Buy Business - They're Cheaper by the Dozen...
If you’re under 55 years in age or spirit, right now is the greatest opportunity of your lifetime to buy a business of your own. You might even want to buy several companies and build a business empire.Why?
Massive numbers of Baby Boomer business owners are reaching retirement age and want to sell. There is a shortage of qualified buyers who have the know-how and access to capital necessary to make the purchase. Prices are low. Terms are flexible. To buy and build a major company, right now, just takes some knowledge of financial leverage, some simple strategies and some chutzpah.
Let’s take one simple strategy. It may be simple, but you should know that this strategy has built the wealthiest companies in the world. You should also know that these companies built their wealth during tough economic times, just like now, using this simple strategy.
Before I tell you the strategy, let’s look at today’s business realities. Most companies are either losing money or making only marginal profits. Their fixed overhead was built up during the boom times and today they do not have sufficient customers to cover expenses. As cash flow tightened, they’ve gotten further behind on their payments to suppliers and lenders. In small and mid-sized companies especially, owners are apt to have close relationships with many of their key employees and find it difficult if not impossible to cut their pay or lay them off. Their fixed commitments are eating their lunch.
Banks aren’t making loans to good companies, never mind ones that are barely profitable or losing money. In fact, many of these companies have recently received notices from their lenders that their credit lines have been reduced.Put yourself in that business owner’s place. What’s more, see yourself as approaching age 65 and wanting to retire. You’ve spent a lifetime building your company. You’re exhausted. You’re certainly not the energetic young tiger that was the driving force through all your past challenges. You know what it takes to survive the current crisis, ride out the storm and rebuild when the prosperity side of the cycle returns.
Do you really want to work that hard and take that kind of risk into your seventies? Most prefer to sell. But, where are the buyers?Now put yourself in the place of a young tiger, anxious for business success. This may actually not be that difficult for you, especially if that’s who you are. You would love to own a thriving business but you don’t have the cash or the credit to acquire a company. You certainly wouldn’t have the staying power to operate a company losing money until your hard work and a growing economy turns it around. You may even be fearful that you might bite off more than you can chew. Maybe you should stay where you feel safe until the economy is growing again and cash is easier to come by?
So, now you can see why there are lots of sellers and few buyers. Why businesses are coming for sale in record numbers and ending up in liquidation for want of a qualified buyer. Why prices are low, terms are flexible and if you only knew the simple strategy I’m going to share with you, you could make a killing. So, are you ready to hear it? Are you sure? It’s really simple. In fact, it’s only 4 words. Yet to understand it puts the power of ageless wisdom in your hands. Are you sure you can handle it? Ok, here it is.
Buy, consolidate, shed…repeat. So that’s it? What’s the big deal? What does it mean anyway? Well, if just reading it and saying it to yourself didn’t give you an epiphany, let’s spend the next few minutes and see what it means.Let’s take two competing companies, both losing money in a shrinking economy.
During the good times there were enough customers for both to build and prosper. But, now both are on the verge of collapse. Both are for sale by owners desperate for a buyer. The offering prices are already low. The terms are already flexible. A smart buyer could easily play one off against the other and get themselves an even better deal. Yet, for all the reasons we just discussed, it seem no young tigers are willing or able to make the purchase.Have you had your epiphany yet? Yes or no, either way, read on and we’ll pull it all together.
A smart entrepreneur understands that if you buy either company you are buying the same problems that its current owner has. However, the really savvy entrepreneur knows that if you buy both companies, and apply the simple strategy, you turn both companies into one winner, bought for a bargain.
It works like this. You BUY both companies. You identify which company has the better facilities. You CONSOLIDATE the two companies moving operations to the better facilities keeping only the better resources and personnel. You SHED (sell off, liquidate or terminate) the surplus assets and personnel of both companies.
The customer base that was inadequately supporting both companies can now very adequately support the consolidated company. You have taken two losing companies and consolidated them into one profitable enterprise.But you’re still not finished. Remember the last part of the simple strategy…REPEAT. You do it again and again and again, buying up and consolidating competitors until by the time the business cycle has returned to prosperity you have built a successful business empire.
Well, I know what you’re thinking. Sounds great, but where do I get the cash. It’s a simple enough strategy but you can’t do it for free. Right? Right. You can’t do it for free. But you can do it with other people’s money. You can do it if you understand some of the equally simple principles and methods of financial leverage.
Do you want to learn how you too can build a dynamic business empire of your own? Do you want to find out how to get advantageous financing in the current marketplace? I have just put online my new 25 minute video, "Getting Rich Your Way" to show you how it's being done by other people very much like you and how you can too.
Stream it free at http://GettingRichYourWay.com