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.
- You want the answers to be YES to each of the questions.
- If you get a single NO, you might what to re-consider your choice –
- If you get two NO’s, move on immediately.
- Does the Business Survive in Spite of Itself?
This means, does the business seem to be making money? It has survived for a while, and continues to, despite poor service, shoddy presentation, bad attitudes from its owners and team or general chaos and disarray. It is still making even a little bit of money?
- Does The Business Generate Cash Flow as Compared To Being Asset Intensive?
Buy businesses for cash flow, and leave assets to property investing. Be wary of any business with large asset investments. You’re looking for cash flow. Worry about depreciation later. All of the business greats worried about business and cash flow first – once they were making the big bucks they needed someplace to park the money so they bought real estate.
Don’t try to re-invent the wheel – follow the path of the most successful businessmen in the world. Go for the cash.
They left breadcrumbs for that reason! Success Leaves Clues!
- Can The Business Be Run With Low Skills?
You’re looking for a simple business that sells things people want to buy, and are buying.
Stay Away from businesses’ that require highly technical training, special skills or licenses. Unless of course, you hold that particular skill or license and are looking to buy a job.
McDonalds is the largest restaurant in the world and it is pretty much run by a bunch of high school kids that have no idea what they are doing. Buy and own a business that can be run by a manager and regular high-school educated employees.
- Produces Inferior Sales and Marketing Materials:Most business owners are completely clueless when it comes to marketing, and poor marketing is a good sign of an opportunity because it’s one of the easiest things to fix, correct, and improve. Is there room to improve the marketing?
- The Business Appears To Have Big Upside:
Look at the numbers. Is the business running at 25% capacity and can you get it to 75% in a relatively short period of time? Those are some bottom-line benchmark numbers that can give you guidance in your own opportunities.
I won’t waste a minute more of my time if I can’t see a minimum 50% increases potential in the business within 12 months.
What about the one you are looking at? Can you foresee a 50% increase in sales within 12 months?
Is a “Fair & Reasonable” Deal for you?
Don’t fall in love with the business. Fall in love with the deal.
Remember, you make the money when you buy, and you take the profits when you sell.
Every day, owners look to sell for a variety of different reasons.
Find a win-win scenario that benefits you both:
You get a fair and reasonable deal, and the sellers get the relief of being out of a business they don’t want anymore.
Again . . . unless you’re some sort of Internet JEDI master or Internet Guru, don’t even think about “starting up” a new business. All you need to do is get the Yes answers to 5 Business Buying Questions and they can make you rich.
Be like the rest of us and buy an existing business, grow revenue and profits, and then decide whether or not to sell it.