The Less Risky Way to Double Your Business
#acquisitions #sellabusiness #growyourbusiness
This video is an excerpt from the “Grow Your Damn Business” Podcast with Scott Goodrich. The episode is entitled “Insights on Crafting Marketable and Resilient Businesses with Marty Fahncke”, and you just might learn a thing or two if you check out the full episode at the links below…
Listen: https://player.captivate.fm/episode/587125a1-cdad-4254-8025-cec2326a2643
Watch: https://www.youtube.com/watch?v=Uwg3tdfAIYQ
Let’s say you’re a two million dollar business doing two million dollars a year and you want to double your business. I want to be a four million dollar business next year. The number one way that most business owners would do that is to say, “Okay. I’m doing two million now. I want to do four million next year.” What does that mean? That means I have to go out and sell twice as much stuff
Scott Goodrich
Sure. Yeah.
Marty M. Fahncke
Whether it’s products or services or goods or whatever, you have to go sell twice as much stuff. That’s the logical way to do it. And for many years, that was the way I did it too. And I still enjoy the challenge of raising revenues and increasing sales. But here’s what most business owners don’t think about. Do you want to go out and try and sell more stuff, which means hiring more people, spending more Money on ads, doing campaigns that may not work, taking a lot of risk, and doing things that may or may not happen, or what if you go out and find another business just like yours that’s also doing two million dollars and you acquire them. You put the two together. And now boom, you have a four million dollar business. And you already know that it’s working because it’s proven. It’s got a track record of years of history. So the risk is eliminated, your business is that four million dollars Growth or the two to four million, it’s going to be more profitable because you’re going to have economies of scale if the two businesses both have bookkeepers and the two businesses both have a head of sales and ahead of you know dispatchers or whatever you can consolidate on that. So you’re going to make that much more profitable. And the coolest thing is if you do it right, here’s what most business owners think. “Okay. I’m at a two million dollar business. I want to make it a four million dollar business.” If they’re progressive enough to think outside the box that they don’t just have to go sell two million dollars worth more stuff they think, “Well, maybe I’ll buy a $2 million business. Most of them think, well, I would need $2 million to do that.” No. T, the reality is you may not need a single penny to do that, or at most you might need 10%. So would it be worth it to you to put $200,000 down to double your business and acquire that $2 million business, which by the way, at $2 million business, it might be a $400,000 profit. You pay back your 200 grand in six months, okay.
Or if it’s done, we have some strategies that literally it would cost you not one single penny out of your pocket, and boom, you double your business, no risk, no cost. Why wouldn’t you do that? That’s something else we help our clients do.
To learn more about Marty Fahncke, Business Acquisitions, and Westbound Road visit our website: https://www.westboundroad.com
