1 Million Dollars in 365 days…

As much as I would like to go on about the current state of affairs in the world, I’m not going to. The thing that matters for me, is the current state of affairs in my head.

Currently I am looking at purchasing another business. Since the liquidation of Paymex, I have had countless businesses ideas, both good and bad. Although I don’t really think any of them are bad ideas, perhaps just not the right time for me to attempt to carry them out.

Then I remembered - “There’s no need to re-invent the wheel”. I began to search for existing business opportunities where I felt that I could use my skills to turn a business into a profitable well-oiled machine. Similarly to what Michael Gerber talks about in the E-myth.

So what do you look for? If someone had a profitable business why would they sell it? Perhaps for health reasons, maybe stress levels are too much? Is this something you should take on then?

I think that there are a lot of opportunities out there at the moment, where ever you are in this world.  More specifically in the business market. I also believe there are vast opportunities in the property market, however that’s a topic for another time.

What to consider when looking to buy a business:

When you do find something that interests you, you need to do a few things first.

• Most importantly, you need to do due diligence. This is basically finding out all you can about the business. Go back as far as you can with the financial records, are there any trends, even as far back as seven years?
• One key factor is that you have to make sure that you understand exactly how the business makes money. If you plan to run a profitable business this is essential!
• Do you have the skills necessary to run the business effectively? Are you going to run the business yourself or are you going to employ someone to do it for you?
• Do the numbers. What is your expected ROI (Return on Investment)? What is your strategic objective for the business?
• What is your gut feeling about it? I believe that this is one of those factors that people often overlook as they don’t believe it holds too much credibility. I firmly believe you should always go with your instinct, or at least listen to it.

So what opportunities can you find in your local business district? Once you find an opportunity that you believe cannot be passed up - do your home work and then make a decision. You should have no problems with finding funding for the existing business, especially when you are buying assets as part of the deal.

Purchasing an existing business (and making it profitable) is a great way to leverage your time and create more passive income streams. You also have the option of selling it later down the track for capital gains. Whatever you decide - remember the main point - to take action! Good luck!