Hey folks, there are a lot of good businesses for sale out there from people retiring, looking to move, or relocate. Real estate is great, tech is amazing, stocks and bonds are necessary, but you can also create passive income by owning businesses that you don’t run! Take a look at athletes and entertainers, especially the most successful ones, and tell me if they are waiting for their financial advisors to help them grow their wealth and create passive income? OWNERSHIP IS THE KEY! You can own small businesses just like you can own real estate; boring ones, profitable ones and even cool ones.
Here are 7 quick steps to acquiring them. Hit me up for more details if you want to buy one, and I’ll invite you to a workshop.
1. What type of small business is interesting and/or critical to you? ⠀⠀⠀⠀⠀⠀⠀⠀⠀
2. Visit broker websites that match buyers with sellers. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
3. Do the math in the cost, profit, when you recoup and what your annual income and ROI will be.⠀⠀⠀⠀⠀
4. Start the diligence process. Hire an expert, partner with one, or use your team ⠀⠀⠀⠀⠀⠀⠀⠀⠀
5. Pay cash or get a SBA loan. Sometimes (very rarely) you can buy with no cash if you get the seller to roll equity into the deal, do a seller note etc. ⠀⠀⠀⠀⠀⠀⠀⠀⠀
6. Negotiate price and structure based on your due diligence ⠀⠀⠀⠀⠀⠀⠀⠀⠀
7. Decide which parts of the management team you keep, structure deals to keep them involved. Figure out how you can bring strategic value based on your brand and relationships.