The worst mistake you can make when buying a business
Well, you’ve spent several months looking for a business to buy.
You have your financing ready.
The numbers look great.
Everything seems profitable, and everything is perfect.
Except for one thing.
And that is…unless you’ve bought a business with a system in place that literally “works itself”, whether you show up every day or not, all you’ve done is bought yourself a glorified job.
A job where you will probably earn (if you measure your income per hour) less than most of your employees.
A job that is likely to cause you an enormous amount of stress, anxiety, and pressure every day of the week, including weekends.
Why am I saying this?
Because that’s what often happens when someone buys a business without the proper systems already in place.
You see, the key to buying a business is to make sure you buy one that will stand on its own whether you’re there or not.
I like the way bestselling author Robert Kiyosaki explains it in his book, “Rich Dad Poor Dad.”
He defines the ideal business as one where you can leave for a year (or more) and come back to find your business stronger than when you left.
In other words, the “machine” that runs your business must be so tuned that its presence is almost like interference. Where you actually make more money when you play golf or have fun with your kids at Disney Land.
This of course raises the question of how exactly you find businesses like that, especially for sale.
Fortunately, the answer is quite simple:
And that’s not even bothering to look at a business that isn’t worth at least a million dollars.
In fact, the bigger the business, the better.
1.) First of all, if you use private investors, it is easier to obtain financing for this type of business.
Quite frankly, you’ll have a MUCH easier time getting funding from investors (as opposed to a bank, for example) because they’re always looking for good deals.
And if you can show them that the business makes sense, many investors will join you in no time.
2.) And secondly, if you have a large multi-million dollar business, you will have more than enough money to pay an experienced manager to “run” everything for you.
In fact, if you find a good business running at full capacity, where everything has been profitable for at least five years in a row, you should do whatever it takes to keep the current management there and stay as far away from the office as possible. possible.
After all, if the manager has been running things smoothly and profitably without you before, then there’s no reason why he shouldn’t keep running smoothly and profitably whether you show up or not.
Anyway, the bottom line is this:
The worst mistake you can make when buying a business is buying one that depends on your presence.
If you really want to enjoy owning a business (and basically cashing a check for a living), then buy a business that has a streamlined system that works and grows on its own, without you having to be there.