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

Can you buy a business into failure?

By on June 28, 2014

Can you buy a business into failure?

by KC Truby

Well yes, it happened to me. In 1981 I opened too many office furniture stores and it killed us. We were selling used gray desks and file cabinets that I trucked out to Wyoming from New York City.   We sold the ‘junk’ to oil field companies in the northern Rockies during the 1976 to 1981 oil boom. Of course I was buying every business I could get my hands on because the more distribution we had the more semi loads of desks I could sell.

Now luckily it was not buying into a hornet’s nest that got us. It was the task of running so many locations from memory and hard work.

What I did not realize was that each new store geometrically doubled my tasks as the manager. I was only 26 and we were making $60,000 a month net profit so I did not believe I was capable of making any mistakes. Thus, I did not listen to my CPA when he warned me about the mental tasks that were going to haunt me as we grew. So yes, you can kill yourself with fast growth and multiple locations. But take the chance and be smarter than me. I grew my company but did not grow myself to match it. If you start thinking like a CEO rather than a local merchant it will become easier. Each time you buy a business – stop buying until you have a great manager in place. Someone who has a vested interest in your success.

Another mistake I made when I set out to buy a business was to remember what the company was paying me for.   I did not think in terms of a CEO, but kept my small merchant mind set, too long.

Today I only want to do CEO work, no more bookkeeping, advertising plans or employee hiring for me.   I focus on 3 tasks, ONLY.

They are….

1. Picking up one GRADE “A” client that will buy wholesale or bulk outside of the retail store front. Focus on your top 20% opportunities, the staff can handle the rest.

2. Building relationships with your employees so they understand what you expect. Do the same with vendors – ask them for advice and listen. Especially your accountant.

3. WRITE SYSTEMS – like Gerbers Emyth. Get it in writing and hold your team accountable for following your process or fixing your process. If I had known these rules I would have built up and sold in 1982 and probably been able to retire at age 26 instead of standing in front of the bankruptcy judge a year later.

 

PS I learned more from my 2 business failures in my life about making money than I ever got out of the 19 that we built and sold for capital gains.

PSS   Be sure to see our 200 point outline on how we find, fix and flip.  Click here to the report now.

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.

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