Sunday Aug 13, 2023
Sunday Aug 13, 2023
Welcome back to Making Bank. On today’s episode, we have a compilation of previous episodes with Jonathan Jay, Roland Fraiser, KC Chohan, Trevor Blake, Andre Swanston, Ross Hamilton & Antonio Garrido and in this episode you will hear tips and tricks from top entrepreneurs about how to successfully buy or sell a business.
Do not miss this compilation episode of the Best Of Making Bank Series.
(0:54) Jonathan Jay
The majority of businesses don't succeed past the first five years, so the best approach is to look for a business that's been running for at least five years that makes solid, reliable profits every single month and then once you've got the business, it will continue to make solid, reliable profits month after month for you.
(5:41) Roland Fraiser
The best way to identify which business to get into is by using what is known as the acquisition wheel and this wheel consists of seven categories. They are competitors, media, resources, products, services, monthly recurring or annual recurring companies, suppliers, distributors, and ip. Now you need to know who are the primary companies that fit that description.
(13:55) KC Chohan
You can save a lot on tax by changing the ownership structure of everything. So when the company is owned by the trust ahead of the sale, when the sale happens, the trust will receive those funds and that saves you all the taxes unless you make a distribution. If you distribute those funds to a beneficiary, they are taxable.
(15:54) Trevor Blake
In this new world, you have to rely really on your intuition more than you ever had to before. Develop a strong connection to your intuition so that you can make instantaneous decisions that you feel are right, even though the world might be saying otherwise. This is because you do not have time to always ask for help for everything. You have to react really quickly and for that you need strong intuition.
(19:29) Andre Swanston
The value of multi-year contracts was exponentially more in terms of the multiple you could get on revenue as opposed to one-off contracts. And so in terms of preparing to raise another round, you should note that 50 cents of a multi-year contract was worth 2$ to $3 of a one-time expense. So there are different ways that you have to think about growing it and valuation.
(21:30) Ross Hamilton
There’s a huge change when you remove the word problem and change it with the word project. So now you don't have a problem. You have a project and this mental shift in how you view problems will really help solve a lot of other things that may hinder your business into either growing or even when you want to buy or sell one.
(27:00) Antonio Garrido
Leaders with a mindset of abundance as compared to scarcity tend to have a higher success rate. Think about what you're grateful for. You are in a tremendously blessed situation. Ask people how you can help and don't accept an “Everything's good” answer. Keep pushing and once they give you an answer, start following up on your commitments.