How to buy and turn around a
distressed business or 'roll-up' competitors

On this site you’ll read real life stories of how 23 entrepreneurs find, fix and then sell small companies on the edge of failure. Sometimes we buy our weak competitors in a roll-up and get new clients cheaper by acquisition then organic growth. If you like these concepts, come to the next workshop. Learn how we...

✓  Find distressed companies that are worth saving for capital gains
✓  "Roll-up" your competitors for rapid growth with little cash or risk  
✓  Why buying a distressed business is the BEST way to do a start up

From KC Truby Lonesome Cowboy Publishing Inc. 301 Thelma Drive #426, Casper WY 82609 (760) 207-6385

Why 96 out of 100 start ups NEVER get past $1,000,000 in annual sales.

By on May 30, 2014

Why 96 out of 100 start ups NEVER get past $1,000,000 in annual sales.

By: KC Truby

When you start a business at zero and grow to $200,000 or $250,000 in annual revenue you can run your company with a good memory on what customers want done, daily sales reports and a simple accounting plan we call COH (calling the bank and asking what your Cash-On-Hand is.)

You do not need a business plan as you have it all in your head. You do not need written processes because you are doing all the work yourself. You do not need cost accounting, as you are the only one spending money. As long as you are willing to stay small enough to remember everything and do everything you have a good model.

On rare occasion, a business owner can generate amazing success with little skill, capital or planning. Recently I talked to the owner of a small one location Pizza restaurant in New Jersey. He reported sales of $20,000+ a week and a net income of $600,000 per year. He had no business plan, no business training, no debt, no partners, no financial controls to speak of and no ds to grow. He worked 7 days a week at 10-12 hours a day and touched every Pizza going out and every dollar coming in. He was happy and he could remember everything that needed to be done. However, the Pizza guy getting to $1,000,000 was a gigantic exception.

By the way, we are happy for the Pizza guy too, but the norm for someone running a business this way is failure and we believe failure is plum nuts.

Here is why most of us fail…

Almost every small business starts out with a great idea, good services or products and an enthusiastic owner that is dedicated to prosperity.

However, if you grow past some point of personal complexity – where the entrepreneur can no longer keep all the details in memory or work any more hours without trouble at home you stagnate. Just like in nature the day we stop growing we start dying.

So what is the answer to going past $1,000,000

If you want to grow past your personal ceiling of complexity – you must do three things in your business.

  1. Have a strategic plan that describes why you are better than the competitor and how you tell that story to others. We do this with the ‘lean canvas.’
  2. You have a tactical business management system (flow chart your business) that allows you to standardize your business so every decision or problem does not end up back on your desk.
  3. Hire a manager / partner that you can turn over the daily functions to. Allowing you to grow the company.

When do you take these 3 steps? From our experiences of watching thousands of small business clients in 44 years of accounting – the number is around $5,000 a week in sales. However, you may want to use the ‘lean canvas’ work sheet as soon as possible.

In our business model, we buy our competitors that don’t know these 3 rules or anything about the ceiling of complexity. We can generally get them cheap, install our 3 systems and capture the capital gains fairly easily. Attend our next 2 day conference if you want to see how my wife and I added $200,000 of value to 5 different business over the last 2 years.


About KC Truby

From their ranch in Wyoming, KC and his wife Linnea have bought or started 21 companies as a side line to their accounting business leading them into M&A as a full time business in 2012. These companies are located all over the Western Rocky Mountains, London and India. Since 1969 through their accounting and training companies, KC has taught 18,000 business owners how to improve cash flow and find more customers by installing standardized systems in their small business. Since 1989 KC has presented over 1,000 seminars and training classes to the small business owner.

One Comment

  1. Robert

    June 27, 2014 at 7:47 pm

    Where do you find the best managers?

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