What I LOVE about this channel is that I get to see other businesses that are NOT online, god knows I'm sick 'n tired of everyone forcibly pushing online businesses down my throat like it's the only businesses around.
So true about making sure to dilute clients / customers and do not depend on that one big client.. I did this and when my clients business dried up so did mine. Now have may clients paying small amounts but often. Thank you James , class video as always.
Thanks for taking the time to make this video James. I recently bought another business which matched/complimented my existing client base and I learnt a great deal, including how to avoid the liabilities and staff issues though choosing to buy the assets only and the importance of having good legal representation. The ROI has been in the hundreds of percent and leveraging the database has been key to making the purchase successful. They had been trading for 10 years although that wasn’t something I’d considered at the time, it just felt right and the risk was very low.
Buying adds cashflow from day one and if you can find one which is languishing, unloved, a tired owner, etc. then you can get deals but owner financing needs to be at a much higher multiple and with a significant amount down otherwise as a seller you're better off putting in more management and keeping the business.
James, awesome as usual. you saved my sanity with two quotes ... "kiss many frogs to find a prince" and "it needs 8 years to make a stable business" .... nobody tells that to a young business owner. average media input is about making a million in a year of Air BnB flipping or so.
Interested in hearing more about this dude, if you’re happy to share. Things along the lines of how do you go about buying and running them? Or do you buy and install a director to oversee, or keep the original owner on for 1-2 years as part of the compensation package? Understandably TH-cam comments sections aren’t the best for this type of conversation but it’s hard to get real knowledge from real people and you sound like you have a ton of experience!
I learn James's content by explaining it to other people 🙂 I'd suggest to younger people to work somewhere/for someone, get some experience, start their own startup and get a lot of experience from all different views/departments. If it goes bust - a lot of experience learnt. If it skyrockets - great! Buying businesses is great. One should educate themselves what to look for. Going Vertical is a pure gold. I absolutely Love how you James incorporated all the businesses into your "eco system". I tell this to people with pure enthusiasm. Thank you for sharing your story so far and looking forward listening to you.
I would love to see a video on the use of a 3PL third-party warehouse for logistics for shipping products out of an e-commerce website vs in house logistics ? Why choose one over the others
Finding a business is extremely hard and takes tons of patience. Getting the funding to buy a business is relatively easy assume the company is extremely profitable. Many sellers will have their business pre-approved by SBA for an SBA 7(a) loan. All you need to do is be somewhat qualified as a buyer (having the downpayment, some education in business or experience in that sort of business) and they will fund the purchase. Banks love funding existing businesses because it's low risk
Review current businesses for sale… I see roller city become available early Covid time!!! The difference is taking action on the opportunities get intouch with your accountant and talk to them about why your thinking. Assuming they know about take overs or buyouts then get on the phone with the buyers
Sweat equity only works when you have skills that add to a business value. Very idiosyncratic expertise. Market is too efficient for much else. Seller is not likely to hold a significant amount on a sellers note, but may cover the down-payment unless we're talking about seriously small companies
I have a question , how do you value a business ? Do you look at EBITDA per year or net profit per year ? and how much times should i value it based on that x3 ?
Very hard to answer that without knowing the individual scenario. The answer is Botha Ebitda is a good metric for capital intensive businesses to show the businesses free cash flow. Such as a hotel/theme park. If depreciation and interest payments are a million a year then Ebitda is important. If you’re buying a service business like an accountants then net profit is the cookie to track. Multiples vary greatly from 2 times to 15 times.
Import export costs from turkey/india etc ... but rather than your big budget, is it possible to start with 10-20k? And grow the business up from there?
Hey James! How do you decide on price of buying a company? And what are ways to fund it if you don't have the full capital available? i.e.... asking price 100k but have 20k liquid (and maybe need to keep 10 on hand to run said business)
What’s your view James on all these expensive courses offering to show you how to buy business without using your own money,I was tempted by Jonathan jays but is over £10,000 with the vat ?
If you are industry specific then having one or two customers which generate more than 10 percent of revenue perhaps isn’t so relevant. As if they were to move fail close their work would be substituted to others in the industry you serve. Also whether or not your business could carry out without them is important if losing that 10 percent customer still means you can carry on fine then it’s not so important.
James, if you don’t have a large pot of cash or great idea or track record surely you have to start a business up yourself, until you have proved to any bank or investor that you know what your doing. its at this stage you can think of buying other business. People who watch you that are thinking of starting out will have no idea of the effort and hard work you have put in to get to where you are.
Absolutely you do. But you don’t need a large pot of cash. Or a great idea or a track record. I’d read the 8 books I recommend. I’d also watch my zero to 1m video on the channel.
Don’t really do this. I do a few seminars and events. Every year. I think you can get tremendous value from books, podcasts and videos. If you value being in a room and really focused then come to one of my seminars. Ours are no more than £500 for 2 days, we include lunch and food too.
What I LOVE about this channel is that I get to see other businesses that are NOT online, god knows I'm sick 'n tired of everyone forcibly pushing online businesses down my throat like it's the only businesses around.
Facts
This guy is my favorite entrepreneur coach. Excellent.
I have no idea how you muster the energy and passion to run all these businesses.
Fair play to you
Living out his dreams in real time
That’s what the management teams are for! 😉
Hi he does not run the business , he has a management team that does all the work.
So true about making sure to dilute clients / customers and do not depend on that one big client.. I did this and when my clients business dried up so did mine. Now have may clients paying small amounts but often. Thank you James , class video as always.
Thanks for taking the time to make this video James. I recently bought another business which matched/complimented my existing client base and I learnt a great deal, including how to avoid the liabilities and staff issues though choosing to buy the assets only and the importance of having good legal representation. The ROI has been in the hundreds of percent and leveraging the database has been key to making the purchase successful. They had been trading for 10 years although that wasn’t something I’d considered at the time, it just felt right and the risk was very low.
Buying adds cashflow from day one and if you can find one which is languishing, unloved, a tired owner, etc. then you can get deals but owner financing needs to be at a much higher multiple and with a significant amount down otherwise as a seller you're better off putting in more management and keeping the business.
What do you mean by owner financing needs to be at a much higher multiple mate?
Another fantastic video your passion and energy is inspiring
Another Brilliant video! Your work continues to inspire me!! Best wishes from Essex.
First time I've found your content, subscribed in 40 seconds.
Welcome to the party, Mr. Greg Woodworth
James, awesome as usual. you saved my sanity with two quotes ... "kiss many frogs to find a prince" and "it needs 8 years to make a stable business" .... nobody tells that to a young business owner. average media input is about making a million in a year of Air BnB flipping or so.
Buying a business every time. I have bought multiple businesses, it is the way to go.
Interested in hearing more about this dude, if you’re happy to share. Things along the lines of how do you go about buying and running them? Or do you buy and install a director to oversee, or keep the original owner on for 1-2 years as part of the compensation package?
Understandably TH-cam comments sections aren’t the best for this type of conversation but it’s hard to get real knowledge from real people and you sound like you have a ton of experience!
People don’t share, very rarely will someone want to see someone else succeed without something in it for themselves
I learn James's content by explaining it to other people 🙂
I'd suggest to younger people to work somewhere/for someone, get some experience, start their own startup and get a lot of experience from all different views/departments. If it goes bust - a lot of experience learnt. If it skyrockets - great!
Buying businesses is great. One should educate themselves what to look for.
Going Vertical is a pure gold. I absolutely Love how you James incorporated all the businesses into your "eco system". I tell this to people with pure enthusiasm. Thank you for sharing your story so far and looking forward listening to you.
Buying one without a doubt
would be good if there's video about what I should check when buying a business, what business to pick , etc
Great Content and with advice From your pa I'm currently looking at A Business.
I would love to see a video on the use of a 3PL third-party warehouse for logistics for shipping products out of an e-commerce website vs in house logistics ? Why choose one over the others
Thank you James
James how do you find a business to buy? How do you go about it? It is as simple as it sounds? Love the vid
Finding a business is extremely hard and takes tons of patience.
Getting the funding to buy a business is relatively easy assume the company is extremely profitable. Many sellers will have their business pre-approved by SBA for an SBA 7(a) loan. All you need to do is be somewhat qualified as a buyer (having the downpayment, some education in business or experience in that sort of business) and they will fund the purchase. Banks love funding existing businesses because it's low risk
Review current businesses for sale… I see roller city become available early Covid time!!! The difference is taking action on the opportunities get intouch with your accountant and talk to them about why your thinking. Assuming they know about take overs or buyouts then get on the phone with the buyers
I am not experienced but most entrepreneurs i know suggest to buy with seller financing and sweat equity transition
Sweat equity only works when you have skills that add to a business value. Very idiosyncratic expertise. Market is too efficient for much else.
Seller is not likely to hold a significant amount on a sellers note, but may cover the down-payment unless we're talking about seriously small companies
I wish there was a chance to work with James!! maybe one day haha
I have a question , how do you value a business ? Do you look at EBITDA per year or net profit per year ? and how much times should i value it based on that x3 ?
Very hard to answer that without knowing the individual scenario.
The answer is Botha
Ebitda is a good metric for capital intensive businesses to show the businesses free cash flow. Such as a hotel/theme park.
If depreciation and interest payments are a million a year then Ebitda is important.
If you’re buying a service business like an accountants then net profit is the cookie to track.
Multiples vary greatly from 2 times to 15 times.
Import export costs from turkey/india etc ... but rather than your big budget, is it possible to start with 10-20k? And grow the business up from there?
James, your 'N's' look like 'W's' 😛' - other than that - brilliant advice as always
I’m sorry. Everyone says that to me LOL!
Hey James! How do you decide on price of buying a company? And what are ways to fund it if you don't have the full capital available? i.e.... asking price 100k but have 20k liquid (and maybe need to keep 10 on hand to run said business)
What’s your view James on all these expensive courses offering to show you how to buy business without using your own money,I was tempted by Jonathan jays but is over £10,000 with the vat ?
In this economy, building is allways safe
If you are industry specific then having one or two customers which generate more than 10 percent of revenue perhaps isn’t so relevant. As if they were to move fail close their work would be substituted to others in the industry you serve. Also whether or not your business could carry out without them is important if losing that 10 percent customer still means you can carry on fine then it’s not so important.
Good video
James, if you don’t have a large pot of cash or great idea or track record surely you have to start a business up yourself, until you have proved to any bank or investor that you know what your doing. its at this stage you can think of buying other business.
People who watch you that are thinking of starting out will have no idea of the effort and hard work you have put in to get to where you are.
Absolutely you do.
But you don’t need a large pot of cash. Or a great idea or a track record.
I’d read the 8 books I recommend. I’d also watch my zero to 1m video on the channel.
What courses do you offer ?
Don’t really do this.
I do a few seminars and events. Every year.
I think you can get tremendous value from books, podcasts and videos. If you value being in a room and really focused then come to one of my seminars. Ours are no more than £500 for 2 days, we include lunch and food too.
Thanks James,I was looking at your two day course,hopefully I can attend in the near future
I'm interested in buying a nursery for children, however I have no experience in this field and I feel like there are too many risks.
You will lose all your money, if you have no experience, do you have passion? It may still not be enough
@@Kendo_nagasaki26 ok, but I intend to keep the existing stuff in
A bank won’t just lend you money to do this.
Imagine if I told you I bought my first business for $4,000 🤔
I’d believe you
If you can't afford to buy a business doing 1m in revenue, what do you start with? Why not start with a smaller business and scale it?
No customer cowcewtratiow??😂🧐
Thank you Lord Jesus for the gift of life and blessings to me and my family $14,120.47 weekly profit Our lord Jesus have lifted up my Life!!!🙏❤️❤️
I'm 37 and have been looking for ways to be successful, please how??
Sure, the investment-advisor that guides me is..
Mrs Kathy lien
Her services is the best, I got a brand new Lambo last week and paid off my mortgage loan thanks to her wonderful services!
😱Sounds familiar, I have heard her name on several occasions.. and both her success stories in the wall Street journal!