As I write this, it’s the 4th of July and I am on a wonderful lake in NH with family and friends. I’ve heard so many people in this lake community complain about having to head back to work tomorrow. They’ve complained about their jobs, their employers and the lack of control they have over their lives and schedules.
If you’re one of those people that are fed up with travel for work, lack of time with family and friends and fed up of making other people rich without the recognition that you deserve, consider declaring YOUR independence! How?
By entering the world of business ownership. Becoming an entrepreneur doesn’t have to be complicated or hard. You don’t have to have some unique, world altering idea. You don’t have to have millions saved if you enter the game the smart way.
Acquiring a Business in 2016
Entering the smart way means acquiring a business that is already up and running. It means acquiring a business that has history, reputation and cash flow. But, Fran, I can’t do that. I have kids in college and I need an income. I get it.
But you CAN have what you want. I’m talking about buying a business where someone has paved the way before you. It has Seller’s Discretionary Earnings and a solid, provable history of sales. If you’re saying to yourself, “But that will cost a fortune in cash up front,” you’re wrong.
Many manufacturing businesses for instance can be purchased with as little as 5-10% down if some Seller financing and cash flow are included. If you’re worried about how much you can make in the first year, consider a sampling of businesses currently on the market and what the Seller has pulled out in salary and benefits in the last few years:
Business List Price Cash Flow
- $825,000 – $233,270
- $1,250,000 – $280,703
- $1,495,000 – $966,082
- $3,100,000 – $575,182
- $4,350,000 – $926,984
Notice that the price to earnings ratio on these is wildly different. Basically the stronger the company’s history and the less risk in acquiring it, the higher the ratio will be. The cash flows listed on these particular companies have been steady for years.
Of course there are no guarantees, but a buyer can reasonably assume that they will have about the same amount of cash available to them for their salary, benefits and debt service. Now calculate a 5-10% deposit on the list prices shown in comparison to the cash benefit you would receive in the first year.
Are you saying WOW yet? It might be possible for YOU to declare your independence and dive into business ownership. I understand it’s not for everyone. But some of you reading this are great managers who know what it takes to run a successful business. You’ve been doing it for others for years, while they get the owner benefits.
Is it your time? It’s not too late to declare your independence before the end of 2016. Imagine starting the New Year working for the benefit of yourself rather than someone else. Declare your Independence from corporate America – call us today to find out how much business you can buy!