February 5, 2018

How To Get Rich Flipping Businesses

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.

I can mentor and teach you how to buy a business the right Homes Buying Homes Class resized (Small)way so you can experience the personal freedoms and rewards of being business owners and live the American dream.

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.

>> Private Coaching Program <<<

If You Want To Learn How To Flip a Business or Become a Business Owner and Live An Abundant, Fulfilling Life, I Can Help You …  

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.

I Am Committed to
“Pulling Back The Curtain”
And Revealing EVERYTHING I KNOW.

How To Flip a Business

To learn more about How to Flip a Business, >> Click Here <<

February 5, 2018

Why You Should Consider Buying an Existing Business

Building your own business is hard work.

That’s why many entrepreneurs choose to Buy an Existing Business rather than starting from scratch.

But how can you avoid sinking all your resources into a business that is sure to fail?Trump on business

  • What should you look for?
  • What should you avoid?

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.

  • Suppose you want to start a retail business. It may take months for you to build an adequate inventory.
  • Opening your own restaurant means creating your own recipes and menus;
  • Building a manufacturing business from scratch can take years.

When you Buy an Existing Business, the “dirty work” has already been done for you.

Continue reading

February 5, 2018

How To Find The Right Business For You

How To Find The Right Business For You

How To Find The Right Business For YouAccording to industry statistics, over 90% of the people who begin the search to buy a business spend most of their time looking at businesses that don’t come close to meeting  their criteria.

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.

Continue reading

February 5, 2018

Fundamental Elements of Every Successful Business

The 5 Fundamental Elements of Every Successful Business.
Call it the Holy Grail Of Business Success – 

5 star engine picture

5 Cylinder Airplane Engine with 5 Business Points

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.

  • Lose One, and the business will be shaky.
  • Lose Two and the business is about to fail.
  • Lose Three, and failure is imminent.

There Are No Exceptions To This Rule … None What-So-Ever.

Continue reading

February 5, 2018

How To Begin Flipping Businesses – VIDEO

How To Begin Flipping Businesses

The first thing you need to recognize when you want to learn how to begin flipping businesses, is that all businesses are like a giant jigsaw puzzle.

Watch How To Begin Flipping Businesses Video …

 

Flipping Businesses is Much More Profitable Than Flipping Real Real Estate ….

…. Here’s Why …..

Fixing or flipping a small business is much easier than real estate for a variety of reasons, and in this brief article I am going to outline and touch on a few of them.

Below is a list of 5 advantages in dealing with businesses instead of real estate:

  1. Very little competition: You are not competing with every Tom, Dick and Harry that owns a hammer and a paint brush that stays up late at night watching HGTV shows, buys a “Get Rich Quick” Real Estate course on the internet, or attends a seminar at a hotel somewhere and plunks down a bunch of money for a course and “how to.”
  2. Seller Financing: Statistically, 84% of owners will carry back some or all of the financing, so locating money for the deal is right there at your fingertips.
  3. Immediate Cash Flow: If you pick the right deal you get cash flow the very next day.
  4. Fast Turn Around: Most businesses that are currently operating at a loss can be made profitable within in 60 to 90 days.
  5. You Control The Outcome: In a business, you control about 85% of what Your results are not dictated by government housing regulations or bank loan rates.

A business is totally under Your control. You pull the strings and You control it.

You also get cash flow, tax write-­‐offs, incentives, and a whole host of other immediate benefits.

You can’t say that about real estate market. Not in Land, Not in Houses, and not in Commercial Properties either.

No other investment in the world gives you so much power and control over the outcome.

To learn more about How To Begin Flipping Businesses, I encourage you to Download This Special Report – “How To Get Rich Flipping Businesses.”

 

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February 3, 2018

9 Ways to Find Money To Buy a Business

Business Financing Strategies

Business Financing Strategies

Have you ever wondered what your life would be like if you were a business owner and were in total control of your life?

Have you ever wanted to buy a business, but had no idea how, or where to look to find money to get started?

Is not knowing where to find money holding you back from pursuing your dreams of owning a business and controlling your life?

Spending time looking for a business without knowing how to get financing for it would be like a fisherman without a boat, a golfer without clubs, or baseball player without bat.

There are plenty of Business Financing Strategies and ways to fund a deal once you find one, and the better the deal, the easier it becomes to find the money!

Grab something to write with because I’m going to share with you 9 (out of about 100) different ways to finance the purchase of a business.

Business Financing Strategies:

  1. Private Money
  2. Hard Money
  3. Lines of Credit
  4. Banks and SBA
  5. Partners
  6. Credit Cards
  7. Your Own Cash
  8. Assuming Existing Financing
  9. Equity Exchanging

The purpose of this presentation is the share a few business financing strategies so you can begin thinking of different ways you can finance a business when the time comes for you to buy one.

I’m going to do my best to present to you the positives and negatives of each type of funding so you can get a better understanding of the process and when the time comes, make an informed decision for yourself.

Are You Ready to get started?

#1) Private Money   What is Private Money? Private Money is considered any money that an individual has pledged they will loan to you for the purpose of funding. Private money lenders can come from many different people in your life: These could be friends, family, business contacts, referrals, other investors, and of course, the Seller!

Anyone who has cash in a savings account, checking account, mutual fund, Certificate of Deposit, stocks, IRA’s (traditional and Roth) or any other financial instrument could be a potential private lender.

The seller of a business is also a terrific source of funding.

Private lenders will loan money to you based on their trust in you and the collateral that secures their funds which is the business, or real estate the business operates out of.

When individuals decide to loan you their savings for the purpose of funding deals, they’re most likely going to do it because it’s better return on their investment than sitting in a bank account someplace making 2 or 3% interest.

Here are the benefits of using private lending methods to purchase a business:

Quick Closings – When you have private money available to you, you can make offers with a quick closing date.  Many sellers will take a much lower price for a quick – cash closing.

My dad always says You Can Get All Cash, But I Set The Price, or You Can Set The Price, But I Set The Terms. You Can Have One or The Other – But Not Both

When you have private funds available to you this can set you apart from other buyers who may need 30 – 60 days to get financing.

No Points – Points are a percentage of the loan amount. For example, 1 point would be 1% of the loan amount. Usually points are paid in addition to the interest paid. If a lender is charging you points they are more of a hard money lender than a private money lender. Some banks and mortgage companies also charge points on their loans. Here’s an example. A private lender loans you 100k. You agree to pay them 10% on their money for the time period you borrow it and also agree to pay 1 point. Let’s say you use the cash for 1 full year and then pay off the private loan from revenue generated from the business, or a credit line you established.

For that one year you would pay the private lender 10% interest which = 10k plus 1 point which = 1k. So all told it would cost you 11k to borrow the money.

No Loan Origination Fees – Most loan brokers charge loan origination fees. This is basically a commission for doing the loan for you. Loan origination fees can range from 1% – 4% of the loan amount. By using a private lender you can avoid those fees.

No Lender Fees – Many lending companies charge lender fees. These are similar to loan origination fees but they are paid directly to the lender for processing and approving your loan. Again, why pay these fees if you can avoid them? Lender fees range from .5% to 2% of the loan amount.

No Credit Checks – Another great characteristic of private funds is the fact that nobody will check your credit. Weather you have good or bad credit nobody is going to pull your credit to determine you borrowing capacity.

However, when using private funds there will be no credit checks so you can leave all that behind.

Nothing Shows Up On Your Credit Report – Did you know that private money loans do not show up on your credit report? Yep, that’s right.

So if you do go to a regular bank to buy your own personal residence and have a million dollars in private loans on a business you own, it won’t show up.

Cheaper Than Bringing in Partners – When you buy a business with a partner, how much is your partner going to want?

Typically, they want a percentage of the profits. How much of the profits?

Usually between 25 & 50%! Ouch!!

That’s a lot of money for a partner’s cut; especially if you’re doing all of the work! Private lenders are much cheaper than partners.

In conclusion private money, is a very good form of financing.

The only negatives about private money are that you have to go find it because there aren’t people out there advertising that they are private money lenders.

You have to open your mouth, do some advertising and talk to people with money in order to find it.

The EASIEST way to raise private money when buying a business is from the seller and we will explore that in more detail in #8.

Business Financing Strategies

#2) Hard Money – What is Hard Money? In business the term commonly used is Factors and Factoring.

There are companies out there who make a business out of loaning money. These companies are similar to private money lenders in a few ways and different in other ways. We will explain those differences in this section.

 

They Set the Rules – Hard money is considered “hard money” because there are rules, regulations and limitations set by hard money lenders that you will not find from private money lenders.

Most hard money lenders have VERY, VERY strict guidelines on what they will finance. They set the rules and the investor/buyer and property must fall within these guidelines to qualify or else they simply will not loan the money out.

Points – Hard money lenders charge points to borrow their cash. I have seen points on a loan from 1 to 5. This means if borrow 100k from the hard money lender they will charge you between $1,000 and $5,000 dollars in addition to the interest charged.

Interest – Hard money lenders typically charge between 12-16% interest on the money they lend out. This is typically paid back as receivables are collected. They take a percentage of the money collected to pay the interest and part of the principal.

More Business Financing Strategies

#3) Lines of Credit –  What do I mean by lines of credit? Lines of credit can be secured or unsecured.

They can be attached as a lien against a property or they can be just an outstanding revolving amount of money like a credit card.

Every business should have, and work on building lines of credit.

There are companies out there that specialize in helping people and business owners alike establish lines of credit.

Benefits of Lines of Credit – Lines of credit can be used and re-used again and again. Once a borrower is approved for a line of credit it almost never goes away unless the borrower cancels the line of credit.        

 

#4) Banks and SBA Lending – Regular banks are a source for funds to buy anything. You can walk into any bank on most busy streets and get a regular bank loan. This is not some new radical concept.

SBA – Many Banks will want to limit their risk and only lend via SBA guarantees.

While SBA financing is done all of the time and it a terrific way to get money to purchase a business, it is a paperwork calamity, and can take anywhere from 3 to 9 months.

More Business Financing Strategies

#5) Partners – The concept of bringing in Partners is pretty simple to understand. If you do not have the credit, private money, hard money or cash you probably know someone who does.

If you find a business deal that you can’t pass up and don’t have the resources, find someone who does and give them a cut of the profit.

You found the deal and know how to fix it up and sell it for a profit. Without the financing the deal will not get done. You need a partner and a partner needs you. You found the deal. He has the cash or credit to get it done.

So what’s a reasonable split? It’s all negotiable and totally up to you.

Just make sure to put it in writing and make sure the salary you take out of the business DOES NOT count as profit. Get paid for your work and effort – split the leftovers with your partner.

 

#6) Credit Cards – This is one I would completely stay away from. Credit cards are way too easy to abuse. They are also typically have way too small of an available balance to be of any real use to you. Even if you have 20-40k available credit on your card what good long term is that going to do for you? You are going to pay between 10-29% interest on those.

My advice would be to simply keep the credit cards in your pocket. And use them for day to day operating costs when needed.

 

#7) Your Own CASH – Cash is king right?
If you have cash to invest, and you see a good business, use it.

Nothing is better than better than being in 100% total and complete control.

True Freedom comes from not having to answer to anyone.

 

#8) Subject to Financing – The concept of buying a business with subject to the existing loans is a great way to finance purchase. Buy the business and leave the existing financing in place.

 

#9) Equity Exchanging – This is getting into very “Creative” financing strategies and I wanted to end this presentation with it because it will get you
“Thinking-Outside-Of-The-Box”

Whatever you own, you can use as value and trade for something else. You can trade cars, boats, planes, lots and land, artwork, jewelry and paperclips!

There is a true story of a guy named Kyle MacDonald who traded one red paperclip for a house. He started with one red paperclip on July 12, 2005 and 14 trades later, on July 12, 2006, he traded with the Town of Kipling Saskatchewan for a house!

http://oneredpaperclip.blogspot.com/2010/08/red-paperclip-story.html

Business Financing Strategies

 

January 30, 2018

The 7 Stages of a Business Lifecycle and What it Means To a Business Investor

The Business Lifecycle

Every business has a business lifecycle, and every business goes through a number of changes during the course of its lifetime, and business owners should make sure they understand exactly where they are in the cycle so they can prepare for the next stage.

In this brief report, I’m going to do my best to identify each stage of the business cycle from a 30,000ft view so business owners can identify where they arena the cycle and take action, and people interested in buying a business will have a better idea of where to look and why.

The 7 Stages:

  1. Start-Up
  2. Growth
  3. Growth Slowdown
  4. Sustaining
  5. Decline
  6. Decay
  7. Failure

All Businesses have a lifecycle commonly referred to as the Business Stage.

  1. Start Up

The seed stage of your business life cycle is when your business is just a thought or an idea. This is the very conception or birth of a new business.

There are numerous challenges for a business start-up.

  • Money is tight and resources are thin
  • Marketing is new and not established
  • Customers have not yet been identified
  • Front end customer service systems are not yet established
  • Back end product delivery systems might be a bit hap-hazard

At this stage of the business the owner is way over-worked and under-paid.

You need to really watch your pennies because this is where most start-ups fail, and the number one reason is they run out of money to operate.

  1. Growth Stage

Your business is born and the doors are open. You’re selling your products and services to customers.

The phone is ringing, you are having fun and are very excited about the future.

Money is tight because you are building inventory and hiring employees, but you don’t mind because you are doing what you set out to do and are living the dream!

The Future Looks Bright!

  1. Growth Slowdown Stage

Your business has made it through the infancy stage.
Revenues and customers are increasing as well as other opportunities.

You’re making money and find yourself somewhat mired in the mud of day to day operations. Dealing with employees and customers.

The fun and exciting part is beginning to wain because you are busy working “in” the business more and more.

You begin to realize this thing you created is growing bigger than you can effectively handle and you realize you can’t do it all.

This is the optimum time for a business owner to sell – This where the business will sell for the most amount of money because it has a solid growth record. It is also at the point that it isn’t fun anymore foe the owner.

If nothing else, it at this stage of the business cycle that the owner should begin planning an exit strategy.

  1. Sustaining Stage

Your business has now matured into a thriving company with a place in the market and loyal customers. Sales growth is not explosive but manageable. Business life has become more routine.

This is where you begin to rest on your laurels and begin to back off a bit. You feel you have worked hard to get where you are and deserve a bit of time to coast. Most business owners at this stage begin to get bored and neglect to pay attention to the competition.

This is where most business should begin thinking of selling – right when the begin to get bored with the business. The owner has reached their peter principal  and stop growing.

This is where the business owner should do one of two things –

  • SELL: This is the big opportunity for your business to cash in on all the effort and years of hard work. before its too late, or
  • Begin expanding through acquiring the competition – especially the competitors that have entered stage 6 or 7.
  1. Decline Stage
    This where the business owner has mentally checked out.

They might be bored to tears with the business and lost interest, turned it over to management, or simply lost focus.

Competition might have taken a bite out of the business, or changes in the economy or market conditions. All of which can decrease sales and profits.

Unfortunately for most companies, this is where the owner has to take immediate and drastic action to get the business back on track, but they do the exact opposite.

Instead of investing in the business and taking back the reigns, they make cuts to marketing and advertising, they stop investing in the business and begin cutting back on everything.
Unfortunately for the owner, they are in denial about just about everything pertaining to the business and they tend to look the other way.

They are unknowingly becoming “Don’t-Wanters” in the business.

(This is where I teach my students and clients to begin looking for business to buy so they can get a good deal and turn things around quickly before its too late.)

  1. Decay Stage

Denial has set in completely and it shows – the more revenue drops, the more the cutbacks.

This is about the time when most business owners snap out of it and decide to sell the business and get out.

Unfortunately, it is way late in the game for them to get a good price for the business because previous sales show a negative trend and buyers are quite hesitant to buy a declining business.

This is the last chance for the business owner to get honest with themselves and face reality. It is the last chance for them to either get with it and grow revenue, or get out.

If they don’t, Stage 7 is imminent.

It is also the best time for a sophisticated business buyer to buy a business at a fire-sale price and get the seller to finance the purchase.

This is where I like to look for business’s because they can be easily turned around because they still have a good book of what I call ** “Off-Balance-Sheet Assets”, which in my mind are perhaps the most overlooked and valuable part of any business, and nobody knows about them!

“In all my years as an entrepreneur, I never knew about them until about 5 years ago, and I have only met ONE other person who knows what they are. This person bought a company out of Bankruptcy for pennies on the dollar because if the “off-balance-sheet asset list and sold the company 10 years later for tens of millions of dollars!”

  1. Failure Stage

Game over – the business owner puts a lock on the door and liquidates inventory is a going to of business sale. All those years of hard work and sacrifice are down the drain. Dreams shattered, employees lives turned upside down, jobs lost, etc.

According to business broker statistics, only 24% of business sell, leaving about 76% of business listed for sale that end up closing their doors with a going out of business sale with shattered dreams.

Understanding where your business fits on the life cycle will help you foresee upcoming challenges and make the best business decisions.        Whether your business is a glowing success or a dismal failure depends on your ability to adapt to its changing life cycles.

There you have it ….. the 7 stages of a business cycle.

I hope you found it interesting reading and you can use some or all of it in you entrepreneurial quest.

** Want to learn more about this little secret?
Contact me

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