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- Did you work on the right thing today?
- 3 Critical Rules for the day after you buy a company – to make sure you don’t miss a loan payment
- What about flipping a small business compared to real estate?
- Managing your Business in 2 Hours
- How we buy companies for under $5,000
Can you create $400,000 to $600,000 in net worth by ‘Rolling Up’ your weak competitors?
Is this right for you?
By: KC Truby
We buy two or three companies a year and while I can make no claims about your success, I will share with you that our personal net worth grew between $450,000 and $600,000 (who knows the exact amount until you sell) in 2013 and this year looks like it will be just as good.
In another year or two, we will start adding a zero to the size of our deals and the results will grow by 10 fold.
The most exciting discovery about buying distressed companies is that most deals require little or no upfront cash. The only skill you need is a basic love of business and an understanding of how to read a profit and loss statement. That is a learnable skill by the way.
If you have tried creating wealth in house flipping or some web site magic, you already know that everybody and his or her brother is competing with you. That makes success difficult to say the least.
Our favorite deal is the ‘roll up’
Once we get into a category, we fix the company so it runs like clockwork. Then we start calling on all of our competitors. We simply ask if they would like to have lunch and talk about cross referrals and joint ventures.
What I am looking for is the struggling businessperson who is about to go under. Once we find the right deal, we only want three assets in most cases. Generally, we do not want the location or physical property of the failing company. Those assets come with overhead and I do not need more of that.
The assets we want are ‘off balance sheet’ assets that include the customer list, the employee roster and the operations manual that includes referral sources. All of that fits on a CD. However, with the customer list we can quickly get on the phone and move 50% to 75% over to our firm. If they have good employees who know the industry, we want them working for us.
Best of all we get these kind of deals for ‘walk away’ money. That means on average $5,000. This is the fastest way to get good customers and good employees we have ever found.
We do a two-day seminar where our Buy-Fix-Sell club members get together to go over how we are doing this. You will be in the room with dozens of others who are doing this kind of deal right now. Come to this meeting and learn how we pull it off. You will have your best year ever.