Rachael and Michael Show How They Capitalize on Being a New Retailer
by Michael and Rachael Connors, Owners, American Dive Zone, MI
In 2024, we bought a dive shop in Grand Rapids, MI. Not inherited. Not franchised. Bought it. This is our story.
AS A NEW BUSINESS OWNER, you have an opportunity to use that “newness” to your advantage. If the previous owner turned down an idea or partnership, there’s a good chance that opportunity will circle back to you. Maybe they declined because it wasn’t an area they wanted to prioritize, or they didn’t have the bandwidth to dedicate the necessary time or energy. In some cases, the opportunity came to them just as they were planning their exit strategy, so starting something new wasn’t at the top of their list. As a new owner, you get to decide: Is the opportunity they turned down aligned with how you want to grow? Is it something you have the time, bandwidth, and energy to pursue? If the answer is yes, pursuing these opportunities and new introductions may open up a whole new growth channel.
The Strength of Weak Ties: This is a concept my father taught me early in my career, and it has served me incredibly well as a new owner. If you ask a close friend for help, they’ll usually say yes – no questions asked. But what about someone your friend knows? A weaker tie. If your friend says, “Hey, can you help my friend out?” that person is often just as willing. That’s the power of weak ties. Leaning into our customers’ networks with this mindset helped us grow our student counts at a remarkable rate in our first year of ownership.
In our case, being new owners opened the door to three major partnerships – each an opportunity the previous owner had declined. These opportunities came from customers who wanted to open their networks to us and connect us with local organizations, gyms, and schools that could benefit from our services.
Opportunity #1: A National Youth Organization: On our very first day shadowing a pool class before the acquisition, a diver approached us with the chance to connect with a large national youth organization. He didn’t know us well, but because we were new, he was excited to see whether we might be interested.
The previous owner had turned down the idea due to limited bandwidth and staff engagement. We stayed in touch with the diver over the course of a year, met the organization’s director, built a program, launched a partnership, and executed two successful classes. In our first year partnering with this organization, we trained 21 students, and we are on track to double that number in 2026 from all the buzz that came from those who participated this past year.
Opportunity #2: A New Pool Partnership: Shortly after taking over, we learned that the pool our shop had used for 20 years was going to increase our rental rate tenfold (no exaggeration). It didn’t make sense from a business perspective to continue with them going forward – we would have lost money on every class. As any dive shop knows, a pool is critical to operating a dive shop. We urgently needed a new facility, but as new owners, we had few contacts in the local aquatic facility community. Our customers, however, did. One customer knew the facilities coordinator at a local aquatic center and was thrilled to introduce us. That introduction led not only to a new pool partnership but also to significantly better pricing. From a business perspective, it was a huge win – and our customer who made the introduction felt like a hero.
Opportunity #3: A High School Scuba Program: As we got to know the previous owner’s staff, we learned that one of our divemasters was also a teacher. He was passionate about diving and had always wanted to start a scuba club at his school, but the previous owner didn’t have the time or bandwidth to develop a program. This opportunity aligned perfectly with our goals of expanding local youth diving programs. He introduced us to fellow teachers at his school, we met with the aquatics facility coordinator, and shortly after, we certified 15 open water students. This year, we’re running the program again. Ten students have started the certification, and a total of 21 have expressed interest in starting in 2026. What’s even cooler – most of these high school students are interested in pursuing a career in public safety and having a scuba certification gives them a competitive advantage!
What These Partnerships Have Given Us: These partnerships helped us grow quickly. More importantly, they allowed us to forecast recurring revenue year over year. If we certified X number of students last year and add word-of-mouth and social media on top of that, we can anticipate steady growth and more closely forecast our certification numbers year after year. Predictable revenue means we can invest in other strategic areas to support the success of our business.
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What New Owners Can Do Right Away: Ask the previous owner about any partnerships or programs they declined and whether they still have the contacts.
Get in front of your customers. Don’t hide in the office. Be present and listen. Opportunities come from conversations.
Introduce yourself, then shift the focus to them. Learn what your customers do outside of diving – that’s where possibilities emerge.
If you’re facing a challenge you can’t solve alone, lean on your customer base. They often know someone who knows someone and would love to help their local dive shop thrive. They will find your weak ties.
As we all embark on a new year, remember, your customers can bring you new connections, new ideas, and an entirely new network. You just have to ask.
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