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The Sales Whisperer® blog is a compilation of podcasts—The Sales Podcast and The CRM Sushi Podcast—How-To articles and videos, inspirational posts, a little humor, and a whole lot of common sense. Subscribe here to have Wes Schaeffer's musings sent to your inbox for free from time to time. It's the best way to keep your sanity in this world of flash, gimmicks, and goo-roos.

How An Entrepreneur Buys Successful Businesses With Carl Allen

Posted by Wes Schaeffer | May 29

Learn how to buy a successful business with no cash of your own

Stream below or right click here to download the episode. 

[ LISTEN NOW ON ITUNES ]

Sales Tips you'll learn in The Sales Podcast...

  • What recommended action steps do you have for the first 100 days as a business owner?
  • What is the value of buying a business rather than founding one?
  • What criteria do you recommend people have when deciding what kind of business to buy?
  • Why do some business partners thrive while others tear their businesses apart?
  • How can you evaluate whether a business is worth buying?
  • How much of buying a small business is based on psychology vs. numbers?
  • When selling your business, what is the main criteria owners look for?
  • How did teaching others help you refine your own business buying systems?
  • Grew up on Wall Street in corporate mergers and acquisitions in 1992
  • Did private equity
  • Invested in a software company and sold to HP and went with the sale
  • 10 years ago his wife went into labor 4 weeks early while he was in Moscow and he almost missed the birth of his child
  • "Small deals are where it's at. There are over two million businesses for sale in North America. Only 1 in 13 will actually sell."
  • In 2017 more than six million entrepreneurs started a business but 96% will fail within 10 years.
  • The Leveraged Buyout—LBO—use financing against the business itself.
  • The best deals are off-market, i.e., without using brokers.
  • Brokers are trained to sell businesses to competitors to get more money for the seller.
  • He owns whole or part of 17 businesses.
  • Find a business that is a good business but the seller is in some form of distress.
  • He targets businesses between $1 to $3 million in revenue so individuals usually target those types of businesses.
  • 80% of small business owners won't list their business for sale so their competitors and staff don't know about what's going on.
  • Entrepreneurs think it's cool to go start something from scratch.
  • Around 2016 people were encouraging him to teach his processes.
  • He prefers asset-based lending so the bank doesn't look at my credit worthiness.
    • Real estate
    • Plant and resources
    • Receivables are key
  • Lately the SBA is stepping up with a $1 trillion fund and they'll loan you 90% of the deal and you can use the 10% cash from the business
    • My credit score must be at least 690
  • How to find these businesses
    • Social media
      • LinkedIn groups
    • Networking
      • Spouse
      • CPA
      • Attorney
      • Banker
    • Attend events
      • Research attendees and build rapport
      • Ask for advice on how to buy a business like yours (wiggle the bait)
      • They may want to sell their business or they may give me referrals
    • Direct approach
      • Use Hoover's for free at your library to get a list
      • Message the targeted businesses
    • Brokers...eventually
      • They overprice deals
      • Let it sit for some time—nine months or more
  • According to Biz Buy Sell the average multiple was 1.94x earnings
    • EBITDA 
    • Free cash flow or SDE—Seller's Discretionary Earnings
  • Buy what resonates with you
    • Experience
    • Passion
  • Sales can and does apply across all industries
  • NinjaAcquisitions.com/free
  • Be an owner/manager or an owner/investor
  • Give the GMs a percent of ownership so they have some skin in the game

Related Articles:

Sell Or Die

Listen To Previous Episodes of The Sales Podcast  

Links Mentioned In The Sales Podcast

 If you need more help growing your sales, check out the following resources scattered around this site and a few others I operate, such as:

CLICK HERE TO MAKE EVERY SALE

Topics: The Sales Podcast, Podcast, Entrepreneur, Carl Allen

Written by Wes Schaeffer

The Reassuringly Expensive, Ruthlessly Pragmatic pig-headed entrepreneur dedicated to discovering proven, transferable, effective tools for creating inbound sales so he can help you automate, integrate, and dominate your niche.

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Welcome to The Sales Whisperer®

Wes Schaeffer, The Sales Whisperer® helps you grow your sales. Sales | Marketing | Technology

Great marketing makes sales easy. Great selling makes great marketing possible. Great technology delivering great marketing and sales makes you rich. The World of The Whisperer is a community of doers, of action takers, of those who walk their talk. I'm thrilled that you are here. ~Wes Schaeffer

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