How to Decrease Risk and Increase Opportunities With Your Acquisition Efforts
In this video:
Paris Vega
I guess that there’s been, I think, one experience where I got ownership of a business by saying, “Hey, I’ll, you know, apply my skills. I’ve got these skills. I’ll apply these skills and I’ll spend a little bit of Money on advertising and let’s exchange ownership”
Marty M. Fahncke
Yep, that’s called an “#earn-in” and it’s very common. It’s a very common way of gaining, and let’s be clear what you just said and what I’ve talked about the companies. #acquisitions doesn’t always mean a hundred percent of a business. I don’t always want to own all of the business. Sometimes, I only want to own a percentage of it, for various reasons: risk management, time, things like that. and so If you could own, If you could own get on 100% a hundred percent of a million dollar business, or you could own 10% of 10, million dollar businesses, your equity is the same, but your opportunity skyrockets.
Paris Vega
Gosh, and you’re not having to manage because you’re not the 100% responsible. So there’s other people. Yeah.
Marty M. Fahncke
Right, so that’s an opportunity that, you know, you can build a portfolio of cash flowing, profitable businesses that are providing you consistent income as well as huge paychecks when they’re acquired and you don’t necessarily have to be trying to run all these businesses.
Paris Vega
Yeah. Yeah, that’s what I’ve fallen into at different times is trying to start so many projects or have so many things that you’re trying to get off the ground that it just, you just get spread so thin that everything’s just growing really slow. And I think that’s a really cool approach where if you’re just, you know, partial ownership in and things that are already, you know, they already have traction.
Marty M. Fahncke
It’s much less risk too! Start new stuff. I mean, starting anything new, nine out of 10 of them fail, right? But Investing in existing things that are already proven, nine out of 10 of them succeed.
Acquiring a business doesn’t ALWAYS have to mean acquiring 100% of a business. Take 2 minutes to watch this video called “How to Decrease Risk, and Increase Opportunities with your Acquisition Efforts” to learn about earn-ins, minority equity, spreading risk, and how to “own” dozens of businesses without having to “run” any of them!
Let me know your thoughts in the comments below, what is the most creative or successful way YOU have found to acquire minority stakes in profitable businesses?
This is an excerpt from the First Customers Podcast with Paris Vega. The First Customers podcast is on a mission to learn how entrepreneurs, founders, CEOs, and sales & marketing experts found their very first customers.
Check out the full episode at the links below…
View here:
Listen here:
Apple https://podcasts.apple.com/us/podcast/54-marty-m-fahnckes-billion-dollar-journey/id1487739303?i=1000644059559
Spotify: https://podcasters.spotify.com/pod/show/first-customers/episodes/54-Marty-M–Fahnckes-Billion-Dollar-Journey-e2farkk
To learn more about Marty Fahncke, Business Acquisitions, and Westbound Road visit our website: https://www.westboundroad.com
