Comments on: The 4 absolutely vital questions to ask before buying ANY business … http://7million7years.com/2008/03/25/the-4-absolutely-vital-questions-to-ask-before-buying-any-business/ How to make 7 million in 7 years ... Thu, 18 Mar 2010 02:02:07 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: 4 more questions to ask when buying a business … « How to Make 7 Million in 7 Years™ http://7million7years.com/2008/03/25/the-4-absolutely-vital-questions-to-ask-before-buying-any-business/comment-page-1/#comment-534 4 more questions to ask when buying a business … « How to Make 7 Million in 7 Years™ Fri, 15 May 2009 12:59:48 +0000 http://7million7years.wordpress.com/?p=89#comment-534 [...] 7million, 7million7years, Business, millionaire, money, Rich, Starting Out, wealth I gave you the 4 absolutely vital questions to ask before buying ANY business …, and here are some more, in response to Jeff’s quest to buy a business: This week I found an [...] [...] 7million, 7million7years, Business, millionaire, money, Rich, Starting Out, wealth I gave you the 4 absolutely vital questions to ask before buying ANY business …, and here are some more, in response to Jeff’s quest to buy a business: This week I found an [...]

]]> By: Some financial advice for the blogging community … « How to Make 7 Million in 7 Years™ http://7million7years.com/2008/03/25/the-4-absolutely-vital-questions-to-ask-before-buying-any-business/comment-page-1/#comment-533 Some financial advice for the blogging community … « How to Make 7 Million in 7 Years™ Thu, 01 May 2008 17:30:33 +0000 http://7million7years.wordpress.com/?p=89#comment-533 [...] is probably a bad ’business’ in strict return-on-time-invested terms - I would never pursue it as a business; so many other activities have the potential to return much more and scale much better … and, [...] [...] is probably a bad ’business’ in strict return-on-time-invested terms – I would never pursue it as a business; so many other activities have the potential to return much more and scale much better … and, [...]

]]> By: AJC http://7million7years.com/2008/03/25/the-4-absolutely-vital-questions-to-ask-before-buying-any-business/comment-page-1/#comment-532 AJC Thu, 27 Mar 2008 15:53:24 +0000 http://7million7years.wordpress.com/?p=89#comment-532 @ Crystalblurry - absolutely! This quesion gives you 'negotiating power' IF you can find the REAL reason why the owner would want to sell. @ Crystalblurry – absolutely! This quesion gives you ‘negotiating power’ IF you can find the REAL reason why the owner would want to sell.

]]> By: crystalblurry http://7million7years.com/2008/03/25/the-4-absolutely-vital-questions-to-ask-before-buying-any-business/comment-page-1/#comment-531 crystalblurry Thu, 27 Mar 2008 11:52:35 +0000 http://7million7years.wordpress.com/?p=89#comment-531 I also usually ask why they are selling the business. Chances are they are not going to be completely honest with you if things are looking bad but, atleast you can get an idea. I also usually ask why they are selling the business. Chances are they are not going to be completely honest with you if things are looking bad but, atleast you can get an idea.

]]> By: AJC http://7million7years.com/2008/03/25/the-4-absolutely-vital-questions-to-ask-before-buying-any-business/comment-page-1/#comment-530 AJC Wed, 26 Mar 2008 14:07:52 +0000 http://7million7years.wordpress.com/?p=89#comment-530 @ Jason - Who is your eventual buyer? Make sure you know what type of exit you are aiming for and when and aim all of your efforts at that. Setting yourself up for low-capital growth (by eliminating stores) can be a great way to go. I love that you "created systems for doing everything" ... it was one of the keys to my business success; also, gives a buyer great confidence if they see 'books of systems' (even if they are largely electronic, print a Master Set off for 'show off' value). Also, if you ever decide to get back into retail and franchise, your ability to document clear operating systems will be key. Good Luck! @ Jason – Who is your eventual buyer? Make sure you know what type of exit you are aiming for and when and aim all of your efforts at that. Setting yourself up for low-capital growth (by eliminating stores) can be a great way to go.

I love that you “created systems for doing everything” … it was one of the keys to my business success; also, gives a buyer great confidence if they see ‘books of systems’ (even if they are largely electronic, print a Master Set off for ’show off’ value).

Also, if you ever decide to get back into retail and franchise, your ability to document clear operating systems will be key. Good Luck!

]]> By: Jason Dragon http://7million7years.com/2008/03/25/the-4-absolutely-vital-questions-to-ask-before-buying-any-business/comment-page-1/#comment-529 Jason Dragon Wed, 26 Mar 2008 10:42:00 +0000 http://7million7years.wordpress.com/?p=89#comment-529 Great blog yet again. For many small businesses people ask way to much. The owner is attached to his business and wants what he feels it is worth. Most are worth only dimes on the dollar. For me, I started a computer company in 1998, and thought I knew it all but I quickly learned so much more. I moved that store a few doors down and this time designed in the way I wanted all future stores to be like. I created systems for doing everything. Then I set out on opening more stores. By then it was 2004 and the market for computers was crashing, the wars by the big companies erased all the profits in the industry. By 2005 we were back to one store. By the end of 2007 we decided that the retail storefront was not the way to go. We moved to a much lower rent area, and just serve corporate and online customers, the ones with the best profits. The wars are over and the profits are back in the computer industry, and with our reduced cost, decade of experience we are ready to explode. All we need now is a capital infusion to get us to the next level. Even if we only get .5% of the US market that is still huge. Any ideas? Jason Dragon Great blog yet again. For many small businesses people ask way to much. The owner is attached to his business and wants what he feels it is worth. Most are worth only dimes on the dollar.

For me, I started a computer company in 1998, and thought I knew it all but I quickly learned so much more. I moved that store a few doors down and this time designed in the way I wanted all future stores to be like. I created systems for doing everything. Then I set out on opening more stores. By then it was 2004 and the market for computers was crashing, the wars by the big companies erased all the profits in the industry. By 2005 we were back to one store. By the end of 2007 we decided that the retail storefront was not the way to go. We moved to a much lower rent area, and just serve corporate and online customers, the ones with the best profits. The wars are over and the profits are back in the computer industry, and with our reduced cost, decade of experience we are ready to explode. All we need now is a capital infusion to get us to the next level. Even if we only get .5% of the US market that is still huge.

Any ideas?

Jason Dragon

]]> By: AJC http://7million7years.com/2008/03/25/the-4-absolutely-vital-questions-to-ask-before-buying-any-business/comment-page-1/#comment-528 AJC Tue, 25 Mar 2008 21:09:25 +0000 http://7million7years.wordpress.com/?p=89#comment-528 @ Moneymonk - you're right ... buying stock and buying a company is essentially the same thing - to paraphrase Warren Buffet: "you are better off buying a great company at a fair price than a fair company at a great price". For a small business, growth potential is critical (esp. if you intend to sell). @ Joshua H - A subject for another post ... thanks for the idea (in the meantime, word of mouth or newspapers as as good as any. @ Moneymonk – you’re right … buying stock and buying a company is essentially the same thing – to paraphrase Warren Buffet: “you are better off buying a great company at a fair price than a fair company at a great price”. For a small business, growth potential is critical (esp. if you intend to sell).

@ Joshua H – A subject for another post … thanks for the idea (in the meantime, word of mouth or newspapers as as good as any.

]]> By: Joshua H. http://7million7years.com/2008/03/25/the-4-absolutely-vital-questions-to-ask-before-buying-any-business/comment-page-1/#comment-527 Joshua H. Tue, 25 Mar 2008 18:36:34 +0000 http://7million7years.wordpress.com/?p=89#comment-527 Interesting post, but how would you go about finding and investing in either startup or existing private companies? Interesting post, but how would you go about finding and investing in either startup or existing private companies?

]]> By: Moneymonk http://7million7years.com/2008/03/25/the-4-absolutely-vital-questions-to-ask-before-buying-any-business/comment-page-1/#comment-526 Moneymonk Tue, 25 Mar 2008 17:25:34 +0000 http://7million7years.wordpress.com/?p=89#comment-526 "you have to be able to differentiate between a good company and a good price." Good advice. Hershey is a good company however they have mgmt issues. Same with Disney. There are a lot of good companies, however they are not all at a good price “you have to be able to differentiate between a good company and a good price.”

Good advice. Hershey is a good company however they have mgmt issues. Same with Disney.

There are a lot of good companies, however they are not all at a good price

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