Have you ever considered buying a business but were terrified of paying more than the business is worth? Have you ever wondered what you can do to help ensure that a business you buy today will generate the numbers promised by the previous owner?
Well, today’s guest answers both those questions, helping us to minimize our financial risk when buying a small business!
Brit Foshee—real estate investor and small business owner—walks us through the process he used to buy his first five landscaping companies, how he consolidated them into one big company to increase their value, and how he did it all with minimal financial risk. And he tells us how we can do the same thing if we decide we want to go the route of buying a small business.
Brit tells us how he finds the businesses he buys, how he evaluates them, how he recruits partners to run them, and most importantly, how he gets the owners to all but guarantee their financial success. And for you real estate investors out there, you’ll be amazed at how similar buying a business is to buying real estate!
And make sure you listen for Brit’s recommendations on using “claw backs”—a way to literally guarantee that a business owner doesn’t misrepresent the numbers when selling you a business.
Check him out, and subscribe to the BiggerPockets Business Podcast so you won’t miss our next show!
In This Episode We Cover:
- Brit's story from buying a property to buying businesses
- How people underestimate what it takes to get a business off the ground
- How he finds available businesses on the market
- Similarities between his business model and buying real estate
- How a business with $1M in revenue is likely sustainable without the owner
- Why he made a partner a part-owner
- Come work "with me" vs. come work "for me"
- Why he recommends the owner financing route when buying a business
- How he reduces expenses and increases income right after buying
- Why he thinks employees are #1
- The top mistake owners make
- And SO much more!
Links from the Show
- BiggerPockets Real Estate Podcast
- BRRRR Strategy
- BizBuySell
- Craigslist
- BiggerPockets Business Podcast 37: Choosing the Right Niche—Follow a Business Startup Journey From Day 1 with J Scott
Check the full show notes here: http://biggerpockets.com/bizshow40
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