Thread by @benkellyone

I'm 35.

I own 7 businesses (last year, they made $7,000,000+)

To spread the wealth...

Here’s the most in-depth training I've ever created on small business acquisition (my gift to you):

SMBmarket(.)com will be your best friend.

It has tons of listings for owners who are looking to sell their small businesses.

The listings will mention:

• SDE
• FF&E
• EBIDTA

Search for a business making $10K+/mo in cash flow & has been profitable for >5 years.

🔍 SMBmarket(.)com → Search: *Your Area* / Service Businesses → Price filter = $500k to $1M → More Filters → Cashflow = Min. $10k.

Some businesses to look at:

• Financial Services
• Pool Cleaning
• Laundromat
• Plumbing
• HVAC

Before starting the buying process…

Determine your goal.

For me, I hire a GM who runs day-to-day while I focus on increasing cash flow.

Some people enjoy working day-to-day.

This is your chance to customize your role.

You shouldn't make any offers until you've secured your financing options.

There are 4 financing options:

• Buying with your own cash
• SBA loan
• Private investor
• Seller financing

You can use multiple methods or just one.

When speaking to lenders (banks/investors)...

1) Position yourself as a "safe" bet.
2) Tell them the type of business you want to acquire & why.
3) Come prepared with your last 3 years of tax returns & W2 pay stubs.
4) Prepare a statement that lists your assets & liabilities.

If you can do these things...

You'll be ahead of 99% of borrowers.

You'll want to get the tax returns & P&Ls from the last 3 years.

Profit should be increasing steadily and P&Ls should be relatively consistent with no crazy fluctuations.

Pro Tip:

Hire an accountant to audit the numbers.

They can review these KPIs too:

• SDE (Seller discretionary earnings)
• EBIDTA (Earnings before interest, taxes, depreciation, and amortization)
• FF&E (Furniture, fixtures & equipment)

Essentially, this means...

→ Total profit
→ Cash flow
→ Movable assets

For making an offer...

Take the average SDE from the last 3 years (ex: $450k)

Multiply it by 2.5x = $1,125,000 and round down to $1,000,000 (that's your starting offer).

We can purchase this for $0 down by talking to our SBA lender & asking for the business to be qualified on the 7a program.

This allows us to get a private investor to cover the down payment, so we're $0 out of pocket.

Let me explain...

You give a private investor 15% equity & in return, they pay the 10% down payment.

In effect, they’re getting an extra 5% equity for nothing.

On a $450k/yr business...

Your investor makes $5,250/mo passively, which is a 57% CoC return annually.

But you still cash flow $29k/mo...

→ Hire a General Manager ($5k/mo)
→ Your salary ($10k/mo)
→ $14k/mo for the business to grow

Congratulations!

You now own a small business.

If you want to learn more about how you can acquire a boring business for yourself...

📲 DM me "Biz" and I'll show you how
🤝 Follow me → @benkellyone for more!

Thanks for being here!

If you want to learn exactly how you can purchase your first small business with little to no money down...

DM me "SMB"

I'll take you through my step-by-step strategy to help you acquire a lucrative business.