Thread by @benkellyone

If I had $25k to invest…

I wouldn’t buy stocks.
I wouldn’t buy real estate.
I wouldn’t even buy Bitcoin.

I’d do exactly what my clients at JP Morgan did.

I’ll expose it for you:

As soon as I started at JP Morgan…

It became painfully obvious to me:

We were serving our clients because THEY were the ones with all the money.

So, what did they do?

They stole Private Equity’s playbook.

AKA…

- Buying small businesses
- Upgrading the operations
- Pocketing all the cash flow

I wanted in.

Long story short…

I read a book called “Buy Then Build,” so I could learn the strategy and replicate it.

After I acquired 3 businesses? I quit.

Here’s your $1M blueprint:

Step 1: Market Research.

Start with SMBMarket(dot)com.

It's the internet's most active business-for-sale marketplace.

You'll see terms like:

- Price (how much it is)
- Revenue (incoming cash)
- Cashflow (profit - expenses)

Adjust the filters to your liking.

Step 2: Discover Your Type.

There are 1,000s of businesses to choose from.

Ask yourself:

- What businesses do I visit often?
- Which industries do I like?
- What has longevity?

And you aren't limited to one type either.

Step 3: Determine Your Goal.

Every investor is different.

If you want a more "hands-on" experience, something like a parking lot might not be for you.

Determine what you're looking for.

Then get after it.

Step 4: Set Your Financing.

Let's figure out your acquisition strategy.

These questions will help:

- Are you buying outright?
- Do you need a bank to finance?
- Are you bringing an investor with you?

I like to work structure deals with lending, seller financing and investors to get as little down as possible.

Step 5: Start Making Calls.

The more calls the merrier.

Steal these tips:

- Jot down as many notes as you can
- Know that you have the power
- Forget about the emotions

I promise this will ease the process.

Step 6: Make An Offer.

Now, you MUST look at the last 3 years of "owner's total profit" (SDE).

Multiply the average by 2x-4x (deal dependent).

- Round down
- Make your offer
- Negotiate and wait

Practice expectation management.

Step 7: Structure The Purchase.

So I just mentioned that I like to do these deals with little to $0 out of my own pocket.

(Yes, it is possible, but not easy).

Find an investor willing to put up the down payment and give them more equity in return.

The extra cash flow will cover you.

Don't worry.

Step 8: Do Your Due Diligence.

This is actually the most important part because you haven't closed yet.

Make sure you:

- Hire an accountant
- Talk to the employees
- Find a like-minded owner
- Check out their social media

Do NOT get lazy here, this is vital.

Step 9: Create a Post-Close Plan.

The first 3 months of ownership will set the tone for your success (this is huge).

You'll need:

• Insurance
• Email access
• Website control
• Employee contracts
• Social media accounts

Just to name a few things…

Step 10: Exhale and Close.

It's time to put the pen to the paper!

Congratulations.

You've done the due diligence.
You've done the research.
You've done the work.

Your generational wealth journey has begun…

Want to learn how I buy profitable businesses using other people's money?

📲 DM me "Biz" and I'll show you how