Here's a commercial cleaning business ($90B industry) for sale in Hawaii.

$1.875M purchase price
$541k annual cash flow
Beautiful Hawaii

Let's dig in to the listing and see what looks good, what is questionable, and whether or not this is a good opportunity 🌴☀️ First, here is a one pager given by the broker. (Actually a lot more info here than you'll find in most listings)

A few things off the bat:

3.5x SDE is a reasonable valuation range.
$200k of working capital is included
$74k in vehicles
$150k in other equipment

Google just launched a Calendly killer.

And it's free.

Here's how to use it: Scheduling is a pain. Google has integrated a solution inside of gmail.

The first step is to select the calendar icon at the bottom of your drafted email and click "Offer times you're free"

Buying a business is a great way to move into the top 1% ($800k+).

But things have changed.

Here's how I would go about buying a business in 2023. Let's start by stating what I think should be obvious:

Getting into the top 1% won't be easy. And it shouldn't be.

But it's doable.

The man who turned $1M into $90M in just 3 years, Reginald Lewis.

He made his fortune buying boring, cash-flowing businesses.

This continued until he was the first black person to own a $1B company.

Here's the story of his 1st deal (a 90:1 return): Lewis started off as a corporate lawyer in BigLaw.

Allegedly, he's the only person admitted to Harvard Law without applying.

He later started his own firm helping clients acquire businesses with government backed loans (MESBICs).

Sound familiar? @KHendersonCo @SMB_Attorney

Here's a commercial cleaning business ($90B industry) for sale in Hawaii.

$1.875M purchase price
$541k annual cash flow
Beautiful Hawaii

Let's dig in to the listing and see what looks good, what is questionable, and whether or not this is a good opportunity 🌴☀️ First, here is a one pager given by the broker. (Actually a lot more info here than you'll find in most listings)

A few things off the bat:

3.5x SDE is a reasonable valuation range.
$200k of working capital is included
$74k in vehicles
$150k in other equipment

So I'll admit that I was an Al skeptic.

But, Chat-GPT & Al saved my business over $100,000.

I am fully converted.

Here's a real use case for Chat-GPT in business: One of the hardest parts of running a business is documenting everything.

When an employee leaves, they usually take a ton of knowledge with them.

My job since acquiring a business in August has been to put all that knowledge on paper.

So you heard that $7 trillion of businesses will be sold by 2030?

Here are the resources you *must have* before buying a business: Before you DM @girdley @BrentBeshore @StrongpointRich @RegZeller @SteveWiesnerSMB @ChandlerReedSMB @sbabmarks @SMB_Attorney @bentigg or @SullyBusiness asking for their time on how to acquire and run a business...

Read these:

Many business owners struggle to understand accounting.

Here's a simple breakdown to help: I am seeing far too many small business owners not understand the basics of accounting.

It is the backbone of your financial reporting.

And the only way to know how healthy your business is.

How to buy a business in 2023: As we approach the new year, many will set some lofty goals.

If you have become interested in buying a business here is a goal on how to prepare yourself in the upcoming year.

With over $7 Trillion of businesses to be sold in the next 10 years, it's a bit of a gold rush.

There are 2 main methods for acquiring a business.

Let's break down the differences and choose the best option: What is search?

Search is a bit of a figure of speech used to describe the process of "searching" and eventually acquiring a business.

Many on Twitter are searchers or former searches who are continually looking for new businesses to buy.

One of the best ways to grow a net worth of $10M+ is buying a business.

Here's a breakdown of how it works: Let's just take a 10 year timeframe for this.

Because:

a) you don't live forever
b) 10 years of hard+smart work should set you up for life.

Acquiring a business can be an amazing way to build wealth.

But there's a ton to learn before you can buy one.

Here are 17 people that you should absolutely follow in the space to learn more: @EndresenHeather & @LisaGForrest at Live Oak Bank.

Heather & Lisa are lenders with the top SBA bank in the country.

Their team provides a ton of resources for the searcher community through their office hours.

I've completed over $100M+ in buy side transactions.

You should never buy, sell or invest in a business, without a quality data room.

Here's how to build a world class data room for your next deal: What's a Data Room?

Data rooms are virtual spaces that contain all vital information regarding a company or a transaction.

There's a lot of back and forth in deal mode.

A well structured room allows everyone to have critical info at all times.

They also save a ton of time!

If you want to buy a business, you'll need to know how to value it.

Should you use SDE? EBITDA? Cash Flow?

I'll break down the 3 terms and the differences with each: When looking to acquire a business, there are many terms thrown out that can be confusing.

"This biz is 3x cash flow"

"We value this at 5x EBITDA"

etc etc.

It's all a bunch of jargon but here's what you need to know.

Buying a business can be life changing.

But how do you know that you’re not acquiring a bad business?

A due diligence guide that will help you identify GREAT businesses to acquire: I teamed up with @SievaKozinsky who buys businesses at Enduring Ventures to write this guide.

The purpose of due diligence is to understand a business well enough to get to a ‘hell yes’ or a ‘hell no’ on acquiring.

It can be a spiderweb of pathways to get to your end goal.

Business books are overrated.

The real stories are in the biographies.

Here are my 9 favorite: 1. Walt Disney: An American Original

Disney's incredible story from being fired as a newspaper cartoonist to creating some of the worlds most iconic characters.
amazon.com/Walt-Disney-Am…

I've sat in rooms where $100M+ deals were negotiated.

Here's how the best negotiators in the world win: At Fairfield, we have to negotiate with business owners often.

All are different and it is much more art than science.

But with the right tools, you can come out of negotiations with more gained than given.

Meetings suck.

But there’s a way to increase productivity AND have less meetings.

Here's a guide on how to eliminate 70% of your meeting time: At my last employer, I was a rebel.

I did all of these things and it was completely against the culture.

But I didn't care. I hated sitting in meetings.

If you're still reading, I imagine you do too.

Over 70% of businesses fail.

But some proven successful ones are here on Twitter.

Here are 9 tactical guides to help you join the other 30%: 100k/yr Christmas Lights Installation Biz by @SqueegeeGod

https://twitter.com/SqueegeeGod/status/1449069877382168577?s=20

I've spent my career investing.

A bad investment can derail your life.

Here are the 35 best investments you should make in yourself: 1/ Good Friends

Good friends are supportive, motivating, and honest with you.

Keep them around.

Starbucks isn't a coffee company.

It's actually a bank that sells coffee.

Starbucks has built a $12 billion bank right under your nose.

Here's how they did it: Starbucks operates over 33,000 stores in 76 countries.

They did $29B in revenue in 2021.

But 41% of their revenue is exclusively gift card sales.

The gift card is a flywheel for their business.