Welcome to a real-world MBA, where entrepreneurs guide you through what it really takes to start, scale, and sell your own business. Your hosts: J and Carol Scott, who left careers in corporate management to launch their own house-flipping business. Every Tuesday, you'll meet a new guest and learn actionable tips for hiring, firing, marketing, raising capital and more. So whether you're looking to boost profits or bring a new idea to life, you'll come away informed and inspired. Tune in, and learn how to treat your business like a business!
https://www.biggerpockets.com/biggerpockets-business-podcast
episode 101: Acquiring a $1.5M Business with Only $10k Out of Pocket with Nigel Guisinger & Sean Ade
We buy and sell a lot of different assets like houses, stocks, and even bitcoin (sometimes). But what about buying and selling businesses? Business acquisitions can seem like an entirely different world, but they aren’t too different from the regular buying and selling of assets we do every day.
Today’s show features Nigel Guisinger, who you may remember from the wildly popular episode that aired almost exactly a year ago. Last time Nigel talked about buying businesses using seller financing, and now he’s brought a real-world example! With Nigel is his partner and mentee, Sean Ade.
Earlier in 2020, Sean was looking for a business he could buy and take over. Sean had been getting into house plants during the early COVID-19 lockdowns and looked to see if nurseries were worth buying. After sending some lackluster deals to his partner, Nigel, he was notified that a terrarium shop was closing. Sean consulted with the owner and sent the profit and loss statement to Nigel who confirmed that it was a winner
Sean and Nigel used some very creative financing to get a $1,500,000 business under contract for just $10,000 out of pocket. This episode isn’t just an eye-opener for those who overlook buying businesses as assets, but also for those who don’t know what's possible in financing a business purchase!
In This Episode We Cover
- The opportunity of the “business crash” happening right now
- Looking for businesses that fit with your interests
- The importance of having cash flow from day one of ownership
- Profit and loss statements, equity, and valuations of businesses
- Small Business Administration (SBA) loans
- When and how to hire your first employee after you buy an existing business
- And So Much More!
Links from the Show
- BiggerPockets Business Podcast 51: Business Opportunity Is Knocking… Answer the Door! With Nigel Guisinger
- GoBundance
- BizBuySell
- Venmo
- Paypal
- Square
Check the full show notes here: http://biggerpockets.com/bizshow101
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