Today I’m going to tell you about the deal that started my addiction to investing in small businesses.
and I have 3 Powerful business insights that are priceless for anyone who even considers entrepreneurship spread through this video including how I was able to do this deal with almost no money down so hold on until the very end.
By the way, I would really appreciate it if you press the like button beneath the video so that youtube will show this video to more people hopefully inspiring them as well.
On the day this deal was done it was already after I sold my first business and was running another 7 figure business I’ve started. But, It was the first time I Increased my Net worth so quickly and relatively effortlessly.
So on that day I was heading to a big event almost everyone in the industry of that business was planned to attend, and when I was small talking with the owner of another business in that exact same industry I noticed something interesting.
It’s something I later realised happened to me over and over again, but I simply was blind to it.
You must have this experience where after you noticed something for the first time, you cannot unsee it and suddenly you realise it was always there…
That talented business owner, was enthusiastically talking with me about another business project he has that has nothing to do with the business he is now representing.
So as I said, it’s nothing special, but that time I caught the opportunity.
And that’s the Business insight for this video – always listen to what people are not saying and not only to what they are. In negotiations, in job interviews, in sales meetings, networking and when sourcing leads to make deals.
So many times, the things people won’t talk about are just as telling about the situation as the things they are talking about and sometimes even more.
You see, ask almost any experienced entrepreneur what is the future of a business that’s not yet mature and doesn’t yet have a rock solid system and branding once the founder starts to get excited about something else.
You are right, it’s not a bright future, more often than not that business will be forsaken, start losing money and eventually closed after major losses.
So I took a closer look at that company’s operations and product lines, and I could easily see a competitive disadvantage it has and a product it is clearly missing. So I knew how to dramatically improve the business.
I talked to the owner and he said he knows about these things but his focus is more centered around his next project.
And that’s the second business insight for the video – don’t be afraid that your ideas will get stolen and don’t try to plan your success or the success of your business on some clever or unique idea.
Keep it simple and communicate. This is how you make deals where everybody involved in them is happy.
Fortunately for both of us, like many talented and experienced business owners he had this experience of a business going south because of lack of focus as well.
So when we had the meeting for negotiating the deal it was clear to both of us it’s for the best of both of us and for the future of the business that the transaction will be made.
And so I asked him:
“Let’s say you put some extra focus and hard work into this business. What do you expect to profit from it this year?”
And that’s the third business insight for this video and the reason I was able to buy that business for very little money down – the price of something will be dramatically different under different framing.
If I would ask him – “how much do you think this business is worth?”
Chances are that a big number would have been thrown, which would make negotiation incredibly hard and the deal would probably be lost.
I wouldn’t be able to acquire a great business. I already knew how to improve even further.
He would have to spend his time and money on a project he is no longer passionate about and would probably lose money instead of getting some,
The employees would have to be fired and so on.
Being able to set the right frame for the deal and price is a key to making a deal happen or people motivated and satisfied, be it for sales, job interviews, team meetings or acquiring businesses.