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episode 517: Everything You Need to Know Before You Buy a Business
Buying a business? Maybe you’ve thought about it before. You could own a laundromat, self-storage facility, plumbing business, or landscaping service. It doesn’t sound glamorous, but these types of businesses can make you millions of dollars and lead you to financial freedom. And, with so many baby boomers retiring, tons of small businesses with built-in customer bases are for sale, just waiting for YOU to come and make money from them. But before you buy, there are some things you should know.
Elliott Holland, an expert in acquiring small and medium-sized businesses, helps aspiring business buyers uncover whether a business is worth the price. Elliot’s team specializes in business due diligence, making sure that YOU don’t buy a business that’s worth less than what the owner/broker told you it was. Trust him; he’s saved many new entrepreneurs from making million-dollar mistakes.
So, before you buy a business, listen to this episode. In it, Elliot walks through exactly how a business is valued, which loans you can use to buy a business, why you CAN’T trust the financials from the current business owner, questions to ask before you buy, and who should even be buying a business in the first place. Do this right, and you could be sitting on lifetime financial freedom, but take a wrong turn, and you could lose millions (we’ll share that story, too!).
In This Episode We Cover
How to buy a “boring business” that will lead you to financial freedom
How businesses are valued and why you MUST understand “EBITDA”
Tricky ways that business owners inflate their numbers to sell to you for more
Who should (and definitely shouldn’t) be buying small businesses
Three things you MUST look at before you make a bid on a business
The wrong move that lost one business owner over $2,000,000 when buying a business
And So Much More!
Links from the Show
BiggerPockets Money Facebook Group
Network with Other Investors on The Path to FIRE Through the BiggerPockets Forums
Finance Review Guest Onboarding
Join BiggerPockets for FREE
Mindy on BiggerPockets
Scott on BiggePockets
Listen to All Your Favorite BiggerPockets Podcasts in One Place
Apply to Be a Guest on The Money Show
Podcast Talent Search!
Find an Investor-Friendly Agent in Your Area
Find Investor-Friendly Lenders
Codie Sanchez: These “Boring Businesses” Will Make You Rich
Leila and Alex Hormozi’s Unbelievably Simple Investing Advice
Sites to Buy Businesses:
Acquire
BizBuySell
Flippa
QuietLight
Elliot’s Resources From Today’s Episode:
LOI Template
12 Public Stories of Failed Due Diligence
Success Stories
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-517
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