{"id":4751,"date":"2026-08-02T12:41:53","date_gmt":"2026-08-02T12:41:53","guid":{"rendered":"https:\/\/crosscountrymovingteams.com\/?p=4751"},"modified":"2026-08-02T12:41:53","modified_gmt":"2026-08-02T12:41:53","slug":"its-really-not-for-the-faint-of-heart-this-29-year-old-ceo-became-a-business-owner-doubled-revenue-in-3-years-and-learned-what-car-not-to-drive","status":"publish","type":"post","link":"https:\/\/crosscountrymovingteams.com\/?p=4751","title":{"rendered":"\u2018It\u2019s really not for the faint of heart\u2019: This 29-year-old CEO became a business owner, doubled revenue in 3 years, and learned what car not to drive"},"content":{"rendered":"
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\u201cI regret that so much to this day,\u201d Philips said. \u201cI should have just taken the Camry.\u201d<\/p>\n

Read more Trump backs off from new strikes on Iran, claiming Mideast allies have outlines of an emerging deal to reopen the Strait of Hormuz<\/a><\/p>\n

Lucas Philips grew up watching his father do something increasingly rare among his generation: own a small business outright and still make it home in time for school drop-offs and hockey practice. At 26, he decided to do the same \u2014 acquiring a niche manufacturer of custom automotive interiors in Newark, N.J. Now 29, Philips told Fortune<\/em> that he\u2019s glad he did it, but \u201cit\u2019s really not for the faint of heart.\u201d<\/p>\n

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Since acquiring Newark Auto, Philips has pushed annual revenue from \u201ca little over a million\u201d at purchase to more than $3 million this year, in roughly five years of operating time. He\u2019s done it with bolt-on acquisitions, long commutes, and a roster of hourly workers who have never seen the perks of startup life \u2014 Philips jokes about the proverbial ping-pong table in the office \u2014 but he\u2019s also learned that in the world of small business, the smallest details can derail a deal.<\/p>\n

Like: don\u2019t rent a convertible when you\u2019re making a business trip to try to acquire a new subsidiary.<\/p>\n

From dorm-room startup to \u201cbuy then build\u201d<\/h2>\n

Philips traces his entrepreneurial drive to something older than Northwestern. His family immigrated to New York in the Ellis Island era a little over 100 years ago and, frankly, nobody wanted to hire them. He\u2019s from several generations of Jewish small business owners, so it was only natural for him to think this way, he said.<\/p>\n

The list of businesses is somewhat endless. One grandfather sold paper goods \u2014 boxes, plastic wrap \u2014 to the Jewish bakeries of New York. His father sold sunglasses imported from China before anyone was importing anything from China, then hair accessories, then bought a high-end custom furniture business that now has a showroom in the B&B building on Madison Avenue and a factory in Christiansburg, Virginia. <\/p>\n

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As an undergraduate at Northwestern, Philips launched a coffee concept and raised \u201cmillions of dollars in outside capital\u201d before graduating, only to find that the reality of reporting to investors and fighting with an MBA cofounder was not the life he wanted. He described leaving that venture disillusioned with the equity-funded startup model and looking for a path that would give him more control, even if it meant more personal risk.<\/p>\n

A friend from Kellogg introduced him to the idea of entrepreneurship through acquisition (ETA) and pointed him toward Walker Deibel\u2019s book Buy Then Build<\/em>. Philips said reading it \u201cclicked\u201d in a way that academic guides failed to, making clear that he could \u201cbuy a business with debt\u201d instead of raising another equity round or bootstrapping from zero. At age 23 in 2021, he joined the Acquisition Lab, which works to provide exits for small business owners and entries for ETA aspirants like Philips. Within 10 weeks of completing the lab, he had a letter of intent to buy Newark Auto, and closed another two months later.<\/p>\n

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A personal guarantee and \u201cburning the boats\u201d<\/h2>\n

What distinguishes Philips\u2019s path from the MBA search-fund world is both the capital stack and the incentive structure. The search fund model \u2014 popularized at Stanford and Harvard \u2014 lets MBAs eventually own 20%\u201325% of a business, with institutional equity and no personal guarantee on the debt. They can be fired. The SBA model Philips used is different: 10% down, a personally guaranteed note on the remaining 90%, and 100% ownership. He frames the difference in terms borrowed from Noam Wasserman\u2019s The Founder\u2019s Dilemmas<\/em>: the \u201cking outcome\u201d versus the \u201crich outcome.\u201d He wanted to be king.<\/p>\n

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\u201cOnce you buy the business, it is your business and no matter what skeletons are buried in the closet, you\u2019re stuck with the thing,\u201d he said, joking that it\u2019s not like you can go to some \u201ccustomer service counter\u201d and return it if you don\u2019t like what you find post-closing. That\u2019s not the way venture capital works, he clarified, where investors expect a high failure rate and simply write off the capital if an idea doesn\u2019t work. He described the SBA loan approach as something like \u201cburning the boats\u201d in warfare, or \u201ctaking out a mortgage on your own career.\u201d You are on the hook for whatever happens next.<\/p>\n

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Philips insisted that no one should make that kind of bet without formal training. He tells younger would-be acquirers to read Buy Then Build<\/em>, sit through the lab\u2019s modules on search and diligence, and then reconsider whether they still want to proceed. \u201cGetting training on how to do that right is so important,\u201d he says.<\/p>\n

Waking up at 4:30 a.m. to run a blue-collar business<\/h2>\n

If his startup years were defined by pitch decks and investor updates, Philips\u2019 life now is defined by alarms and factory floors. He lives on the Upper West Side of Manhattan \u2014 on the same block where he grew up \u2014 commuting daily to Newark to oversee a manufacturing operation whose workers are on the line at 7:30 a.m.<\/p>\n

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\u201cI wake up between 4:30 and 5:30, and I\u2019m in the office by 7, 7:30 every morning,\u201d he said, adding that manufacturing \u201cgenerally doesn\u2019t work 9 to 5\u201d and often runs 7:30 to 4 or multiple shifts.<\/p>\n

Philips contrasted his environment with the perk-laden offices that many of his Northwestern peers inhabit. \u201cThe people who work for me do not have a background working at companies that provide foosball tables and free lunch every day.\u201d Instead, he\u2019s managing hourly workers who have spent their careers in plants and warehouses, and who care more about predictable schedules, overtime opportunities, and respectful supervisors than about kombucha on tap.<\/p>\n

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He got a dog \u2014 a mini Bernedoodle he named Mabel \u2014 about a year into running the business. After all, running a small manufacturing company \u201ccan be quite lonely at the top.\u201d All his friends from Northwestern are in tech, finance, or consulting; the ones he relates to most are in real estate, people who \u201ceat what they kill.\u201d His father always had a dog at the office, too, he said.<\/p>\n

One of his biggest surprises has been how much he enjoys \u201cshaping a workplace for those people that is just better than what they\u2019ve experienced in the past\u201d and building a team dynamic in a context where benefits and culture look very different from a tech unicorn\u2019s.<\/p>\n

Multiplying revenue \u2014 and delaying the 401(k)<\/h2>\n

Philips said he\u2019s been able to grow revenue by folding in four additional, smaller businesses, integrating their operations into his factory, and reinvesting heavily in systems rather than pulling cash out for himself.<\/p>\n

Unlike older buyers in their 40s and 50s who rely on cash flow to fund mortgages and college tuition, Philips has treated the business more like a compounding asset than a personal ATM. He said he has \u201chad to invest in the business and not invest in my 401(k)\u201d over the past few years, and at times his family has stepped in with capital to support integration work. \u201cThe business that I have now has the potential to grow far greater than the one that I bought five years ago, but I need to grow into that, and I\u2019m 29, and that\u2019s fine,\u201d he added.<\/p>\n

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Philips is quick to push back on the idea that his story is a plug-and-play template for frustrated twenty-somethings who can\u2019t land a corporate job. Some of the hardest parts of his job \u2014 like firing someone 30 years older than you who has been with the company longer than he has been alive \u2014 require emotional maturity and a tolerance for conflict that most early-career workers don\u2019t yet have. People who disrespected him for being young, he said, didn\u2019t last: \u201cOnce that person was no longer in the business, no one felt that way anymore.\u201d<\/p>\n

He\u2019s talked to 22-year-olds who say they want to follow his path and said that makes him queasy. \u201cI don\u2019t know if I would recommend that they buy a business as their first thing,\u201d he said. When strangers reach out, he routes them first to books and courses, then warns them about the personal guarantee and the possibility of bankruptcy if cash flows falter. He wants to make sure they are truly willing to burn the boats.<\/p>\n

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His caution tracks with a broader reality: per the Bureau of Labor Statistics, roughly 20% of new businesses fail within their first year and about 40% within three years, making entrepreneurship a high-risk endeavor even without a personal guarantee. Layer SBA debt and a blue-collar workforce on top of that, and Philips argues that ETA becomes a niche path for a specific kind of operator \u2014 optimistic enough to push through, but sober enough to understand the stakes.<\/p>\n

AI in the back office, people on the shop floor<\/h2>\n

Philips is part of a micro-generation of founders as comfortable in an AI-enabled productivity suite as they are walking a factory floor. He said he spends much of his day in Claude Code building tools that help his team see their priorities, manage work orders, and reduce administrative friction. He also keeps a 1982 Porsche 911 for attending car shows \u2014 a professional necessity in his business, and a symbol of the lesson he learned in Oregon.<\/p>\n

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But he\u2019s adamant that AI won\u2019t soon replace his stitchers and cutters. \u201cI\u2019m never going to have AI robots running my sewing machines,\u201d he said. Newark Auto\u2019s work is bespoke and varied: one day the shop is redoing seats for a vintage Porsche, the next for a newer model, the next for a BMW or Mercedes. To automate that, he\u2019d have to convert an enormous library of product files into instructions for AI-driven machinery, a process he says would demand \u201ctremendous resources\u201d that neither he nor his competitors have. \u201cAI is an enabler for us, but it\u2019s not a substitute for any of my blue-collar workers.\u201d<\/p>\n

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Lucas Philips became a CEO at 26 and now finds himself getting up at 4:30 am to commute from Manhattan to Newark. 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