Thread
This took me 12 years to learn...
I'll teach it to you in less than 5 minutes.
My 4-step methodology you'll wish you acted on earlier during this recession:
I'll teach it to you in less than 5 minutes.
My 4-step methodology you'll wish you acted on earlier during this recession:
It's something I created after years of learning biz-buying the hard way.
But the good news for you:
This is exactly how I replaced my 7-figure income working in finance.
And now I’ve done 100s of deals using this same model.
But the good news for you:
This is exactly how I replaced my 7-figure income working in finance.
And now I’ve done 100s of deals using this same model.
I call it “BRRT.”
It’s not foolproof, but I’ve made way more money than I’ve lost.
+ I did my first 3 deals without any capital.
It’s not foolproof, but I’ve made way more money than I’ve lost.
+ I did my first 3 deals without any capital.
Enter acquisition mode: BRRT
• Buy businesses that cashflow
• Recession-resistant sectors
• Raise prices
• Tech additions
Here's how you can execute...
• Buy businesses that cashflow
• Recession-resistant sectors
• Raise prices
• Tech additions
Here's how you can execute...
BUY
Find an inexpensive, underperforming, but PROFITABLE biz…
Then rehab it.
Purchase price + cash flow need to cover the “fixing up” part.
(Seller financing or SBA loans or capital raised)
Find an inexpensive, underperforming, but PROFITABLE biz…
Then rehab it.
Purchase price + cash flow need to cover the “fixing up” part.
(Seller financing or SBA loans or capital raised)
Your action items:
• Look for biz’s with Flippa, BizBuySell, or IRL local SB events.
• Check a biz's website using SimilarWeb or Semrush.
• Analyze traffic, product offerings, and prices – could you increase value here?
• Reach out to the owner.
• Look for biz’s with Flippa, BizBuySell, or IRL local SB events.
• Check a biz's website using SimilarWeb or Semrush.
• Analyze traffic, product offerings, and prices – could you increase value here?
• Reach out to the owner.
RESIST
Buy in a recession-resistant sector.
Think of the "boring" stuff you always need.
Plumbing, consumer staples, health care, finance, housing, HVAC, etc.
Buy in a recession-resistant sector.
Think of the "boring" stuff you always need.
Plumbing, consumer staples, health care, finance, housing, HVAC, etc.
Your action items:
• Search a sector’s historical returns. (Pick an ETF in that sector).
• Review tax returns from 2007-09 and 2020-21.
• Learn about other reliable boring biz’s:
contrarian-thinking.ck.page/130-boring-bizs
• Search a sector’s historical returns. (Pick an ETF in that sector).
• Review tax returns from 2007-09 and 2020-21.
• Learn about other reliable boring biz’s:
contrarian-thinking.ck.page/130-boring-bizs
RAISE
You found a biz to buy.
And it's recession-resistant...
Now we raise prices with increased value.
You found a biz to buy.
And it's recession-resistant...
Now we raise prices with increased value.
SMBs keep the same prices for years despite inflation.
You can up prices by 10-30%.
Sounds shocking. But we don’t bat an eye when RE investors do it.
You can up prices by 10-30%.
Sounds shocking. But we don’t bat an eye when RE investors do it.
Your action items:
• Do the math, can you grow this business WITHOUT new offerings?
• Calculate a reasonable price adjustment for current products.
• Account for churn – if you raise prices by 30%, but lose 20% of customers...
Do you still profit?
• Do the math, can you grow this business WITHOUT new offerings?
• Calculate a reasonable price adjustment for current products.
• Account for churn – if you raise prices by 30%, but lose 20% of customers...
Do you still profit?
TECH
Add technology to the biz’s offerings.
Most small businesses are tech-backward.
An okay website and some 5-star reviews can do wonders for revenue.
Add technology to the biz’s offerings.
Most small businesses are tech-backward.
An okay website and some 5-star reviews can do wonders for revenue.
Your action items:
• Do a tech audit - add Jobber, ServiceTitan, etc.
• Throw the fax machine out a window.
• Add a system for reviews and SEO.
• Add a social media strategy.
• Do a tech audit - add Jobber, ServiceTitan, etc.
• Throw the fax machine out a window.
• Add a system for reviews and SEO.
• Add a social media strategy.
You don’t need brilliant ideas or a ton of money to turn a business around.
You just need an acquisition framework that actually WORKS.
You just need an acquisition framework that actually WORKS.
Mentions
See All
James Altucher @jaltucher
·
Nov 4, 2022
great thread