How to Value a Small Business (Key Factors You Should Consider Before You Buy or Sell)
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- เผยแพร่เมื่อ 8 ต.ค. 2019
- Years ago I was involved in the sale of a business that I founded. That was way back before the miracle of TH-cam when you could go on this social media site and find some videos on how to value a business. So I did what a lot of people did back then, I hired a business attorney to represent me during the negotiations. We went into the negotiation. I remember the negotiation was intense. I remember thinking this isn't going the way I want it to, but I leaned on the knowledge of the attorney. I believed what he was telling me was correct. After a while we negotiated a price. But, I walked out of that meeting thinking, this just doesn't feel right. The number was wrong, but I thought I am going to go ahead with what my business attorney is recommending. Soon after I discovered the price I sold the business for was less than its value. So I resolved to never let that happen again. I dove head first into learning how to value a business and how to negotiate the best price. Since that time I've been involved in almost a dozen startups. I've also offered advice to business owners in the process of selling their businesses. In this video I outline important things you should consider when valuing a small business. There are many other things to know but if you learn the basic steps I outline here you will be much farther ahead of me when I sold my first multi-million dollar business. Feel free to leave comments or questions.
This is pure gold when it comes to an intro to small business valuation.
I’m glad you enjoyed the video. I wanted to keep it succinct and to the point. Thanks for watching!
So much value in this single video. Im definitely going to watch it one more time and take notes. Thank you!
I’m glad you found my video helpful. I enjoyed making it.
Thank you so much for this information. The explanation clarified the terms and the approach so much better than other videos I've watched. Thanks again.
Thank you Eric. I’m glad you found the video helpful. It’s a topic I enjoy talking about.
Thank you for your useful information, learned a lot!!. I was lookin to get a idea how to value a business
I am glad you found the video helpful. I shared things I wish I'd known when I sold my first successful business.
This is absolutely awesome. I am currently a finance freshman in college and this has helped broaden my knowledge a lot. I’ve been wanted to figure out ways to value businesses and this increased that skill for me, so thank you.
I'm glad you found this video helpful. For business ideas heck out the two-three most recent videos on Side Hustle Rules, my other TH-cam channel. If you like the videos consider subscribing.
Your videos are very useful and provide lots of information. I have received lots of help after watching this post, please continue to share this kind of information. Thank you.
Thank you for the kind words and thanks for watching my videos. I apologize for responding to your comment so late.
It's amazing how time has created space for more resources to emerge for businesses to grow. Values are very much like underlying motivators and definitely important for all businesses and entrepreneurs. Thank you!
It is amazing! Without advances in tech I couldn't have launched my first publishing company from my dining room.
Lies again? Percentage Of Share Holder
Besides risk I also take into account of the leasehold interest (if the lease is no good and expires soon and no renewal term), taking out owner's wages from net income if owner is working there, and the inventory has to add back to the selling price at closing. I also use expenses vs adjusted gross as a percentage to compare to industrial standard, if there is one. Goodwill is also an important factor!
I agree. These are all important things to consider when determining value/price.
i found tis video very usefull to have a general idea... however a bit reducer. lack of some important things like inventory...equipment .. permisses bla bla bla.
example of Andrea´s bakery.
lets assume 2 times anual profit at 300k
the bakery has 80k in inventory and equipment.
and the building is for sale together with the busines (500k)
should we ad everything for the face value of things ? 500+300+80 = 880k ?
should i spend 880k in a business that make 150k a year ?
ok..if i run out of business i can still sell everything ...
and what if its a very specific kind business and the equipment has no liquidity at all ? like aerospacial parts ..or medical components ..
You’re exactly correct Andre and that’s why many small businesses never sell. The owner has created a job for themselves and accumulated lots of equipment, building space, and maybe obsolete inventory. But the cash flows generated from the business don’t justify a sale (they can’t find a buyer willing to pay what they need out of the business) so they close their doors and liquidate (sell the equipment and property).
Great Content! Thank you.
I am glad you enjoyed the video. Thank you for watching!
Good video! We just had someone come in to our shop offering to buy our business. Your example seems like a good way to value our business. Don't know if we are going to sell, but at least we have an idea of what it's worth now. Thank you!
If they initiated the conversation be sure you know 100% why they want to buy your business. I have a good friend who owned a struggling bar with a long term lease. One day the owner of the building stopped by and offered my friend a relatively small cash incentive to leave the property. My friend said no. Not long afterwards my friend learned a large drug store chain was eager to buy the land so they could build a drug store on the prime corner lot his bar sat on. With this knowledge my friend was able to negotiate a HUGE buyout of his lease. The moral of this story is there is always a reason behind a sudden, unexpected request.
@@Over50tv Good to know, thanks. This is the year before California switches most outdoor power equipment over to battery in 2024. We are at a loss to how that will affect our business. Stick it out, or sell now. There will still be lots of gas engine repairs, but there also is a shortage of good mechanics willing to work. Ahh the joys of owning a small business in these crazy times!?
Yes, there are always tough decisions to be made. Think about how you can create other revenue streams using your skills and current customer base. Thank you for watching!
Thank you for your information!
I'm glad you found this info helpful. Thank you for watching.
Great information! I have business owners ask me all the time what their business is worth.
I'm glad you enjoyed the video. I enjoyed making it. Thank you for watching!
Awesome video! Thank you!
Glad you liked it! Thank you for watching. For more business info and tips please consider subscribing to Side Hustle Rules, my other TH-cam channel.
Great stuff. You were clear and spot on. I look forward to more of your videos.
Thanks Percy! Please check out Side Hustle Rules, my other TH-cam channel. It's a relatively new, channel, but it will be uploading more business videos starting next week. Thank you for watching my channel.
Great video!!
Thank you! And, thanks for watching. I have a video scheduled for tomorrow on my Side Hustle Rules TH-cam channel you might find helpful.
Hi Lou. Thank you for your video. Do you have a video that explains what 'Multiples' mean and how it is related to risk?
Hi Kristoffer! No I don't have a video that explains 'multiples and how they relate to risk when purchasing/selling a business. But, it is a great topic and it's video I will produce. In fact, I just put it on my production list. Here's a link to an article that may help you understand multiples: www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/the-right-role-for-multiples-in-valuation
WOW! Great information - THANK YOU! We have been in the accounting and finance advisory services business for a long time. We are currently looking into an accounting business as owner is retiring. My challenge is that the executive admin (for 20yrs) said that she was planning on leaving IF the person buying was difficult. She claims to like us, BUT it slipped from her mouth that IF she (should) LEAVE many clients would LEAVE too.. UGH.. How would you handle a situation like that? My husband thinks that she MAY blackmail us into doubling or tripling her pay.. :(
I would need a lot more info before I could 100% say what I would do, but in general I don't work with people I don't trust and I would never let anyone have control over the success or profitability of any business I'm associated with.
Great stuff!
Thanks for watching our video John. Too bad I didn't have a resource like TH-cam back then. It certainly would have helped me!
Really helpful for young entrepreneurs who want to raise capital in exchange for equity
I'm glad you found the video helpful. Thanks for watching and thank you for commenting.
Ty Sir, I am being forced to buy out or cell to my partner. I am trying to value it today and this is really helpful and eased my mind..
I'm glad you found this video helpful Please don't let them take advantage of you! Good luck! P.s. Delay the negotiating until you read NEVER SPLIT THE DIFFERENCE. NEGOTIATING AS IF YOUR LIFE DEPENDED ON IT by Chris Voss or listen to the audiotape.
Great information.
Glad it was helpful! Thank you for watching!
I think you gave me the answer I was looking for. I'm about to buy a hair solon business. And I wanted to know how many multiples I should use. I'm thinking no more than 2x
I agree. There are multiple factors to consider but in general I would not go more than 2x.
Do you only use 1 year of the business income to figure how much is worth??
Hi Lou, thank you very much for your informative video, which has been immensely helpful to me. If I am considering purchasing a small business, should I engage a broker to represent me or hire an attorney to assist with reviewing all the accounting documents? I appreciate your insights on this matter.
Hello! I created a video on my Side Hustle Rules channel to answer your question. Check it out here: th-cam.com/video/hdY0c1beuXE/w-d-xo.html
What about the value of inventory, equipment and building? Is this valued added to the value determined by the net sales with adjustments for for add backs times the multiplier?
Every business opportunity is different because of the size of the business, the scope of the deal, and market conditions. But in general if I'm selling a business I will agree to a valuation based on the multiple and then add in the value of pertinent assets.
awsome i like it
Thank you! And, thank you for watching.
You should teach course on how to buy business at cheap great prices during economic downturn times especially when owner is retiring.
Thank you for your question. It inspired me to publish this video: th-cam.com/video/GPAfjMwDjZQ/w-d-xo.html If you have any questions join my Patreon page: www.patreon.com/sidehustlerules
Good video. For a putting a dollar value would it be safe to say the bakery would bring the 750k because we forecast another strong 5 years?
If it's basically a mom-and-pop business and I am buying I wouldn't look beyond a three year projection or $450k. If I am selling I am staying firm at a five year timeframe or $750k.
Thank you
One thing I didn't say in the video is once value is determined the rest is all negotiation. Good negotiators get the best price. Thanks for watching.
100,000 is not the net income. It is the operating income. You have to factor in interest and taxes to get the Net Income.
You are right. I showed the 'add backs' separately for the purposes of this video. I was not as clear as I should have been but taken as a whole this video is correct. I also should have warned people about relying/trusting EBITDA numbers when determining valuation. Thanks for the comment.
Thanks a lot
Thank you for watching!
Thanks Lou
I’m glad you found the video helpful. Thank you for watching!
Thank you for watching! (Something I didn't mention in the video is if you are looking at a business to buy the first step is to determine the value. The rest is all negotiation.
Wife and I are looking to buy a service business sometime in the next couple years. I work in HVAC currently and make good money but have hit a ceiling and ready to take on some additional risk.
i suggest preparing for that eventuality now. The sooner you begin the process the better prepared you'll be when you are ready to take your career to the next level. Also, consider subscribing to Side Hustle Rules, my other TH-cam channel, where I go deeper into the business of starting and building a side hustle or full-time business. Good luck.
Would the owners salary of a sole proprietor/ owner operated business still be added back into the value? Without the owner working the business wouldn't run but if you add it back there is no labor expenses?
Great video by the way. ❤
If as you say the owner leaves and 'the business wouldn't run' then the business is of no value to anyone other than the owner. Therefore how the owner's salary is treated is inconsequential. Thanks for watching.
P.S. I'll answer this question in more detail in a video on the Side Hustle Rules Patreon page. That page is Subscription only. But, virtually every video on the Side Hustle Rules Patreon page eventually makes its way to the Side Hustle Rules TH-cam page where you can watch it for free.
If i have the SDE's of the past 4 years, do I take the average times the multiplier to craft my offer? Or just the most recent SDE (even if it was the highest of the past 4 years?)
Closely examine the underlying reasons why the most recent numbers are the highest in four years. Obviously I don't have the full picture but in general I lean towards discounting the recent numbers.
Thanks for sharing! If it’s not to personal may I ask why you sold it? I starting a profitable business with annual 100k profit hard?
My selling the company was a business decision. I am not sure if I understand the second part of your question but I think you are asking if it’s hard to start a business with $100k profit. My answer to that question is ‘it depends’ because a lot of things have to fall into place for a person to be able to do that. I believe two of the most important factors in the equation are patience (most people don’t have that attribute) and the ability to creatively view the landscape.
What about assets? What if you have strip mall that nets $300,000 per year and the real estate appraised for $1,000,000? Would it be a multiple of three for net income plus appraisal?
There are a lot of factors to consider but in general if I was selling that property I'd probably use a higher multiple plus appraisal.
@@Over50tv what multiple could you use for that? 50X ??
Certainly not 50x’s, but that’s a nice asset so I’m not giving it away.
Owners comp being an add back may work if you're selling to a larger company but if you're selling to a person, they need to pay themselves a salary.
In general you are right. But, there are a lot of variables. It really depends on the circumstances of the person making the purchase.
Question! If you are selling a hardware business for example, do you include the inventory in the purchase price or is that added on top of the value based on the EBITDA multiple?
I'd include the inventory in the purchase price.
@@Over50tv so they buy at an 4x EBITDA say ($2,000,000 value), which include the inventory value?
@@connorduffy8620 If the buyer wants the inventory you can either negotiate the value separately (which is commonly done in small retail) or add YOUR estimated value of your inventory to the purchase price. If I'm the seller, and provided there is substantial inventory, there are a few reasons I prefer to include inventory in my valuation. One reason being I don't like to run a 'fire sale' to get rid of inventory (but, I will if I have to). But, the main reason is it gives me more opportunity to negotiate. This is probably all the info I can share without more details. And, for that I would have to charge a fee.
How to consider the costs towards getting vendor registration in govt transporr organisations, as the goods they buy for their assets have to get it approved as per their design standards, which is a tedious time and cost intensive process. Once approved, it has been an opportunity to supply for years uninterrupted.
I don't understand your comment.
If I understand correctly, owner's compensation should be added to the $150k? Then the multiple multiplied by that amount ... ($150k + owner's salary)* multiple. Correct?
Yes, that is it.
This might be a silly question, but why do you add the add backs to the net income? Aren't those more expenses?
Maybe this little example will help explain "add backs": There was a situation where the owner of the company charged his wife and son's car payment, auto insurance and health insurance to his company. If the sale went through those "expenses" would be eliminated therefore increasing net income.
This is a different mindset from other business brokers that
Adjusted ebitda*multiple + left over working capital + goodwill = valuation
Thanks for watching and thanks for the comment. I'm not a business broker but understanding the intricacies of valuing a business is a priority and something I have come to enjoy doing. Now, when it comes to EBITDA may I suggest reading this article: www.morningstar.ca/ca/news/182454/is-ebitda-as-bad-as-buffett-says.aspx
Do you add the value of the buildings to if they selling the freehold of the buildings and land with the business
Hi Adam! Before you begin the process of selling your business decide what you want to get out of the deal. If it makes sense to include real estate in the transaction then include it at the beginning, or hold back, and use real estate as a bargaining chip you can offer later during negotiation. Your ability to negotiate, not allowing yourself to be pressured into a bad deal, and being willing to walk about from a deal are the keys to success in any transaction.
How do you calculate cost basis to determine capital gains from sale?
Hi Silvie! I think this explanation from NetSuite answers your question: "Cost basis is the original price of a capital asset plus any costs associated with buying the asset. Capital gains or losses are computed by subtracting the cost basis from the market value at the time of sale. A business can choose from multiple cost basis methods to calculate the capital gain or loss." You can find the full article here: www.netsuite.com/portal/resource/articles/accounting/cost-basis.shtml
Question! what is multiples in business valuation and how can it be used?
Multiples are often used by buyer/seller to determine the SALES PRICE of a business. With smaller businesses I find multiples are often arbitrary (hard to pin down). Most often you value a company by using comparables or you value a business by determining intrinsic value using discounted flow valuation. When you use the second valuation method you are valuing a company based on its fundamentals, it's cash flows, it's growth, it's risk. A third way to value a company is to use option pricing models which is calculating contingent cash flows.
So in this example, the value of the company’s shares is $150K divided by the number of shares? And how do you decide how many shares to create? I’m looking to invest in small businesses and want to understand how they operate.
Hi @Boomtiger47! The number of shares you issue, is completely arbitrary, almost irrelevant, because the value of the total shares won't exceed the value of the business. So whatever formula you need to come up with to determine how many share you issue is usually going to be okay. I recommend prioritizing mutually agreed upon accords regarding percentage of ownership, management, financial controls, and consequences if goals and other metrics aren't met. (At some point I may discuss investing in small businesses on a Side Hustle Rules livestream. Consider Subscribing to that TH-cam channel for updates)
This is great work. We’d love to showcase it and possibly do a collaboration. 🤙🏼🚀
Thank you!
I’m currently looking into buying a business. To me I think they are asking a bit much for it. Would you consider helping me out to determine a far price of the business?
Hi Mark! I find most small business owners overestimate the value of their business so chances are if you think they are asking a bit much you are probably right. As a business consultant I'd be happy to have an initial consultation with you where we discuss the basics of the business, what to look out for, and I'll give you some negotiation tips. If you want me to do a closer exam of the business I can do that too. However, I want to mention that I do charge a consultants fee for the value I provide. If you are interested in talking to me please email me at: lou@over50tv.com
Lou, thanks for making this helpful video. Considering to sell my restaurant business with real estate. Both of the business broker and real estate broker I interviewed said it might get the chance for them to be the broker to represent the seller and buyer sides. what do you think about this?
No, working with a broker who represents both sides in any transaction is not something I would do. I want someone whose allegiance is to me and me alone.
So basically, you should be able to pay off your business with 2-3 years income? Is that normal? Does this not include things like the building or the property?
I am sorry, I don't understand what you are asking. I did not say or infer that you should be able to pay off a business with 2-3 years income? I know every situation is different. My emphasis was on how net income/profits can be interpreted for valuation purposes. I also looked at, and offered ideas on a range of multiples.
Hi Lou - would you offer services as a Consultant for a business valuation? Thanks
Hi Freeskies! It depends on the type and size of the business. Give me more info and I'll let you know if I can help. My email address is: lou@over50tv.com Thanks for reaching out!
Do you use just one year? I thought you needed to calcuated several years and then do multiple. Ty
???
You are correct. Usually, you want to look at 3-5 past years to assess cash flow/net income trend (growth, as a % of income, gross margin, etc). Then you take a weighed average of the measured period to determine the SDE amount to which you’ll apply the multiple. For a business as small as this hypothetical bakery, it should be bought for no more than 2x SDE or 300k - unless there is some moat (ie: guaranteed long-term contracts, market monopoly/quasi monopoly) or real estate is included . Otherwise, your risk-adjusted return on the capital you invest will be a lot less interesting. It’s Ok to pay a BIT more if you think there are tailwinds and growth is promising but not 50% more.
700th Like 👍🏾
Thanks for watching Tony Stark! If you are interested in a new video on valuing and selling a small business check out my Side Hustle Rules channel.
Are you open to consulting with a sell? I have a buyer and trying to figure out my purchase price.
Hello! Why type of business is it?
Hi lou! We’re looking to sell our service based business. What are your consulting fees?
Hi Rachel! Thanks for reaching out. Please send me an email and I'll get right back to you! My email address is lou@over50tv.com
Thank you so much indeed, Can anyone guide me, how to sell, a management consultancy firm in Dubai, with a proper and Active multi currency bank account
Hi London Bali43! I have no experience in selling (or buying) a management consulting business but I do have a friend who is an expert at buying and selling businesses. Send me your email address and I'll forward it on to him. Maybe he can help you. Send your info to my email address: lou@over50tv.com
Info starts at 2:11
Jane! I hope you found the overall video helpful.
Where would I look for someone to appraise my business
Hi Stuart! Email me and I'll see if I can help you. My email address is: lou@over50tv.com
What about distributions ? Add back ?
I do mention add backs. The term '+add backs', is also written on the white board (please watch the video again). Regarding distributions, other than 'Owners Comp', many 'distributions' are disguised as 'expenses'. They are included in Op expenses or COGS.
So basically whatever u net, double or trouble that right????
It's not that simple.
Does this apply for an online business?
In general, my answer is yes. However, there are several other key factors to consider, including the customer base (number of active users/customers), customer acquisition costs, traffic and engagement, and the stability of revenue streams.
Aren’t COGS and Op exp the same?🤔
No COGS regards direct production costs and op expense pertains to overall business.
what about inventory for sale
Inventory is included. I'm producing a new video on small business valuation. Look for it on my Side Hustle Rules TH-cam channel. I think you'll find it eye opening.
Who will actually buy a business for its actual value ? Thats like paying MSRP for a vehicle
To quote NYU prof Aswath Damodaran: "If someone really, really wants to buy a business they'll find a way to buy it." (even if the numbers don't justify the purchase price).
If the business owns real estate, would you add the value of the real estate or other assets to the value?
If I'm purchasing a business more often than not I want the real estate included in the deal. If I'm selling I may or many not want to include the real estate. It all depends on the deal.
@@Over50tv I guess I should rephrase that! So in your example in this video, using the 2X model the business would be valued at $300k. Now assuming the business came with a $1M property and $100k in vehicles to operate the business, would the new value be $1.4M?
@@Bstybros I don’t like giving absolutes without knowing all the facts (including why you are using 2x instead of a higher ratio) but based on the info you have provided the formula does lead to that conclusion.
What about taxes?
How can a business get a 10x offer?
Getting a 10x offer for a small business is typically due to factors beyond the owner's control. It often involves a significant amount of luck or unique circumstances that make the business exceptionally attractive to buyers.
I would LOVE to pick your brain, sir. If you are still around, and get this message - please let me know.
Hi Shannon! You are welcome to email me at lou@over50tv.com
@@Over50tv I did a couple months ago, but I haven't heard from you. It might have gone to Spam.
Shannon Pennington I didn’t see it. Please email me again, lou@over50tv.com. I’ll respond by tomorrow.
why would someone pay a x3? if its earns 150k a year?
In this video I didn't say someone should--or should not--pay a 3x multiple for a small business that earns $150k per year. At least twice I said I was using arbitrary numbers to explain the process of determining a value.
Let’s say my business
Is in level of risk #5
Net income $400 k
= business worth $2 M
Can I get $2.3 M
Because I have $300 k
On Marchant inventory?
I can't predict whether or not you'd get a loan although my guess is, no, based on how I interpret the small amount of info you've given me. My suggestion is to ask a loan officer, but first I'd discuss your data and goals with an experienced consultant (I emphasize the word experienced). Email me if you want the name of a financial organization I recently started to work with: lou@over50tv.com
Hamare pass farmaya hota nahin hai isliye ham lakhon mein business karte hain kuchh real estate ka bhi hamara Jo hamare pass jitne bhi takat Hoti hai ham utna hi Kam karte Hain agar hamari arju hai ki ek badi ladies development corporation ka business hamare bacche graduation ham sab ek ek hi Kam karte Hain sab hamari baten chalte Hain isliye koi achcha business aajkal ke business koi achcha sa business ke bare mein aap basavaraj hain to hamare liye Allah jariya banane wala hai Insan ko koshish Karna hai kamyabi jila Na Jana o Allah Allah Hu Akbar sallallahu alayhi vasllam
मुझे आपके प्रतिसाद का जल्दी से जवाब नहीं देने के लिए क्षमा करें। मैं आपकी टिप्पणी की सच्चाई को बहुत आभास करता हूँ। कृपया 'साइड हस्ल रूल्स' को सब्सक्राइब करें, मेरे दूसरे TH-cam चैनल को ध्यान में रखें। उस चैनल पर मैं और भी गहराई से व्यापार विचार प्रदान करता हूँ।
Where is part 2?
Part two is included in this video, right after the B-roll.
@@Over50tv great thank you sir!
Do you help evaluate other business? If so, please send me your rate.
Hi Jessica! I'll need your email address to contact you.
How would I contact you for a private meeting?
My email address is lou@over50tv.com.
Your business is only worth what people will pay for it🤷🏼♂️
Your statement implies that the buyer is in the drivers seat. If I'm selling I want to be the guy behind the wheel so I'll do everything I can to increase the businesses value and increase my leverage. If you haven't already subscribed to my Side Hustle Rules TH-cam channel please consider doing so. That channel is relatively new but over time I'll talk more about business valuations. I actually have a new video coming out today or tomorrow about the topic.
You were spot on not to trust other parties, even the ones supposed to be on your Team, very often these Team players have only one game play, to secure a fat fee and in some cases a backhand from the other party.
Due Diligence wins every time and one of the reasons I am looking at Selling Multiples, which seem to exist at different levels dependant upon the type of Business.
I am fortunate to have owned and sold many a small business and remember looking at Buying a Milk Round, delivering milk to households here in the UK when multiples were absolutely pornographic in there size and all because it was said that you were buying a Guaranteed for Life Controlled Milk Round Guaranteeing your income, where no others could EVER Enter the market in competition; years latter the Supermarkets arrived, cut the cost of milk in half and ALL the Milkmen disappeared off the street !
This was a very memorable lesson to me and something others should take onboard, things change, a lawn cutting service disappears due to a Lawn Robot, a newspaper Business dwindles to nothing by Social Media and on it goes.
That is why it was once said to me that the Best Business on the Planet was the Death Business, people will always die !
Mr Spence Eng
ApartmentsWales.com
Thank you for sharing your story. The hard lessons are never forgotten, nor should they be. You can't put a price on the wisdom we gain from them. I read a book called, Think and Grow Rich by Napoleon Hill. You probably heard of it. I believe if I'd digested his book earlier in my career I could have avoided some costly mistakes. Your story inspired me to read it again for more pearls of wisdom.
@@Over50tv Funny thing, but I never read anything Financial in my life let alone anything by Napoleon Hill, the only thing other than Engineering Manuals I read was the 5 or so years I spent Day Trading on the LSE, then choosing to read anything and everything to become the best of the best; but only to realise that ALL Stock Markets are RIGGED and buying one bottle of snake oil from one author was the same as another, until the penny dropped that the stock markets were being driven by a piece of Soft Ware and corruptable by those in the know.
I opened my first Manufacturing Company at the age of 24 years and within 3 years employed 60 people with a turnover of 6 million today, at the time I could not read a spread sheet or a set of accounts, clueless about tax benifits, infact I employed a full time accountant to do anything and all financial, which was more luck than you can imagine as it realy could have ended in disaster if he had choose to walk off with the cash.
Today at 70 tomorrow, I run a small Serviced Apartment Rental Business and a Property Portfolio, do my own set of accounts, can read flow charts, cash forcasts and anything else that passes my desk, but in my opinion all of this will not make you money, hard work, long hours and a determination and add a spot of luck will do all that.
I have 3 children and tried to mentor all 3 and Failed, learning that it would seem all would prefer to do their own thing, even if it means having to lose face.
Mr Spence Eng
Thanks a lot
Most welcome! Thank you for watching!