleaning business that they started while they were sophomores.
Not only is window cleaning a business with crazy low startup costs that you can profit from immediately - there’s a way to build these local service businesses by leveraging subcontractors, so that you’re not tied up with labor (or cleaning the windows yourself).
I don’t think this is a business to go “all in” on, but it can be a stepping stone that provides semi-absentee cashflow while freeing up your time to explore other ventures.
One Breakdown: The DripBar
Founded in 2016, franchising since 2019
Based in Massachusetts; 7 units open as of 2021
Offers IV therapy services, as well as retail supplement products
Fees + Investment
Franchise Fee: $55,000
Royalty: 7% of gross sales
Brand Fund: 1% of gross sales
Initial Investment: $132K - $278K
The following information is based on the performance of an affiliate location that first opened in 2015
Note: the gross revenue above only accounts for gross revenue from the sales of IV therapy services, not retail products. The location also operates in a 2,000 sq ft facility, whereas franchisees are expected to operate in 1,000 - 1,500 sq ft retail spaces.
The Wolf’s Take 🍟
This is the second IV therapy franchise I’ve covered - after covering Hydrate IV Bar in Week 6.
Both franchises are new (each of them founded in 2016), and the growth of IV bars in general is still in early innings from a national standpoint. The DripBar has a lower investment than Hydrate IV, topping out at $278k compared to $381k.
While it’s a small sample size with just 1 location, the business has grown steadily even through covid, and returns above $200k after accounting for all expenses.
I’m unsure of the longevity of this business as the medical community is unclear on the value they provide, but from a consumer standpoint there seems to be major buy-in wherever these locations are present!
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That’s it for this edition of The Wolf Report. Feel free to reply with any questions or feedback. If someone sent this your way and you haven’t subscribed yet, you can also do that below. Thanks and see you next week!
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