Making $100K/Year by Buying Businesses “No One Wants”
Published: 2024-06-30
Status:
Analyzed
Published: 2024-06-30
Status:
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Small business acquisitions are predicted to yield 20-30% ROI in their first year.
"when I can go find a small business to buy that'll make me you know 20 to 30% Roi just the first year"
Pending
The speaker aims to double weekly sales from $10,000 to $20,000 for each acquired business, making them "million dollar stores".
"I'm wanting to grow this business from you know $10,000 a week to $20,000 a week in sales because I want all these to be million dollar stores"
Pending
The speaker and his team are looking to acquire a 40-unit portfolio of franchise restaurants to build a large holding company.
"right now we're looking at a a 40 unit portfolio of franchise restaurants that we'd like to acquire and put that in our portfolio and eventually build this up to a large holding company"
Pending
Matt Deboth will re-enter the real estate market once market conditions become more favorable for buying.
"he has pivoted away from buying real estate for the time being and what he's doing to build up Capital until the market shifts and he's ready to buy again"
Pending
The current period presents a strong opportunity to acquire small businesses due to baby boomers retiring and selling, which Matt is capitalizing on.
"right now is the time to buy with all the Baby Boomers retiring people wanting to sell their businesses"
Pending
Matt anticipates achieving a 20-30% ROI within the first year from his small business acquisitions.
"I can go find a small business to buy that'll make me you know 20 to 30% Roi just the first year"
Pending
Matt plans to increase sales for his small businesses from $10,000 to $20,000 per week, aiming for each store to reach $1 million in annual sales.
"I'm wanting to grow this business from you know $10,000 a week to $20,000 a week in sales because I want all these to be million dollar stores"
Pending
Matt projects an annual net profit of $80,000 to $100,000 per year from his acquired small businesses.
"you're looking at anywhere between 80 to $100,000 net profit per year off of these businesses"
Pending
Matt is accumulating cash from his profitable small businesses, holding it to invest in real estate when market conditions improve.
"That's why right now I'm just stacking cash from these businesses and putting it on the sidelines and waiting for the real estate deals to come"
Pending
Matt intends to acquire the underlying real estate properties for the small businesses he owns, rather than leasing.
"I'm trying to acquire the real estate that the businesses are in"
Pending
Matt's long-term objective is to build a large portfolio of profitable businesses, using the cash flow from existing businesses to fund further acquisitions.
"The overall goal is to hold as many profitable businesses in a portfolio as possible ... build each little business to produce its own amount of cash to put on the sidelines to buy more businesses"
Pending
Matt predicts that by accumulating 5-10 business locations in a single market, he can hire an "above store leader" and transition to a more passive role of managing managers.
"if you can get to 5 10 locations in one market you can hire somebody to overlook everything for you and then you're just managing the managers from there"
Pending
Matt plans to implement a hierarchical management structure where specialized leaders oversee 5 stores of a particular franchise type, with more versatile managers at higher levels overseeing regional operations.
"we're trying to keep one above store leader on each franchise so if we have you know a hamburger franchise we're trying to keep that one person managing five of those in one market ... the higher higher we go up on the chain of management the more versatile the people become so we can have one person that can manage you know five managers on the west coast we could have one person manage the five managers on the east coast and then from there we just kind of pyramid up where at the top of the chain that person's looking at you know two people below them those two people have three people below them"
Pending
Matt intends to evolve his investment strategy towards building a large portfolio of small businesses and engaging in private equity acquisitions.
"I'm kind of concentrating more on these small businesses to build up a large portfolio and looking more to go into the private Equity portion of business"
Pending
Matt's goal is to become a private equity buyer, specifically looking to acquire a 40-unit portfolio of franchise restaurants, to build a large holding company, and then shift his focus back to real estate.
"I want to be the private Equity that buys people out so right now we're looking at a a 40 unit portfolio of franchise restaurants that we'd like to acquire and put that in our portfolio and eventually build this up to a large holding company where it's just like real estate we have people do every angle of the operations and then I can concentrate move from there and go back into real estate and concentrate on that sector"
Pending