Monthly Archives: February 2018
Monthly Archives: February 2018
When you’re getting ready to start a small business, there’s lots to consider, from proof of concept to production costs. It’s important to ask yourself if you have everything in place to succeed. Here are six things to keep in mind when starting your own business. Make sure you’re cut out to be an entrepreneur […]
When you decide to begin looking for a business, You Need to Know What To Look For.
If you don’t, you run the risk of being taken advantage of, getting ripped off, losing a bunch of
money, and really having a bad experience
Below is a list of 8 things you need to know so you can quickly determine whether or not the business is worthy of your time to look at any further.
1. Does the business have repeat customers?
Does it survive despite itself? Is the business making money despite current operations?
Does it have repeat business and customers?Repeat customers are a big deal – because it equals profits.
It means whatever they are selling, people like it and at a quick glance, you will probably see a little marketing savvy, you can make the business explode.
Has it survived for a while despite poor service and bad attitudes from its owners and employees?
If so, you have a winner and all you need to do is get in there, change a few things and watch the money start pouring in.
2. Does it Generate Cash Flow?
Buy businesses for cash flow, and leave the real estate to real estate investors. You’re looking for cash flow not depreciation.
However, if the business you are looking at has real estate attached, you might be able to do a “Vertical Breakup” and sell off the real estate to an investor, raise cash and then fix the business and sell it separately.
3. Can It Be Run With Low Skills?
You’re looking for a simple business that sells things people want to buy – and are buying. Most entrepreneurs don’t want a professional practice such as an accounting firm, a law practice, or any business that requires huge investments of highly technical training or skills to run it.
Can you imagine being the boss of a bunch of attorneys or accountants and you don’t have a degree in it? With the ego’s involved, you would be asking for problems.
4. How Are The Sales And Marketing Efforts?
Poor marketing is a good sign of and excellent opportunity.Most business owners are completely clueless about marketing because they are too busy working in the business all day and focused on surviving.
You need to implement marketing systems to get the phone ringing and sales always increase with a ringing phone!
One would think this is common sense, but once you begin looking, you will see it is quite common there is little or no marketing going on in most business that go up for sale.
It is one of the first things the seller cuts back on way before they come to the decision to sell. (It is also where you will find the “Off-Balance-Sheet-Assets” I teach my students and coaching members about and where to look).
5. Can The Business Be Run By a Jockey?
Can you easily train a manager to go in and run the systems you put in place? Can you move one of employees into management?
Chances are, there are one or more employees that know a lot more about the business than you do and they would be thrilled to share their ideas with you and “show their stuff.”
When you put good people in management, good things happen. It gives you the ability to devote more time on marketing and promotions, which is paramount to increasing sales so you can make more money.
6. Does It Have A Big Upside?
Look at the numbers. How much is the current owner pulling out of the business with salary and other seller owner benefits?
Is it a business that is making $3,000 per month and can rapidly be increased to $10,000 per month?
The ABOD (Annual Business Operating Data) I developed is a quick and easy way to run through the numbers so you can quickly determine exactly how much the seller is pulling out of the company.
It also automatically identifies the ratio of expenses so you can compare them to industry norms so you can prioritize needed operational changes.
The ABOD is a “Must-Have” Tool.
7. Is It A Fair Deal?
Don’t fall in love with the business. Fall in love with the deal.
Remember- your make money when you buy, then you increase the profit and create cash flow while you own, and you “Cash-Out” when you sell.
There are more deals out there than you can possibly imagine and every single day more business owners wake up and decide to sell their business for one reason or another.
All you need to do is fine one, negotiate a “Fair and Reasonable” price and a win/win scenario that benefits both you and the seller.
You get a good deal, and the sellers gets out owning a business they are tired of running for whatever reason.
Would you like to learn how to buy a business so you can become an entrepreneur and experience the personal freedoms of being in business for yourself?
I can show you how to buy businesses even if you have zero experience and no idea where to start.
To learn more, please feel free to Contact Me.
For Business Buyers, if you don’t ask the 20 Business Questions , the bank will ask them and you will need to get answers anyway, so you might as well get them now.
Besides ……. you’re going to want to know them anyway. Otherwise, it makes no sense for you to buy one, because you won’t be in business very long.
For Business Brokers, if you get answers to these Business Questions BEFORE you begin marketing the business, you will have a tool to make a great marketing piece, be able to intelligently answer potential buyer questions, and look brilliant over the competition because 99.7% of them have no idea what they are doing or why they are doing it.
Lets Get Into It ….
There you have it ….. 20 Business Questions you need to get answers to before you buy a business.
The questions are going to come up anyway, so why not get the answers to them ahead of time.
>>> CONTACT US <<<<
if you need a little guidance and assistance.
In 1995, everything changed for me.
I read a book that changed my life.
It made me quit the commercial fishing business and go in a completely different direction.
FYI: Commercial fishing is called a business but in reality, it is a JOB. You don’t make money if the boat isn’t working, and the only way to keep it on the high seas is to be on it.
Here’s what happened:
I’m working like a dog – my boat comes in on Sunday morning and leaves again in Sunday afternoon – I’m offshore one week and on-shore the next.
I was making a nice living for my family, and they had all of the “Toys”.
Vacations, Nice Clothes, Fancy Sneakers, New Bikes and Surfboards, etc.
However, I was working like a dog!
The week I was home, I’d be doing paperwork, selling fish, arranging for boat repairs, and recovering from working 20 hours per day for the 7 days offshore.
…. and at 35, I had already had a hip replacement.
I was burt-out.
On one of my trips to Price Club for the next weeks supplies, I happen to walk by the book table they have in the middle of the store and came across a book titled:“Rich Dad, Poor Dad.”
I’ll never forget that day, because it changed my life!
So I pick it up and began flipping through the pages, when I see something that stops me dead in my tracks.
I see THIS illustration:
And it hit me:
I’m in the upper left corner, the “E” corner!
I’m exchanging time for money. Admitted, I’m making good money, but I’m in the wrong quadrant!
In the book, Robert Kiyosaki suggests that that you follow a structured approach to get to “The Promised Land”:
And then from “Business Owner” to “Investor” where your money works for you
Well – I was in the E section because I had to WORK.
Now, you need to know THIS about me:
I make decisions pretty quickly – I don’t sit around long.
So I decided right then and there I was going to change whatever needed changing so I could go from “E” to “B.”
I had already lost my a$$ in stocks and commodities, so I decided to stick with businesses and real estate.
And for me, that meant owning businesses that would pay me to own them.
Anyhow… I decide right then and there what I wanted.
In 1995, much to the surprise of my entire family, I Quit the Fishing Business and became a businessman.
I built and sold a couple construction companies, developed land, had rental properties, bought and built a few real estate companies, etc.
Each one of them I got to a point where they paid me to stay away.
(The last Two I sold to International Franchises).
I LOVE doing this stuff and I can help you do it too.
Would you like to learn a bit more about how you can go about buying and investing in businesses without anyone calling you, I encourage you to Click the Blue Button below and get the FREE Report I created.
After you read the report, if you are so inclined, feel free to contact me and we can discuss it.
5 Business Buying Questions You Can Ask, or See For Yourself in Less Than 2 Minutes …. And They Can Make You Rich!
How You Can Become a Jedi Master in Business and Leave The At Home Start-Ups in the Dust.
The past few years have been quite profitable for entrepreneurs with an eye for turning around existing businesses, and it’s going to get better for those of us looking to buy fix and flip businesses.
According to statistics, the next 15 years, the baby-boomer’s will be retiring in-mass.
Many of them are business owners and they will be selling and this will produce an enormous amount of business buying opportunities.
Given the current anti-business, lack of entrepreneurial teachings in the school system, and the anti-business atmosphere in the current political system, there will be less and less people looking to go into business for themselves, and more and more people simply looking for jobs.
This is great news for the entrepreneur because there are plenty and will be an increase in business opportunities to choose from, and plenty of well educated people looking to work for a paycheck.
The advantages of buying an existing business and increasing revenue are, in my opinion, the quickest and easiest way of attaining financial freedom and independence.
Unless you are a JEDI master with computers or the Internet like Frank Kern, you are much better off buying an existing business than you are at starting one on your own anyway.
I’m going to share with you the strategy I use and the 5 Business Buying Questions you can ask and get answers to in less than 2 minutes so you can quickly evaluate a business and save lots of time when looking.
Unless You Have a Book of Business From Your Current Job and Can Take It With You.
Unless, you have a current book of business you and take with you when you quit your current job, I believe it is Complete and Utter Insanity.
Especially if you have a family to support.
NONE ONE OF THEM had a family to support, nor did they have to worry about where the next meal was coming from.Continue reading
Buying a Business is Not Childs Play - Done Right, Fortunes Can Be Made. Done Wrong and Dreams Get Shattered, Families Break Apart, and Fortunes Can Be Completely Lost.
I’m currently looking for a few select people who want to learn how to flip a business.
If you are one of those people, who want to Learn How To Flip a Business, I will personally work with you one-on-one, and coach, teach, and mentor you to buy a profitable – ongoing business so you can begin living the lifestyle you want as a business owner and quite possibly retire rich someday.
More information About My PRIVATE Coaching Program and learning “How To Flip a Business” can be found by clicking the link below.
The *Secret Weapon* How To Flip a Business
What I learned early in my business career is that every single business in the world, no matter how big or small, and regardless of what they sell, all share FIVE Fundamental Elements of Success, and every business failure comes from losing TWO or THREE of them.
I call it my *Secret Weapon* because it allows me to quickly evaluate a business within minutes and identify those businesses with all the right things wrong with them.
It also helps me almost immediately identify the weak points and turn a struggling business into a cash machine in a matter of a few days instead of months or years.
For anyone looking to get into a business, knowing the Five Fundamentals is of paramount
importance because it slashes risk.
You will learn the *Secret Weapon* early on in the process so you can quickly evaluate and identify those businesses with all the right things wrong with them just like I do.
Easy as it may sound, you can’t get information like this in a school, and I seriously doubt anyone who actually knows and understands the Fundamentals will share them with you. In fact, every time I bring up a conversation about the Five Fundamentals with other successful entrepreneurs, they give me the ‘deer-in-the-headlights-look” so I simply change the conversation.
How To Flip a Business
To learn more about How to Flip a Business, >> Click Here <<
Even Business Mogul Donald Trump says you should buy an existing business instead of starting one.
The advantages of buying an existing business instead of starting one are numerous with the most obvious one being it saves you time.
Over 40% of people who buy a business end up being unhappy with it because they bought the wrong one, or bought for the wring reason.
So how do you find the business that is right for you? And more importantly, how do you insure that you are not wasting your time during the search process?
The Buyer Broker Process
Finding a business to purchase should be the final step in a process that begins with an evaluation of your skills and interests and a sound financial assessment.
Prior to buying a business, your Exclusive Business Broker will determine your budget and what types of business you are qualified to run and would enjoy owning.
It is helpful to look for a business that has some connection to types of work you’ve done in the past, or perhaps skills you’ve developed through a job or hobby. It’s almost always a mistake to buy a business you know little about.
Your lack of knowledge about the industry may create a steep learning curve that may hinder your ability to turn a profit with your new business.
It is also import to choose a business that you’re excited by.
It’s much easier to succeed in business when you enjoy the work you’re doing.
The 5 Fundamental Elements of Every Successful Business.
Call it the Holy Grail Of Business Success –
The sale price of any business is based on a multiple of trailing net profits, (or losses).
All you need to do to locate a great deal when you go to buy a business is find one with a good product and poor controls.
When you find it, (and there are plenty of them) you found a deal because every single business in the world, no matter how big or small operates the same exact way. They all need FIVE points to operate.
There Are No Exceptions To This Rule … None What-So-Ever.