Entrepreneurialism
Buy A Business Without Paying For An Attorney, CPA, Airline Ticket Or Even A Taxi Cab Ride
After half a century of buying businesses, people still ask me why I spend so much of my time investing in buying businesses instead of real estate, the stock market and other things like that.
And I always tell them -- and this is absolutely true -- the reason I don't do anything but buy businesses is because, in 50 years of doing so, I still have yet to come across a better investment than buying a business. In fact, nothing else even comes close in terms of both return on investment and risk.
Let?s put it this way. If you get any financing at all, the cap rate on the average business with some
financing is about 60 percent. What I mean by "cap rate" is you?re getting 60 percent of your money back
every year.
So, if you invest $100,000, you?re going to get $60,000 back a year. I mean, on real estate you invest a $100,000 and you?re going to get 10,000 back -- if that. So, buying a business gets you six times what you normally get with real estate and blows it right out of the water as an investment.
But it?s actually more than that because the amount you normally invest (if you use investor financing) is as close as you can get to zero in most cases.
And while it's true you need to have an attorney and a CPA help you through the whole process, if you understand what to say to them, they?ll "ride along" with you, not billing you until after you actually buy a business -- so you can pay them with money from the business you bought, and not your own money. You may also have expenses for traveling to different cities, too, if you choose to go long distance. But even with that, you just make sure you tell your investors that at the close of escrow, you're pulling back all the money you invested. Which they will almost never complain or care about.
Again, I have yet to see anything else that even comes close to buying a business as far as return on investment and risk go.
Arthur B. Hamel has bought over 200 businesses in the past 50 years, and is a well-known author, consultant, investor, business owner, and dynamic lecturer who has shared the stage with such business greats as Robert Allen of "No Money Down" fame. For the past 20 years Art has taught thousands of people around the world -- even so-called "little guys" with no formal education or money -- how to quickly and easily buy large, multi-million dollar businesses with no credit, banks or prior business experience. He has recently decided to share his unique business-buying secrets and tactics free of charge at: http://arthurhamel.com
Art Hamel
Tags: buy a business, buy sell business, Franchise, business, business plan, business opportunity, investSimilar articles
Buy A Business Using This "Best Kept Secret" And Take Your Pick Of Any Business You Want
If you're looking for good, quality businesses for sale, you can look in all kinds of places. You can look on the Internet, ask other people in town if they know any businesses for sale, you can even put an ad in the paper. Read more →Buy A Business With This Secret And Making Money Will Be As Easy As Taking Candy From A Baby
One of the best things you can ever do for a business you buy is keep the original owner on board, and running things exactly as he was before. The only question is, if an owner does stay on, what do you offer him as far as salary, benefits, stock, etc? Read more →Buying an Existing Business
One alternative to starting a business ?from scratch? is to buy an existing business. To some extent, buying a business is less risky because its operating history provides meaningful data on its chances of success under our concept. Read more →Can You Make Money From a Web Business?
Can you make money on the internet? Is the internet really making people rich? Well, like most stories, it isn?t all true but there is a basis of truth to it. Read more →Aphorism
You only have to do a very few things right in your life so long as you don't do too many things wrong.
Warren Buffett