Think big. You’re a half million dollar business, and your direct competitor is a $5 million business. So what? Go acquire them. If you’ve got good credit and your business is stable, and their business is stable, the opportunity to do something like that is there, and the SBA allows it with no money down. Now, let’s talk about businesses that aren’t your direct competitors. Let’s talk about your supply chain. Look up and down your supply chain. Who do you pay money to and who pays money to you? Any of those should be of interest to you. Look at and say, Can I acquire them? So let’s talk about our electrician guy. And he has a local electrical parts distributor that he buys all of his electrical stuff for to do his electrical jobs. And he’s a big customer of theirs. Are they potentially available for acquisition? What if he buys the company that he buys all his stuff from? What does that do to his profit margins? What does that do to his business? Now he’s selling to himself. Okay? Now, you can’t do that with no money out of your pocket, because the SBA doesn’t look like that as an expansion, but you can do that for as little as 10% down.
So if that’s a $5 million business, you might be able to get that business for $500,000 down. Where can you get that $500,000? You can borrow against your current business. People borrow against their 401 (K) and retirements. People borrow against their home equity, or they get a third party to come in and provide that down payment and even the seller might provide that down payment. So it’s conceivable that you could do a deal like that with very little money out of your pocket. And again, now you own your business. You own the business that is the supplier of your business and then look down the chain and say, who do I sell to that I could also acquire? Maybe that business sells to a general contractor that specializes in some certain type of construction. Maybe you buy the general contractor. So now you own the electrical supply business, you own the electrical business and you own the general contracting business that’s using all those electrical services and you own every piece of the supply chain. That’s how an empire is built and it can be done step by step from almost nothing if you do it right.
This is an excerpt from the MarketingBoost podcast with Marco Torres "Capt Marco" . The entire show is FULL of great information about selling businesses, growing businesses and so much more!
Listen to the entire episode here: https://podcasters.spotify.com/pod/show/marco-torres97/episodes/Maximizing-Your-Business-Value-Secrets-to-Selling-Success–Marty-Fahncke-e2b37k1
Or watch it here: https://youtu.be/cwIam9K61y0
To learn more about Marty Fahncke, Acquisitions, and Westbound Road visit our website: https://www.westboundroad.com