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Is it possible to buy your way into a C.E.N.T.S business?

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FauxPas

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I have came to the conclusion that I cannot come up with anything original or innovate at all. Neither in conceit or execution. I'm vastly ignorant about business anyway, so I figure that it's probably best that I don't start a business. I've been thinking to instead buy a business that is already fast lane or potentially close to it. As I'm better at improving and expanding upon already existing ideas rather than coming with my own. So essentially just buy an independent business as cheaply as possible, scale the shit, and then sell it later. Although I'm worried that I won't be able to do that under $30,000-60,000 as I feel that I may have to take on debt for something worth in the hundred thousands as I do not want to buy a business that doesn't pay the bills at least. I couldn't care less about time. I don't give a f*ck if I have to work 16 hours a day. As long as I know I'm working towards something that will make me rich.
 

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sparechange

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I have came to the conclusion that I cannot come up with anything original or innovate at all. Neither in conceit or execution. I'm vastly ignorant about business anyway, so I figure that it's probably best that I don't start a business. I've been thinking to instead buy a business that is already fast lane or potentially close to it. As I'm better at improving and expanding upon already existing ideas rather than coming with my own. So essentially just buy an independent business as cheaply as possible, scale the shit, and then sell it later. Although I'm worried that I won't be able to do that under $30,000-60,000 as I feel that I may have to take on debt for something worth in the hundred thousands as I do not want to buy a business that doesn't pay the bills at least. I couldn't care less about time. I don't give a F*ck if I have to work 16 hours a day. As long as I know I'm working towards something that will make me rich.

Think there was a post on here about someone that bought a business and flipped it, could potentially be a good idea. I can't find it, although if you look into existing business's around why not try to replicate them? It would be a lot cheaper, replicate them and add some value skews to it.
 
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Kevin88660

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I have came to the conclusion that I cannot come up with anything original or innovate at all. Neither in conceit or execution. I'm vastly ignorant about business anyway, so I figure that it's probably best that I don't start a business. I've been thinking to instead buy a business that is already fast lane or potentially close to it. As I'm better at improving and expanding upon already existing ideas rather than coming with my own. So essentially just buy an independent business as cheaply as possible, scale the shit, and then sell it later. Although I'm worried that I won't be able to do that under $30,000-60,000 as I feel that I may have to take on debt for something worth in the hundred thousands as I do not want to buy a business that doesn't pay the bills at least. I couldn't care less about time. I don't give a F*ck if I have to work 16 hours a day. As long as I know I'm working towards something that will make me rich.
I think MJ’s unscripted mentioned buying business with good product but bad marketing as an example.
 

MJ DeMarco

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Yes you can, check out the thread here from the guy who buys businesses.


It's a GOLD thread.

There are a lot of great businesses out there with great potential, just poorly executed, or the owner is absent, or with other interests.
 

Ronak

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I have came to the conclusion that I cannot come up with anything original or innovate at all. Neither in conceit or execution. I'm vastly ignorant about business anyway, so I figure that it's probably best that I don't start a business. I've been thinking to instead buy a business that is already fast lane or potentially close to it. As I'm better at improving and expanding upon already existing ideas rather than coming with my own. So essentially just buy an independent business as cheaply as possible, scale the shit, and then sell it later. Although I'm worried that I won't be able to do that under $30,000-60,000 as I feel that I may have to take on debt for something worth in the hundred thousands as I do not want to buy a business that doesn't pay the bills at least. I couldn't care less about time. I don't give a F*ck if I have to work 16 hours a day. As long as I know I'm working towards something that will make me rich.


Buying a business is a great route to the fastlane-- you get guaranteed revenue from day 1, existing customers, products, services, employees, and systems that are proven. From a "cost" standpoint, yes, it is more "expensive" than starting a business, but in many ways less risky for the reasons noted above.

Realistically, $30-60k total will not get you anything serious, unless you're using debt. Take your target income, add a buffer, then multiply by anywhere from 2-4x to get the rough amount you would need to spend to acquire your target, not including real estate. Through an SBA lender, you can finance a majority of that, but you would still need to bring least 5-10% in cash, whether your own or through investors.

All in all, it's harder than it sounds, but easier than most would think, and probably easier than starting from scratch.

Start with bizbuysell.com to get an idea of what's out there. Also make sure you have a competent team around you that can look at deals intelligently to prevent buying junk.

The above steps will get you an income, but won't make you filthy rich. You will have to add some value in order to make your exit/liquidity event worth more than your buy price, usually through some type of growth in the business. Easier said than done. Of course, we are talking about local type businesses, if you're looking into hot industries like Saas, expect to pay more.
 

Walter Hay

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WJK

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I have came to the conclusion that I cannot come up with anything original or innovate at all. Neither in conceit or execution. I'm vastly ignorant about business anyway, so I figure that it's probably best that I don't start a business. I've been thinking to instead buy a business that is already fast lane or potentially close to it. As I'm better at improving and expanding upon already existing ideas rather than coming with my own. So essentially just buy an independent business as cheaply as possible, scale the shit, and then sell it later. Although I'm worried that I won't be able to do that under $30,000-60,000 as I feel that I may have to take on debt for something worth in the hundred thousands as I do not want to buy a business that doesn't pay the bills at least. I couldn't care less about time. I don't give a F*ck if I have to work 16 hours a day. As long as I know I'm working towards something that will make me rich.
There are always opportunities for sale. It's known as the 3 Ds + stupid... Death, debt, divorce, plus stupid. Those factors force people to sell. The more business people you know, and keep in touch with, the more opportunities you will find. You might want to set up a business consulting practice of some kind in order to widen your circle.

You can do without having the whole nut to pay for the business. The way I'd do it is to set the purchase price, set your salary, and then do owner finance by paying them the profits above the salary that you set. That way, in bad times, their payments are 0. In good times, you can pay off the business quickly. Their payments can be set up monthly, quarterly, or yearly. The same with your salary.

Or you can set up a trade. What do you have that you could trade? I knew a guy who closes his real estate deals at top dollar by throwing in a collector car. He was always was restoring another car to add to his fleet.

You're creative. Think of all the ways you can skin the cat!
 

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