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Business owner Franchise 500 list rank: 170 Initial financial investment: $8 https://www.bellevue.edu/about/media-relations/stories/2018-10-franchising-expert-to-help,639 to $296,598 Preliminary franchise cost: $3,500 New systems in 2016: -1 units (-0.1 percent) Chester's has one of the largest varieties for preliminary investment-- you will require to invest anywhere in between $8,000 to practically $300,000. Nevertheless, depending upon your existing possessions and plans for the fried-chicken franchise, there's a possibility you could begin a new location for less than five figures, which makes it worth investigating.
With any sort of organisation financial investment, the idea of "finest" is individual. Discovering a good franchise needs to be based on numerous factors such as personal interests, family obligations, just how much requirements to be invested, location, and so on that just you can really answer. However, that does not imply that you should not do your research and thoroughly veterinarian the franchises you are thinking about.
Let's examine what you should try to find in each location to discover the very best franchise for you. Our franchise experts utilized the above criteria and have recognized 10 of the top franchises to consider buying or opening in 2020. Russo's New York Pizzeria ClaimTek Systems Hard Bean Coffee Tutor Doctor American Organisation Systems Midas Healthier 4U Vending Sonic Drive-In Mayweather Boxing + Fitness Accessible Home Healthcare The above franchises were chosen based upon their alignment with the 5 pillars: 1) start-up expenses and charges, 2) size and growth, 3) brand name strength, 4) support, and 5) financial strength and stability.
They have actually constructed over 100 independently owned and operated coffee stores across America over the past twenty years. Tutor Medical professional is a leader in offering individually additional education to trainees & adults through offering in-home tutoring to families. Join the fastest-growing home-based tutoring franchise worldwide. American Company Systems is the fastest way to start your own company in medical billing and they're the only company with Live Training, Lifetime Support, and a 100% Money-Back Warranty.
As a Midas franchisee, you can experience the benefits of joining among the most acknowledged names in the automotive market. Their around the world brand name awareness offers you and your company an one-upmanship. Much Healthier 4U Vending is the premier delivery system for healthier eating options for individuals on the go.
Join the Tipping Point of the Selling Market! The World Leader In Healthy Vending! For over 60 years, SONIC has assisted business owners end up being significant members of their community by realizing their complete potential as part of among the most renowned QSR brands not just in the quick food industry however in the nation.
Accessible House Healthcare has actually established a proven business design that will help you benefit from among the fastest growing markets while making the right home care solutions available to your neighbors. So maybe the concern isn't "What's the best franchise to buy?" Perhaps the concern actually is "What's the very best franchise to purchase for me?" How do you identify which of the thousands of franchises readily available is the finest franchise for you? It's a process, and that procedure involves examining your personal situation versus specific elements of franchising.
The FDD, which all franchises are required to offer to a potential franchisee no less than two weeks prior to any contracts are signed, covers various aspects of the franchise operation from expenses to obligations and more. Items 5 through 7, specifically, cover the initial investment and ongoing expenses of a franchise.
Fit Body Boot Camp has a formula for success that works.
No fitness experience is needed with this franchise opportunity. When you were young and inexperienced, these three words were the only thing you looked for in a help-wanted ad. After all, if there's one thing you had when looking for your first job, it was inexperience.
And remember, not all franchise organisations turn a profit immediately. You may need to depend on cost savings or your existing task to cover costs up until your franchise starts to make a profit. Keep in mind: Larger isn't always much better - Fit Body Boot Camp. Simply since the franchise has a great deal of areas doesn't mean it's going to be popular where you are.
Franchisors are likewise high-level research study sources. They invest resources into knowing which territories can support their brands. If a franchisor is amusing inquiries for new franchisees in your location, it's a good indicator that its information is revealing a favorable match. Does the franchise know who they are? Not every chance is going to be McDonald's or Dunkin Donuts.
Fit Body Boot Camp has shown us remarkable rate of growth within the personal training franchise market. Fit Body Boot Camp is an awesome business for any workout entrepreneur to start with. Fit Body Boot Camp is a gym/fitness franchise with a small initial investment.The top rated personal training franchise to buy is Fit Body Boot Camp. Get in touch with Fit Body Boot Camp to locate a spot for you to launch your own fitness club.
You're going to have to put in the work to be effective, however part of the draw of being a franchisee is that there is an entity there to help direct you. Within Product 11 of the FDD, there is a summary of the support a franchise provides to its franchisees, including thorough training.
Also, in addition to learning about the franchise brand name's strength as kept in mind above, it's smart to utilize the list of franchisees in the Exhibitions area to talk with individuals who are currently living the life you wish to live as the franchisee of a specific brand. While they might not inform you everything, doing your due diligence by speaking to present franchisees will offer a much better concept of what to expect from the franchisor.
" Opening a franchise is typically a commitment of ten years or more, so look at the franchisor's history and note how long the franchise has been in organisation, how well the franchise system has fared through economic modifications and how well its service model changes to meet the needs of a developing customer dynamic," says Joe Schumacher, CEO of Goddard Systems, Inc.
For example, it's a warning if a franchisor is excessively aggressive about marking down initial fees and/or royalties (beyond the common discount rates for military veterans or those in specific markets desirable to the franchisor for expansion). Although it would be a positive to you at first, franchising is a business system that requires a certain level of financial capital as fuel.
If the franchise isn't getting adequate money in royalties, it runs the risk of not being able to properly stay up to date with sustaining the franchise through the years.
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Today’s episode of the podcast, Robert Hirsch from Freedom Factory discusses “Is There a Simple Business Valuation Calculator”.#business #entrepreneurship #startbusiness https://t.co/Z9GGGLlma9
— Freedom Factory (@FreedomFactory7) May 25, 2020
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From https://twitter.com/FreedomFactory7/status/1264975028392792067
Today’s episode of the podcast, Robert Hirsch from Freedom
Factory discusses “Is There a Simple Business Valuation
Calculator”.
Listen to the podcast, watch the video, or read the
transcript below.
Additional Videos From Freedom Factory
Strategies for Getting Your Company Ready to Sell
How are Brokers Different from Investment Bankers?
Transcript of Podcast
Hey, it’s Robert from Freedom Factory. I want to talk to you
about a little pain point that we have in our business, and it’s a
business valuation calculator. People look at real estate and tools
like Zillow, or they look at Kelly blue book on cars and they say,
why don’t you have a business valuation calculator?
You’ve been doing this for so long, and the reality is we’d love
to. Problem is it’s hard. And so there are a couple of really good
baselines, like revenue and earnings and we can talk about
guidelines and what that looks like but what makes us so hard to do
is you can take two businesses, same revenue, same earnings, worth
vastly different multiples. Literally two, three X each other, not
even close. And that’s because of the intangibles.
There’s so many things to a business – intellectual
property, defensibility software that really make it a more complex
discussion than just, Hey, what are your earnings and you’re worth
five times that hypothetically. Now we’re working with it. It’s
probably a little early to talk about it, but we’re working with an
amazing company to solve this problem and we’re going to have a
solution soon. But in the interim, if you have any questions about
how do you maximize the value of your business or what your
business is worth, why don’t you give us a call at Freedom Factory.
We look forward to speaking with you soon.
Thank you so much for watching. Please hit like and subscribe.
Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver
Also, Follow Freedom Factory here
Best Business
Brokers – video portfolio
Available on Youtube:
Learn more about the managing partners, Tyler Tysdal,
and Robert Hirsch.
From https://freedomfactory.libsyn.com/is-there-a-simple-business-valuation-calculator
One of your goals in selling your business is to ensure you will be able to sell it at the highest price possible. To do this, you need first to learn what your business is worth. Fortunately, there are readily available business valuation calculators online. However, you have to be wary as not all of them can give a close to the perfect estimate. Stay away from complicated business valuation calculators. Take advantage of simple business valuation calculators, something that would make you easily understand the value of your business. Visit Freedom Factory’s official website here: https://www.freedomfactory.com/
Download the podcast here http://freedomfactory.libsyn.com/is-there-a-simple-business-valuation-calculator
Contact:
Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver
Also, Follow Freedom Factory here
https://vimeopro.com/freedomfactory/business-brokers
http://freedomfactory.libsyn.com
https://www.facebook.com/Freedom-Factory-112201923642080
https://www.linkedin.com/company/freedomfactory/
https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/
Additional Videos to learn how to sell your business.
How Can I Live My Best Life by Selling My Business https://www.youtube.com/watch?v=GFCMOn4iLdM
Big Mistakes Sellers Make Before Selling Your Business https://www.youtube.com/watch?v=3Q2EOr0kLMQ
How to Buy a Business When You Don’t Have the Cash https://www.youtube.com/watch?v=CbZ2MvOLUio
When Should I Tell Employees if I am Thinking About Selling? https://www.youtube.com/watch?v=ssIEqo6ldEo
#freedomfactory #sellyourbusiness #businessbrokers
Robert Hirsch – https://roberthirsch.com
Additional information on managing partner Tyler Tysdal https://tylertysdal.com
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Today’s episode of the podcast, Robert Hirsch from Freedom Factory discusses “How Can I Live My Best Life by Selling My Business”. Listen to the podcast or watch the video here https://t.co/cjfV0s4X0p https://t.co/7wUDe6FoWB
— Freedom Factory (@FreedomFactory7) May 20, 2020
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From https://twitter.com/FreedomFactory7/status/1263164986161053696
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Today’s episode of the podcast, Robert Hirsch from Freedom Factory discusses “When Should I Tell Employees if I am Thinking About Selling”. #business #entrepreneurship #startbusiness https://t.co/WDUVAsUhuU
— Freedom Factory (@FreedomFactory7) May 20, 2020
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From https://twitter.com/FreedomFactory7/status/1263145808582623233
Selling your business might not be an easy decision to make, especially if you put it up from the ground up. Sometimes, it is not always the monetary aspects that matter but the attachment that you have with your business. Just because you are letting go of your business does not necessarily mean you are saying goodbye to it for good. Sometimes selling your company can open doors of opportunity – in fact, a far more significant opportunity than you can imagine. You can live your best life by selling your business. Visit Freedom Factory’s official website here: https://www.freedomfactory.com/
Do you want to sell your business? Contact Freedom Factory for a business appraisal.
Contact:
Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver
Also, Follow Freedom Factory here
https://vimeopro.com/freedomfactory/business-brokers
http://freedomfactory.libsyn.com
https://www.facebook.com/Freedom-Factory-112201923642080
https://www.linkedin.com/company/freedomfactory/
https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/
Additional Videos to learn how to sell your business.
Strategy to Sell My Business if I am in Vistage https://www.youtube.com/watch?v=ly1b3iXCeZ4
How Does Recasting My Financials Affect the Value of My Business? https://www.youtube.com/watch?v=D5KXK92fVyU
How to Sell Your Share of a Business if You Have Other Partners https://www.youtube.com/watch?v=UysRO1i8eho
How do I Approach a Competitor to Buy My Business? https://www.youtube.com/watch?v=jnJVXvxwOnU
#freedomfactory #sellyourbusiness #businessbrokers
Robert Hirsch – https://roberthirsch.com
Additional information on managing partner Tyler Tysdal https://tylertysdal.com
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From https://www.youtube.com/watch?v=GFCMOn4iLdM
From https://www.facebook.com/permalink.php?story_fbid=156976302497975&id=112201923642080
Today’s episode of the podcast, Robert Hirsch from Freedom Factory discusses “Big Mistakes Sellers Make Before Selling Your Business”.#business #entrepreneurship #startbusiness https://t.co/jK4Vhbey2t
— Freedom Factory (@FreedomFactory7) May 18, 2020
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From https://twitter.com/FreedomFactory7/status/1262439175611125761
Selling a business is more than just waiting for a prospective buyer and sealing the deal. There is more into it. Often, sellers make a mistake and are not even aware of it. As a result, they miss out on great deals and just settle on what is available. As someone selling your business, you can’t afford to settle for less than you deserved. It is your business, after all. You invested not just money, but time, blood, sweat, and tears. You surely want to sell it at the highest value possible. Visit Freedom Factory’s official website here: https://www.freedomfactory.com/
Do you want to sell your business? Contact Freedom Factory for a business appraisal.
Contact:
Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver
Also, Follow Freedom Factory here
https://vimeopro.com/freedomfactory/business-brokers
http://freedomfactory.libsyn.com
https://www.facebook.com/Freedom-Factory-112201923642080
https://www.linkedin.com/company/freedomfactory/
https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/
Additional Videos to learn how to sell your business.
The Art and Science of Selling Your Business https://www.youtube.com/watch?v=AxZ8_KlBgT4
What Are the Types of Business Buyers? https://www.youtube.com/watch?v=Rn-WNMMg8G0
When Should I Tell Employees if I am Thinking About Selling? https://www.youtube.com/watch?v=ssIEqo6ldEo
Secret Value of Selling Your E-Commerce or Digital Business https://www.youtube.com/watch?v=vBwGyGHl0ZE
#freedomfactory #sellyourbusiness #businessbrokers
Robert Hirsch – https://roberthirsch.com
Additional information on managing partner Tyler Tysdal https://tylertysdal.com
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From https://www.youtube.com/watch?v=3Q2EOr0kLMQ
From https://www.facebook.com/permalink.php?story_fbid=155941189268153&id=112201923642080
Today’s episode of the podcast, Robert Hirsch from Freedom Factory discusses “The Art and Science of Selling Your Business.” #business #entrepreneurship #startbusiness https://t.co/VoWfVjANU5
— Freedom Factory (@FreedomFactory7) May 15, 2020
https://platform.twitter.com/widgets.js
From https://twitter.com/FreedomFactory7/status/1261347293564788737
Today’s episode of the podcast, Robert Hirsch from Freedom
Factory discusses “The Art and Science of Selling Your
Business”.
Listen to the podcast, watch the video, or read the
transcript below.
Additional Videos From Freedom Factory
How Does Recasting My Financials Affect the Value of My
Business?
Can I Sell My Business By Myself or do I Need Help?
Transcript of Podcast
Probably the most frequently asked question that I get is how do
you determine the selling price of your business? And the reality
is its part art and part science. I’ll go over some of the science,
then I’ll go over a little bit of the art, and again, experience
goes a long way.
Coming back to the science part of it, some of the really easy
pieces are are what’s your earnings? Earnings is often expressed in
EBITDA or your earnings before income tax depreciation and
amortization. We convert that into seller’s discretionary cash flow
for all of our clients. And again, when you’re paying your taxes,
EBITDA is a game of minimization. The discretionary cash flow
is a game of maximization or accurately reflecting all the cash
flow that your business generates.
You’re also going to have things like industry multiples, and
sometimes there’s little nuance things like if your e-commerce
business versus a fulfilled by Amazon business, you’re going to get
a really different multiple. So we want to make sure to position it
the right way. Some of the other things, industry codes, we had a
client and the name of their business was excavation.
Turns out that excavation companies are valued at two to two and
a half plus assets. When I say two to two and a half, that’s a
multiple of earnings. Will construction companies of that size are
about four and a half to five. And it turned out that although they
started as an excavation company, over 80% of their revenues came
as a construction company.
So we repositioned it and that helped the industry code. But
whatever we do with all these numbers, we make sure to look at
market comparable and what’s the market looking like? What are the
best sales that we can hang our hat on? How does a bank value it?
Is it going to be an SBA type business? And now all of a sudden
we’re starting to get into the art.
My name’s Robert Hirsch, and I’m the founder here at Freedom
Factory. All we do is help entrepreneurs sell businesses. That’s
100% of our life. When I wake up in the morning, I’m looking at
market comps, I’m looking at sales, I’m looking at, okay, how do we
maximize the sales price of our business and really work as a
partner?
So. Whether you’re a physical company that’s been around for 20
years or a digital company that’s been around for two, we’re going
to look at all the science and combine it with the art to help you
maximize your sales price. Give us a, call it Freedom Factory
today. I look forward to speaking with you soon.
Thank you so much for watching. Please like and
subscribe and we’ll see you soon.
Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver
Also, Follow Freedom Factory here
Best Business
Brokers – video portfolio
Available on Youtube:
Learn more about the managing partners, Tyler Tysdal,
and Robert Hirsch.
From http://freedomfactory.libsyn.com/the-art-and-science-of-selling-your-business
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Today’s episode of the podcast, Robert Hirsch from Freedom Factory discusses “How to Buy a Business When You Don’t Have the Cash”. #business #entrepreneurship #startbusiness https://t.co/VkDhds5HDy
— Freedom Factory (@FreedomFactory7) May 13, 2020
https://platform.twitter.com/widgets.js
From https://twitter.com/FreedomFactory7/status/1260642794768683009
Today’s episode of the podcast, Robert Hirsch from Freedom
Factory discusses “How to Buy a Business When You Don’t Have the
Cash”.
listen to the podcast, watch the video or read the
transcript below.
Additional Videos From Freedom Factory
Strategy to Sell My Business if I am in Vistage
Strategy to Sell My Business if I am in YPO (Young Presidents’
Organization)
Transcript of Podcast
Hi, Robert from Freedom Factory here. And I want to talk to you
about a question that we get from buyers of a lot, which is, well,
what if I don’t have $1 million check to write? And the reality is
most of us don’t have $1 million check to write, but how do you buy
a business if you don’t have $1 million check? And that’s what
we’re going to jump into today.
So it’s my personal belief that small businesses are the most
undervalued asset class on the entire planet. If you’re buying a
stock and you’re buying it at a 30 times multiple or 30 times price
to earnings ratio, which is the value of the company.
When you’re looking at a small business, you’re looking at three
to five times multiple, which obviously is significantly different
than the stock market. If you have a special set of skills, which
is how do you run a small business, there couldn’t be a more
undervalued asset class, and I think the opportunities are
limitless.
And I think one of the big reasons that many people don’t
consider buying it is they say, well, I don’t have $1 million check
to write. And that’s true for most of us. And so let me talk to you
about some options. There there are many more, but I’m just going
to go into some early ones. Most businesses sell with some sort of
seller financing, especially if the seller believes in their
business.
So sometimes you’ll have a 30% note, 50% note, sometimes an 80%
note to the seller. And what that means is the seller is carrying a
note of the financing or carrying part of the financing on the
business, and it’s secured by the business. So if you didn’t make
the payments on that note, the seller would come back and take
their asset, and that’s okay with them.
So usually we see some sort of seller financing, and obviously
there’s no bank requirements, no prequalification. All the seller
has to do is say yes. Another option that we do is we’ve been
selling businesses for an of a long time. And so we have several
relationships with SBA lenders across the country.
And usually, we can get a go or no-go in 24 to 48 hours. And if
a business is a good SBA business or small business administration,
which essentially is a government-subsidized loan, then it can give
you up to 80% of the value. So you can buy $1 million company with
a check of only a few hundred thousand dollars. That’s a great way
to go as well.
I’ve even taken over a business where I have not spent any money
out of pocket and people say, well, why would you do that? It
was a tea business and as some of you know, I used to work in the
search engine industry and had an early search engine in Silicon
Valley and I was considered a search engine expert 10 years ago in
my career. Well, there was a tea company that acquired all their
customers through search engine optimization. And so they wanted to
work with me, but I wasn’t willing to write them a check. So I took
over the business. I didn’t even make a payment for the first six
months to make sure it would work, and I eventually bought it and I
didn’t even write a check for a penny out of pocket. All I did was
fund the operating capital needs of the company.
So there are lots of ways that you can buy a business without
writing $1 million check. In fact, most of the businesses aren’t
one buyer and one seller writing a seven or eight-figure check. And
there’s lots of ways to be able to do that. Of course, you can
raise investment, you can syndicate, there’s lots of options.
And if you have any questions about what’s the best way to
either buy a seller finance business or what makes a great
candidate for an SBA business. Why don’t you give us a call at
Freedom Factory? If you’ve even thought about buying a business,
there’s never been a better time than there is today. We look
forward to speaking with you soon.
Thank you so much for watching. Please like and subscribe.
Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver
Also, Follow Freedom Factory here
Best Business
Brokers – video portfolio
Available on Youtube:
Learn more about the managing partners, Tyler Tysdal,
and Robert Hirsch.
From http://freedomfactory.libsyn.com/how-to-buy-a-business-when-you-dont-have-the-cash
When it comes to buying a business, having cash at hand is a must. It hinders the majority of buyers as not all of them have enough money at hand. what they didn’t know is there are many different ways to buy a business. You can even buy one without cash at hand. some successful business owners out there don’t have millions when they purchased their business. What they have are tested and proven effective strategies. There are brokerage firms out there that will guide you in buying a business. Visit Freedom Factory’s official website here: https://www.freedomfactory.com/
Download the podcast here http://freedomfactory.libsyn.com/how-to-buy-a-business-when-you-dont-have-the-cash
Contact:
Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver
Also, Follow Freedom Factory here
https://vimeopro.com/freedomfactory/business-brokers
http://freedomfactory.libsyn.com
https://www.facebook.com/Freedom-Factory-112201923642080
https://www.linkedin.com/company/freedomfactory/
https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/
Additional Videos to learn how to sell your business.
What Contract Structure Should I Use to Sell My Business? https://www.youtube.com/watch?v=spimuAbsLgw
How Does Recasting My Financials Affect the Value of My Business? https://www.youtube.com/watch?v=D5KXK92fVyU
Strategy to Sell My Business if I am in Tiger 21 https://www.youtube.com/watch?v=ld070Suj_K0
How to Stay Involved in My Business But Sell the Majority https://www.youtube.com/watch?v=mNQpAwCjf48
#freedomfactory #sellyourbusiness #businessbrokers
Robert Hirsch – https://roberthirsch.com
Additional information on managing partner Tyler Tysdal https://tylertysdal.com
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From https://www.facebook.com/permalink.php?story_fbid=154821932713412&id=112201923642080
Today’s episode of the podcast, Robert Hirsch from Freedom Factory discusses “What Are the Types of Business Buyers”.#business #entrepreneurship #startbusiness https://t.co/2H7g96WqrS
— Freedom Factory (@FreedomFactory7) May 11, 2020
https://platform.twitter.com/widgets.js
From https://twitter.com/FreedomFactory7/status/1259890687002267650
Today’s episode of the podcast, Robert Hirsch from Freedom
Factory discusses “What Are the Types of Business Buyers”.
Listen to the podcast, watch the video, or read the
transcript below.
Additional Videos From Freedom Factory
Strategy to Sell My Business if I am in Tiger 21
What Type Of Contract Do I Need To Sell My Business?
Transcript of Podcast
Hi, Robert Hirsch from Freedom Factory. And I just had this
really interesting question, and it was from a buyer of a business.
And in one of my other videos I was talking about different kinds
of buyers, right? There’s first-time buyers, entrepreneurial
buyers, strategic buyers, and we’ll go into a whole host of them.
But, but he said, well, what kind of buyer am I? I’m not sure. And
I made the joke, I said, well, that means you’re a first-time
buyer. He was actually a serial entrepreneur and we got a good kick
out of it. But I wanted to talk about the different types of buyers
for businesses. And this is important not just to buyers, but to
sellers because we’re going to have different campaigns for
different styles of buyers.
So let’s talk about the first one. And this is what I
affectionately refer to as the first time buyer. These are people
that traditionally leaving the corporate world. They’ve got a great
education and they’re saying, should I buy a business or should I
buy a franchise? And sometimes franchises look good to people
coming from the corporate world because they have systems and
processes and they sell franchises often sell on fear. They say,
well, you can’t get a big account if you’re not part of a national
company with a national marketing campaign, you’re going to get a
really big leg up.
In my experience, that hasn’t been true. We’ve sold a lot of
franchisees in the past. But the reality is when someone makes a
decision for you, they’re not making a decision based upon the sign
behind you or the name they want you. And so if you’re a sign maker
and they go to a national sign franchise, they’re not going to say,
well, that sign franchise is great signs.
They’ll go with them. They say, you know, Robert, I really trust
you and I think you can make a kick-butt sign for me. Let’s do
this. And so I often recommend to my corporate kind of people
making the big transition and the big jump to look at businesses
that have been around for a long history, that have a great track
record and great sales and really good systems and processes. So
that makes a transition as easy as possible. But that’s really the
first time buyer. And so businesses like that service businesses
are great, product businesses are good, but ultimately you want
something where your skillset is really going to add to the
business.
The second type of buyer is serial entrepreneurs like me and
I’ve been doing this for 29 years. I’ve been in every business I
can think of, and some have gone well and some haven’t, but overall
more have done well than haven’t. And I usually transition every
two to five years. A lot of entrepreneurs, you do your best and
let’s say you’re going to 100% a year or 150% a year, and all of a
sudden you dropped a 10 or 15% and it turns more operational. For
me, when it gets operational, there are people better suited to it
than me, so I’m happy to sell it to them and get in something where
I can be more strategic.
And so as an entrepreneur or a serial entrepreneur, I like to
look for strategic businesses where you can really dramatically
shift the line, maybe something where you’re buying it fairly
inexpensively and someone owns a job and doesn’t own a business. I
talk about the difference between that, but the bottom line is if
you don’t know if you own a job or a business, you just stopped
showing up.
And if the revenue goes up, you own a business. If it goes down,
you own a job. And there’s a lot of value to be created.
Transitioning people owning jobs into owning businesses. Other
strategic buyers like that, if for example, let’s say you came out
of an industry that you have a lot of connections in and you can
really leverage it in this next business. I’ve seen entrepreneurs
buy businesses for five times earnings. So let’s just say in this
example, it’s $1 million and it throws $200,000 200,000 times five
is a million dollars, and that’s its market cap or what it’s worth.
And they buy it and they can pay it off and sometimes is as quickly
as three or four months.
We had a travel technology business. The guy came out of the
travel technology space. He made three calls. All of a sudden he’s
on Orbitz, Expedia, and Travelocity, and the business has grown six
X in a fraction of a year. Amazing things can be done there, and
that’s kind of the entrepreneurial or the strategic buyer.
We also have the financial buyer, which is private equity or
venture capital, and they can be buying it for different reasons.
They can buy it as a standalone. The good news is I love dealing
with private equity and venture capital groups because usually they
have a set of deal criteria. They’re very specific on, they’re
looking forward to meet five criteria. We need to have debt to
equity of this. We need to have earnings of this. We need to be
able to buy it on these terms. And if your business fits that
buyer, it’s usually a very quick and smooth transaction. No
fundraising, no SBA loans, nothing along those lines.
But sometimes when you’re a seller, you want to put yourself in
the buyer’s shoes. So for example, we’ve helped private equity
groups do roll-ups, and what a roll up is you buy a company, maybe
that’s at the center of it. We did a roll up business in the
software as a service space. They would buy it for the customer set
and for the software. And then they buy the three major
competitors, and let’s say they’re doing $1 million in earnings, so
$1 million in earnings, and let’s say in this multiple, they’re
probably doing four maybe five times that earning. So the cap is
with four or 5 million.
Well, if you stick those three companies together, now a company
doing 3 million might be worth six to seven. So what they bought
for 12 million all of a sudden is worth 20 million. So that type of
financial engineering is usually going to come from a financial
buyer or private equity or venture capital group.
The final buyer is a strategic buyer and strategic buyers are
you usually buying for a few things? Right? They’re buying gross
margin because that margin if they’re acquiring more than 80% of
the company, goes directly into their financials, but sometimes
they’re buying to either Aqua hire, meaning they’re trying to get
the people and the skillset and being able to do that. We just saw
that recently with one of our deals.
We’ve also seen the financial buyer, the strategic buyer come in
and buy companies because they just wanted to own it. For example,
recently a ski rack manufacturer bought a rooftop tent manufacturer
and the ski rack manufacturer was a hundred times bigger. Certainly
could have reversed engineered these tents, but they wanted the
people, the skillset, and they wanted their customer base.
And the great news about strategic buyers, they’re usually less
worried about the multiple of earnings and they’re more worried
about buying a great company. So if you’re not sure what type of
buyer you are, just go through it and figure out which one fits
best. And if you have questions on this or anything even similar to
it, just give us a call at Freedom Factory and please hit like and
subscribe.
Thank you so much for spending your valuable time with us and
we’ll see you soon. Please like and
subscribe.
Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver
Also, Follow Freedom Factory here
Best Business
Brokers – video portfolio
Available on Youtube:
Learn more about the managing partners, Tyler Tysdal,
and Robert Hirsch.
From http://freedomfactory.libsyn.com/what-are-the-types-of-business-buyers
There are many types of business buyers, and it is essential to know them so that you will know what strategies you are going to use to maximize the sale value of your business. Knowing what type of buyers are interested in your business isn’t easy. You can even gauge it by just merely looking at the potential buyers. A thorough interview and building rapport can be done to accurately assess the buyers and come up with a win-win strategy. Visit Freedom Factory’s official website here: https://www.freedomfactory.com/
Download the podcast here http://freedomfactory.libsyn.com/what-are-the-types-of-business-buyers
Contact:
Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver
Also, Follow Freedom Factory here
https://vimeopro.com/freedomfactory/business-brokers
http://freedomfactory.libsyn.com
https://www.facebook.com/Freedom-Factory-112201923642080
https://www.linkedin.com/company/freedomfactory/
https://www.youtube.com/channel/UCXUrv3qYNsR8NjZEWRDch5Q/
Additional Videos to learn how to sell your business.
Strategy to Sell My Business if I am in Vistage https://www.youtube.com/watch?v=ly1b3iXCeZ4
How Does Recasting My Financials Affect the Value of My Business? https://www.youtube.com/watch?v=D5KXK92fVyU
How do I Approach a Competitor to Buy My Business? https://www.youtube.com/watch?v=jnJVXvxwOnU
Time to Find Freedom and Buy Your Own Business https://www.youtube.com/watch?v=gVzsFNncjpE
#freedomfactory #sellyourbusiness #businessbrokers
Robert Hirsch – https://roberthirsch.com
Additional information on managing partner Tyler Tysdal https://tylertysdal.com
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From https://www.youtube.com/watch?v=Rn-WNMMg8G0
From https://www.facebook.com/permalink.php?story_fbid=153932359469036&id=112201923642080
Today’s episode of the podcast, Robert Hirsch from Freedom Factory discusses “Strategy to Sell My Business if I am in Vistage”.#business #entrepreneurship #startbusiness https://t.co/BKBkhqvx5q
— Freedom Factory (@FreedomFactory7) May 8, 2020
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From https://twitter.com/FreedomFactory7/status/1258814141818638338
Today’s episode of the podcast, Robert Hirsch from Freedom
Factory discusses “Strategy to Sell My Business if I am in
Vistage”.
Listen to the podcast, watch the video, or read the
transcript below.
Additional Videos From Freedom Factory
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Transcript of Podcast
Hey, it’s Robert from Freedom Factory here, and if you’re a
member of Vistage and you want to sell your business, I’d love to
talk to you about that. So you obviously realize that executive
coaching and peer learning groups can be a big advantage in your
growth. There are really two things that have helped underpin my
entrepreneurial success.
One is having a peer learning group, and second is having a
mentor and really learning how to groom that mentor-mentee
relationship. And if you think back to school or university, those
were the two things that you got, right? You had a peer learning
group or your classmates and you had a teacher.
That type of structure can really allow you to grow and it’s
huge. Knowing how to groom that mentor and mentee relationship.
When it comes to selling a business or buying a business, usually
here will, I know somebody, but just because you know someone
doesn’t mean that it’s the right person, or more importantly, how
are they going to maximize the value of your biggest assets?
Here at Freedom Factory, all we do is help our fellow
entrepreneurs buy and sell their companies. If you’re looking to
sell your business or you’re looking to buy, or you have questions
of how do I do the analysis or what is my business worth, or what
does the market look like, or what is market timing or anything,
why don’t you, give us a call here at Freedom Factory?
We’re all entrepreneurs and we only work with entrepreneurs to
maximize the value of your biggest assets. I’m Robert Harish, and
we look forward to speaking with you soon.
Thank you so much for watching. Please hit like and
subscribe.
Freedom Factory
5500 Greenwood Plaza Blvd., Ste 230
Greenwood Village, CO 80111
Phone: 844-MAX-VALUE (844-629-8258)
https://www.freedomfactory.com/
https://g.page/freedom-factory-denver
Also, Follow Freedom Factory here
Best Business
Brokers – video portfolio
Available on Youtube:
Learn more about the managing partners, Tyler Tysdal,
and Robert Hirsch.
From http://freedomfactory.libsyn.com/strategy-to-sell-my-business-if-i-am-in-vistage
