Business Growth Strategies

The Most Successful Business Growth Strategy

Most people tend to assume that they can buy a business that is failing at a deep discount and then by rolling up their sleeves turn it into a profit making company. The failure rate for startup businesses is on average about 55 percent the last few years according to the Small Business Administration. The failure rate according to many business experts is more like 80 percent for those who decide that buying an established business with the hopes of turning it around and making a profit.

You Should Buy a Profitable Business

The obvious reason to buy a profitable business is that you as the owner will realize a positive cash flow from the very first day you take ownership. Owning a profitable business offers the owner a couple of things. First, a business making money usually has an established reputation worth its weight in gold. Second, sometimes you can find an owner who is willing to finance your deal on a profitable business.

How to Buy a Business Making Money

Before your sign the papers and buy what you hope is a profitable business you need to do some research.

No matter how this business might be presented to you for sale, make sure that it has been making money for at least the last five years.

You shouldn't buy a business that is netting under a $100,000 annually in pretax cash flow. Less than $100,000 in cash flow is just too small a business to be worth your time and energy.

Your research concerning finding a profitable company to buy should include knowing if they have a competitive advantage over their rivals. You need to verify that this money making business you are considering buying is offering something unique to their customers in their industry.



It is important throughout this business buying process to make sure that you keep your options open. Research what businesses are the leaders of their industries, even if that particular industry is having a difficult time in the current economy. The survivors are usually the top businesses in their industry during economic downturns and they usually will be the most profitable when the economy recovers.

Top Business Growth Strategies

When you have signed your name to your new business the real work will begin.

Many experts agree that it is important to try and negotiate with the seller of your business a contract to retain them to help consultant. After all, good owners have built the business reputation and can help you continue that with your new ownership.

Mismanagement will doom a business to failure faster than anything else. Hire a good manager who understands the business and the people. It is also important as the new owner of the business to try and retain the best talent.

Compensate the good employees that you have decided to keep well and they will continue under the transition to help your business. These people who have made this business profitable obviously understand the right way to market your business for future profits.

Business growth strategies

Business Growth Strategies



Learn more about business growth strategies.

How to Earn Facebook Credits

How to Earn Facebook Credits

You have probably been hearing all the hype and buzz around Facebook Credits this year. Before you can swing a cat three times over your head you'll be able to use Facebook credits.

Get Your Credits From Facebook.

You can get more info on the Get Facebook Credits page at Facebook.

Way cool. Instead of giving your money to a billionaire, earn your credits.

How to Buy a Business

Buy A Business With No Money

Part 1: The Plan (Plan To Buy A Business With No Money)

This article is part 1 of a series in teaching you how to buy a business without spending any money. Make sure you follow-up and read the series. I wish you the best and happy trails.

The Decision

So you have decided to buy a business. Congratulations. You are making a choice that will change your life forever. In my opinion, nothing is better than working for yourself. No boss or anyone telling you what to do is the best part. You decide where your business goes, no one else. It is the first step to financial freedom.

Now that you have decided to go into business for yourself, it's time to get down to the nitty-gritty. The first thing you want to do before you go any further is create a plan or blueprint. This way you know where you are going and how to get there.

But before we get into the plan, there are a few more decisions to make. I want you to look at these decisions and really think about them. Write down your answers on a piece of paper and keep it near.

• Where Are You Going - This is the single most important decision you make after you have decided to buy a business. Decide what you want from your business. Do you want to sell your business in 5 years for $1,000,000.00? Do you want to grow you business to multiple stores nationwide? Do you want to hire a management team and let someone else run the business for you? Decide where you are going before you start and it will make getting there a lot easier.
• What Is Your Vehicle - Now that you have decided where you are going, you need to decide what business you are going to go into. The common misconception is that you need to like the business that you go into. Not true. If your goal is to invest your money and time to make a profit and sell your business, you don't have to love the business you are in. It does make the work easier if you like the product or idea you are selling, but it is not necessary. Write down what business you would like to own on your piece of paper. If you can't think of one, no problem. There are so many businesses for sale you can choose among the masses.
• How Long Is Your Trip Going To Take - Decide how long you want to own your business. If you only want to own it for 3 years then write that down. If you want to own it for 10 years write that down. Remember, owning a business is for making money. Many businesses have a special and meaningful mission to carry out. But all of them are in the business of making money.

Now that you have made some more decisions, we are ready to take those decisions and create a plan. The plan that we are going to create is different from a business plan. A business plan is the plan that outlines the nuts and bolts of the business you have chosen and what your goals are and how you are going to accomplish them. We will go over business plans later in the series.

Outline Your Plan

Here is an outline of what your plan for buying a business without any money should look like:

• Find A Business
• Collect Information
• Speak To Owner

This is the information you need to put in your plan to buy a business.

Find A Business

There are many ways to find a business. Your goal here is to find a business for sale and as much information about that business as possible. Here is a list of ways you can find businesses for sale.

• The Newspaper - The newspaper is a source of local information. There are sections to keep you eye on. The first section to look at is the classified. You can often find businesses or equipment for sale.
• Business For Sale Sites - The are great websites to find businesses for sale.These sites are directories that business owners can sell their businesses on.
• Chamber Of Commerce - Your local Chamber of Commerce often has information regarding businesses in the area that are for sale. Check out the Chamber and ask questions.
• Driving Around - Simply driving around is a good way to find businesses for sale. Go to business parks or areas with heavy business populations and see what you can find.
• Talk To Business Owners - Talk to businesses themselves. Go to business owners and ask them if they know any businesses that are for sale. Usually business owners here what is going on around them in the way of business. You can find out a lot of information this way.

Collect Information

Now that you have found a business that is for sale, it is time to collect as much information about that business as possible. There are some things that you want to look for when collecting information. Here is a list of what to look for.

• Entrepreneur.com - This site is awesome. I spent so much time on this site when I was buying my first business. You can find just about any information you want about buying a business to information on a particular business you are interested in. There are great articles and the site really is an authority in teaching entrepreneurs how to be in business.
• Businesses - Talk to businesses. Let's say you were looking at buying a coffee shop and you wanted to collect information on the local scene. You wanted to know how business was in that area and the competition. A good way to get this information is to talk to businesses in the area. Simply go into the business and strike up a conversation. Ask questions. You will get a lot of information.
• The Leasing Company - Using the coffee shop analogy, the next place to get raw data is the leasing company. The building your business is in more times than not has a leasing company representing the owners. That company usually puts together a packet of information like residential and commercial numbers, traffic counts, median house salary and occupants, and all kinds of good projects as well.
• The Business Owner You Are Buying From - Collect as much information from the business owner you are buying from but don't use it as the only source. Remember, they are trying to sell their business. They are not going to tell you ugly parts. But it is a good way to get information about that business because they have run it.

Talk With The Owner

Speak to the owner about the business. Just like above, you want to ask as many questions about the business as you can. But the business owner may have reservations about divulging too much to you.They don't know you and they may have had 10 other people ask them the same questions already.

Either way, it is important to get some general information from the owner. Ask them how long the business has been there. Ask them what is working and what isn't. Ask them what their business is known for. Ask them how the business is. And finally, you have to ask, "Why are you selling?"

The likelihood that the business owner will give you the real reason is slim but it is still worth asking. They will tell you something. And the more research you do, the better. You want to try to figure out why they are selling because that will usually tell you the state of the business.

It is also important to talk to the owner because you want to build a relationship with them. We will go into this more further along in the series. For now, just be very nice and try to build a friendship with them. If you can't, no problem. But if you can, it will help.

So how do billionaires become billionaires?

One way to answer the question is by going straight to the source and asking a billionaire straight up. These dudes did it by asking young Australian billionaire Nathan Tinkler, "Yo dude, how did you become a billionaire?

How to Become a Billionaire: Advice From Carlos Slim

How Carlos Slim Become a Billionaire

How did Carlos Slim become a billionaire? The answer is intriguing to say the least. He basically bought lots of businesses up in addition to building a few.

Sardonic Mexicans jokingly ask one another: "Can you live one day without Slim?" The answer is probably not. Carlos Slim Helú is the richest man on the planet. Forbes magazine has calculated his worth at around 59 billion dollars and he is the principal owner of more than 200 companies, stretching from South America to the United States. His wealth comes from his 200 companies stretching from South America to the United States.

In Mexico, almost everything is connected to Carlos Slim. If you buy a car, a house, health insurance, a cup of coffee, or just use your cell phone, you are probably interacting with his business empire. So how did this first generation Mexican, son of Lebanese immigrants, supplant Bill Gates, the legendary founder of Microsoft, in this list of kings, as the most affluent of the super rich?The question is even more significant when you realize that Helú was born 67 years ago in a country where there is so much socioeconomic inequality and poverty, and yet made most of this incredible fortune inside his native Mexico.

How Carlos Slim Become a Billionaire

Slim started at the age of eight when his father asked him to help with the family store "The Orient Star" in downtown Mexico City. He later graduated from college with a degree in civil engineering and inherited some real estate from his parents.By then Slim Helú was showing his talent and passion to "make money." One of his first companies was Grupo Carso, a holding company which grew to include department stores, restaurants, real estate, chemical engineering, tobacco, telecommunications, Internet... almost everything!But Slim had bigger dreams. He made significant investments in Inbursa (stock exchange transactions, banking, pension funds), and then in diverse and renowned businesses such as Nacobre (Cooper production), Hoteles Calinda (tourism), Grupo Condumex (from electrical and telecommunications conductors, power generators and transformers, to automotive parts as well as electronic components), Cigatam (tobacco), and Sanborns - a very popular super-department store chain that includes clothing, household electronics, gift shops, restaurants, personal care shops, music and books all under one roof.

Slim became a "big fish" when he won the bid for the privatization of the state monopoly Teléfonos de Mexico (TELMEX) , the largest telecommunications business in Mexico, controlling 90 per cent of the land lines and with capital of more than $20 billion.Slim gained more "momentum" during the presidency of Jose Lopez Portillo (1976-1982), who nationalized the Mexican banks. At that time, many Mexican businessmen thought Mexico would nationalize important companies and so they sought to sell their holdings before they lost control. Slim took advantage of this and bought Seguros de Mexico, Mexico's largest insurer, for just $44 million, much less that its real value. Today the company is worth billions.In a recent interview with The Wall Street Journal, Slim said that "his success comes from spotting opportunities," but in addition to this, Slim knows very well how "putting together monopolies" can make real money. Other companies under the Slim umbrella are Telnor ,Prodigy, Telcel, America Movil Latin America, Saks Fifth Avenue, Sears Mexico, Compusa and Volaris .

How Carlos Slim Become a Billionaire

Slim was born comparatively well-off in a mostly poor country, and he had the intelligence and desire to multiply his inheritance into an incredible fortune.But what is the man like in his personal life? Carlos Slim likes to read self-improvement books, suffers from insomnia, and during those sleepless nights is known to read about technology, even though he doesn't use computers or cell phones.He enjoys hosting celebrities at his mansion in Mexico City, serving gourmet dishes and expensive wines. When he travels, his entire family goes with him and he asks to close entire hotels just for him and his "dearest."

He likes art so much and has such an impressive collection, that he opened the Soumaya Art Museum in honor of his wife, who died in 1999 from a kidney disease.Single women looking for a rich husband, pay attention: Slim is single and dating, but is in a steady relationship with a Mexican woman. However, one of his three sons, is single too! But if you want to get involved with the Slim fortune, be prepared to deal with his sons, grandchildren and the entire family, all of whom are waiting for their big "piece of pie."Meanwhile, most of the population of Mexico continues to live in poverty. According to The Wall Street Journal "Mr. Slim has made about $27 million a day while a fifth of Mexico gets by on less than two dollars per day." So, we ask again: "Can Mexico live without Slim?" or is it "can Slim live without Mexico?"

Find out more about Carlos Slim's strategy for becoming a billionaire.

How to Buy a Business: A/R vs A/P

How to Buy a Business

It’s likely that the business you are looking to buy will have customers who owe that business money for services already rendered or goods already purchased. The money that customers still owe the business is called “Accounts Receivable” or A/R.

Smaller businesses with A/R usually give their customers 30 days to pay once the goods or services have been delivered.

In most small business sales (where the selling price is less than $500,000) the seller typically keeps these accounts receivable.

From the buyers perspective this may seem like an unfair situation. After all, the selling price is usually based on the yearly performance of the business. But if you don’t get to collect the existing A/R, than in the first year you will only receive 11 months of revenue.

Here is the thing you need to keep in mind. In most small business sales, the seller delivers the business to the buyer “free and clear”. This means that, while you are not entitled to collect the A/R, you are not responsible for the debts or liabilities of the business either.

Just as the business will have accounts receivable that they have yet to collect, they will almost always have accounts payable – expenses they have incurred but have yet to pay.

How to Buy a Business

The key benefit to selling the business “free and clear” is simplicity. If you insist on including the A/R in the sale price you will have to negotiate the value of those accounts with the seller.

After all, you are not going to pay full face value for those accounts receivable. While most businesses give 30 days for customers to pay, almost every business will have some A/R that are 60, even 90, days old. So in addition to all the other details you and the seller must agree upon, you will have to agree on the value of those 60 and 90 day old (past due) accounts.

Then, you will have to invest the time and effort to collect those past due accounts.

Also, if you want to receive the benefits of the account receivable, you will have to assume the liability for accounts payable.

So, if you find a business that you really want to buy, your best chance of negotiating a deal with the owner is to simplify by removing any discussion of account receivable and accounts payable. Let the seller collect the proceeds from existing sales and let him worry about paying all the existing bills.