Thought you might be interested in something cool that I recently participated it?
I was recently interviewed by Joel Erway on his podcast Experts Unleashed which just went live today!
And, we talked about some really cool things that I don’t normally share.
During the interview we touched on
✅Journey into entrepreneurship and the art of dealmaking; ✅A “poorly” done deal and the risk of buying and selling business; ✅Break even point; ✅The most important elements of selling a business; ✅What should someone in the coaching or consulting space think of prior to taking steps towards selling? ✅Timeline for selling a business; ✅Is there such a thing as “too niche” or too small to sell? ✅What a sellable business looks like; ✅Listen to the market; ✅Positioning your business.
When someone makes you the right offer… you take it.
I know this may come as a surprise to some of you.
But I haven’t been totally excited about my business for quite some time:
I get nervous on camera sometimes.
The YouTube trolls keep me up at night.
It’s a struggle to hang out with the kids everyday after school and get involved in all their activities and projects.
Lately, when I see people stuck in morning traffic headed to their office, I feel kinda jealous. (even though I’m enjoying my casual morning walk with coffee after leaving the kids at the crosswalk near the school.)
So, it was almost a relief when newly-minted Business Buyer Advantagegraduate Hector Cortez called me up and made a stunning proposal--
“David, I so thoroughly enjoyed your online training. I feel that I now understand this process and I have the confidence to move forward and execute my first business purchase without the fear that I’ll get into a bad deal.
I can’t think of a more exciting idea than helping other people move forward on this same path.
So, here’s my proposal… I’d like to buy your business David. What do you say?”
I didn’t know where to begin.
It was like Hector had reached out to me on the very day that I was thinking about taking the leap to buy a package of plain brown paper bags.
I had been toying with the idea of packing my lunch in one in order to get that ‘normal workplace’ feel here at my cozy home office with a great view of the backyard.
Now, usually, I’d advise a seller to take their time and make a proper presentation to a buyer and spend time getting documents ready, etc.
In fact, you can learn all the things that a business seller should do and even enjoy the material in a half-day online training program over at www.HowToSellMyOwnBusiness.com
In this case, I was so excited to sell this business that I just blurted out a number--
ONE MILLION DOLLARS!.. and then I put my pinky finger up to my mouth in homage to Dr. Evil.
Hector was equally moved by passion and emotion. He accepted... as long as I agreed to his terms.
I’m going to have to receive my money over quite a long period of time. Some of it is subject to certain earnout conditions and I have to continue to host some of the videos for the foreseeable future.
I’m also going to continue to moderate and help the members of the online group coaching program for business buyers; Business Buyer Adventure.
I think that’s great because everyone there has so much fun working together to push each other to achieve and I get to share so much more valuable information and strategies that just wouldn’t fit into the Business Buyer Advantage training.
What would be someone’s motivation for wanting to buy several businesses quickly and do I actually teach a special method that is truly my own?
I think I know where this chap has been.
His question has been framed by the marketing of someone who promises quick wealth through a special business acquisition method that they promise can be repeated many times over by anyone regardless of setbacks or track record.
Let’s break this down and do some critical thinking.
One of the popular myths that I’ve seen used to lure people into expensively-priced business buyer programs has been the idea that there are a lot of businesses for sale that are really profitable and they need new owners.
Then the idea that there are not enough people out there with the knowledge of HOW to buy them is tossed into the mix.
Does that make sense?
People have been buying and selling businesses for a long time. There is a whole industry built up around it.
It’s true that there is a lot of ignorance, bad advice, etc. out there but the way to buy a business has pretty much been hammered out with some variations.
That’s what I teach people in my programs. How the deals to buy SMEs are actually done.
Many people are surprised. Most students learn a lot of new information.
But for every buyer who goes through my program, there are already many in the marketplace with similar knowledge.
A lack of buyers understanding the HOW is certainly not what keeps 80% of small businesses listed for sale from being purchased.
Don’t forget that businesses listed for sale are only a small portion of those that go up for sale since most sellers normally want to avoid business brokers and their commission charges.
Think about that.
If you owned a great business and you needed to get out, you’d likely try to find a buyer on your own, wouldn’t you?
That’s exactly what happens.
Many of the businesses listed for sale don’t sell because they suck.
They don’t earn enough money, or the sellers are asking so much that a buyer can’t earn any return on his investment.
I think this is where the idea of buying several businesses comes from.
The notion of owning a group of businesses is exciting and if you can’t find one that earns enough you just keep buying more.
Like a guy who invests in real estate and buys himself several dozen duplexes over the years instead of one big 50-unit building.
The strategy is also one that is employed by private equity groups who have teams of professional business investors and analysts and who have millions of dollars at their disposal.
Is that you?
Would it not be easier to simply buy and manage one business that met all of your investing criteria and allowed you to achieve your personal financial goals?
It sounds simpler to me.
Starting with a plan to buy several businesses assumes that the first one will be in some way deficient.
Why would you plan to buy a business like that?
So, the HOW of buying a business really needs to be tied together with the HOW of finding a business BEFORE it goes up for sale.
AND, we need to be looking for the right one.
These are the things that I cover in Business Buyer Advantage and my Business Buyer Adventure coaching group.
You know what else?
Signing up for any of this will not allow a loser to instantly become a big-wheel business tycoon.
Before anyone can get into the game of buying a successful business, they need to win the game in their own head.
That’s something I can’t help you with.
Don’t believe that someone can fix all your problems with a few thousand dollars of online training.
If your self-image is already one of a successful businessperson and you want to buy a profitable business, then I can help you with strategy and knowledge.