I had a business owner come in the other day with a ton of ideas on their plate. They wanted to buy a vacation home. They signed a deal with a large hotel chain and needed money for the deal. They had a bunch of ideas but didn’t know how to get there.
Where is “there” the big question.
When I asked what’s the end goal they said to sell my company.
But there wasn’t any specifics.
So, I asked…
After some deliberation we came to an answer of 5 to 7 years.
We arrived at a $5 Million sale.
Then we reverse engineer the process.
I asked how much was their current company worth? (I knew the answer, but most business owner’s don’t know.) They were spot with the value of the company.
We reverse engineered the numbers on the house and they decided against the purchase.
When your dreams and vision is clear decision become easy!
Now we got to work…
We had to decide on how to fund the deal with the large hotel chain.
Do we use the business owner’s cash?
Do we utilize bank financing?
I say keep your powder dry when you can use someone else’s money and not give up any ownership of your company.
We booked meetings with 5 banks.
We need to find which bank will fund the deal with the hotel and also ant to fund another $500K to $1 Million acquisition in the next 90 days.
Most entrepreneurs are great at dreaming up concepts, bringing them to life and monetizing the idea. Where they fall short is managing the business, growing the business and managing the finances.
This is undeserved in the market place.
Most business owners turn to CPAs. Most CPAs don’t understand cost ratios within a business, M&A strategies, tax savings strategies or exit strategies.
The biggest help you need with your business is…
Creating where you want to end up.
Reverse engineering how to get there.
We have a distinct 5-point process we take business owners through to create an exact financial and action road map to success.
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