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

3 critical reasons you should own 2 or more companies.

By on July 14, 2014
own multiple companies

Buying multiple companies is a fast track to capital gains, however we often worry about the task of running more than one business – especially one in distress.

Well the truth is….

Our biggest obstacle in creating wealth is that we ‘work on the wrong thing’ about 80% of the time we are at the office or shop.

 

If you take a yellow pad and write down every time you do something this week such as answer the phone, run to the bank, order supplies or sign paychecks, you will be surprised on Friday at 6PM at how little you did that actually made your business money.

 

On average our business pays us to do about 3 things that can be boiled down to…

  1. Sell or buy a good client.
  2. Build on an existing relationship with a vendor, employee or client.
  3. Innovate how you deliver your services and write it down so your staff know how to do it.

Yet, on average a business owner only spends about 8 hours in any given week on what you are really getting paid to do.

 

What we discovered is that when we bought a second business I ran out of time to do little things and was forced to hire a manager to take care of the details.   I also discovered that I was now forced to write down how I wanted things done or the manager would be lost.

 

In very short order we realized that not having time to do the little things, pushed us into the habit of working on the 3 things that my company actually paid me to do.   It quickly became obvious that I could run company “A” with the same 8 hours of high productivity work, and then dedicate another 8 hours to company “B.”

 

Our fear of course is in the cost and chaos of hiring a manager to take our place. In many cases the owner things that all the customers HAVE to talk to them or that they are the only ones who understand how to get things done.

 

These self-generated negative beliefs are harmful to your long term profit and hurt your ability to create wealth without working yourself to death. The secret to overcoming these self-imposed limitations is to set a date and STOP working in your business. That date could be next Monday after you’ve done the ‘what I do list.’

 

Once you have decided that you want to grow, the easiest thing is to hire a manager. We like energetic smart young people who will work like crazy for a piece of the profit, along with a low base salary.

 

If your time is worth $100 an hour then you can easily afford to hire someone at $15 to $25 and get out of the office.

 

It is true that they will only do about 80% of what you can do, and you will have to manage them at least 2 hours a day for the first year. But could you imagine what you could do in your firm if you stopped spending so much time at the office. If you spent your day at clients or meeting potential clients – or better yet, buying out your competition. Your business would probably double in the next 12 months.

 

 

 

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.

Leave a Reply

Your email address will not be published. Required fields are marked *