- Why we’re so damn busy working we can’t make any money
- 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
What about flipping a small business compared to real estate?
By KC Truby
Fixing or flipping a small business is much easier than real estate for a variety of profitable reasons.
- If you pick the right deal you get immediate cash flow.
- Even most bad businesses can be moved to profit in 60 to 90 days
- You are not competing with every Tom, Dick and Harry that owns a hammer and a paint brush and stayed up late last night watching Home & Garden TV.
- In about 80% of the cases the owner will carry back some or all of the financing
- In a business the BIG NEWS is that you control about 80% of what happens. Your results are not controlled by the market or government loan rates.
A business is under your control. You can’t say that about the real estate market. No other investment gives you so much power to manage the outcome. In business flipping you are the master of your destiny.
The opportunities are everywhere – yet very few people can see them…
Every year over 2,000,000 businesses owners just walk away from their life’s dreams. 85,000 are forced to file bankruptcy and 88% of what’s left are junk that is not worth looking at. But several hundred thousand have sales and the old saying goes ‘If you have sales, everything else is a detail.” Those 200,000 are the companies that we want to hear about.
When a company has sales but is managed poorly you can quickly fix the problems the existing owners don’t understand or have the fortitude to make the hard decisions on.
All you need is a methodical process to identify the obvious and a check list process to quickly take action on your findings. You may even discover that you are making some of the exact same mistakes in your current business that your targeted acquisition is making, once you start going over the check list. This will probably lead you to start running your own operation a whole lot better.
Will you get rich?
…Since people who grew up in the accounting business are so conservative by nature I will not promise you that you’ll make millions over night or something foolish like that. But I do believe (and have proven in my own life) that this is an amazing opportunity for any entrepreneur, business owner, professional or sales person to generate real wealth on a full or part time basis.
Yes, you can make millions, no it will not happen overnight but it’s a lot of fun to help people save their jobs by saving their company.
Attend one of our upcoming seminars on finding, fixing and selling a business to find out how easy this is.
Bottom Line: Over my life time I’ve had great luck with Real Estate and the returns have been in the six figure range on every deal we’ve done. However, I find the small business like the home health care company we got for $5,000 and is now worth $450,000 to $550,000 in under 14 months – a much better return on my time and energy.