WEBVTT

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These people actually spend less money, they have less desire to spend money.

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Welcome to the game where we talk about how to get more customers, how to make more

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customers, how to keep them longer, and the many failures and lessons we have learned

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along the way.

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I hope you enjoy and subscribe.

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What is going on everyone?

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Today we're going to talk about a fun topic, which is I got a message yesterday from

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somebody who said, you know, who's dead broke and was like, what do I do, all that kind

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of stuff.

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I think I've talked in the past, I'll probably do another one about when I've lost everything,

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what I did step by step to I think that after I lost everything the next month I did $110,000

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in sales.

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And that was not sales, that was cash collected in the next 30 days.

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So like you absolutely just need skills, you can have nothing else in your life, and a

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beautiful thing is that no government can take it from you, no person can take your skills

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from you, no divorce, those are always your own, which is something that I don't know,

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for some reason feels magical to me.

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And so one of the things that I've seen as I've kind of, you know, moved up, and I'm

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not saying that arrogantly, just developed, progressed, whatever, is that the people who

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I surround myself with now have more money than the people that I surround myself when

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I was early on in my career.

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And what's ironic is that these people actually spend less money.

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They have less desire to spend money.

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And they find ways to acquire things for less money out of pocket.

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And that's always really interesting to me.

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And so right now I think there's, you know, if you were to look at, quote, investment opportunities,

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right, you could, you could, you know, invest in buying a house.

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So let's say, let's say you've got, I'll do two scenarios, all right.

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Let's say you've got $50,000, all right.

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And you're like, okay, I'm thinking about buying a house, right.

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And I think for a first house, you might only have to put 10% down.

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I'm not sure.

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It's 10 or 20.

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You don't remember.

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But anyways, let's just say 10 for, for sake of whatever.

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So 500,000 or house, all right.

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You put 10% down and then you get the mortgage, right.

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You get the liability of the mortgage payment every month.

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You'd be.

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Now, if you were to, if you were to, and let's say that in order for you to save that,

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you've been making, I don't know, 60 grand a year and you've been saving that for, you

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know, five years, something like that.

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Now, let's look at an alternative scenario where you are still making that same amount

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of money, 60, and you saved up 50, and instead of buying a house, you have a long conversation

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with your spouse and you say, or maybe you don't have a spouse, whatever, with yourself.

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And you say, I wonder how much money I could get for this money.

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Ah, interesting, right.

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And so you, you, you leave through the businesses that are in your area and by the way, the best

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way to do this, one, you should contact brokers, not necessarily to buy a business but to

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get an idea of some of the businesses that are in the area and what price ranges look

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like.

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But if you buy from a broker, you're going to pay retail.

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You could definitely negotiate a deal and I'll tell you one of the deals that I did that

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was really good at the end of this.

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But anyways, so let's say you, you know, you reach out to some businesses, things that

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you like or enjoy, you feel like you have some specialized knowledge in.

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And you find out that there's a business that's doing, let's say, I don't know, $250,000

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a year in, in profit, right.

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And because it's a small, local owned business and you're not going to pay retail for it, you

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get it for two and a half, you know, times earnings, right, which would be, which two

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and a half times, it's five, 25, hopefully, I think, two and a half, no, that's six,

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25, excuse me, $625,000 is what a business, you might pay for businesses doing $250,000

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a year in profit, all right.

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Now here's where it's interesting, right.

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So I had an early mentor who taught me this negotiation tactic that I've used pretty

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much throughout my entire life since this moment and I used it in the deal that I'll tell

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you about in a second, which is a great on price than a great on terms, right.

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And so when you would go to, quote, talk to this business, right, there's the price,

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which you might say cool, you know, this business, $625, and then there's terms, right.

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And so the terms side, once you've agreed on the price, you can negotiate down whatever.

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And then you say, okay, well, I'm going to need you to sell our finance, meaning you're

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not going to pay anything or your pay them over time, right.

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I need you to sell our finance, you know, three quarters of the deal, all right.

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And so three quarters of the deal, man, I'm doing some math today, but like 430-ish,

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437, whatever, $1,000, and you're going to finance that for, you know, three years, right.

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And then on top of that, or five years, you know, you could do whatever you want here.

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I think, I mean, you can probably, I mean, you try and push it out as far as you can, right.

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And then what you have remaining, which would be like in this instance, $200,000, then

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you get a note from the bank, right, or SBA loan, which you have a $200,000 loan for

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it, and you put your $50,000 down, right.

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So then that would be $200,000, so you put $50, which would be 25% of $200,000.

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So I'm going to recap this.

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$625 is the cost of the business, you know, $437, you get seller finance, meaning you can

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pay that over time, and then you've got $200,000 that you get a loan from the bank.

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So which you put $50,000 for.

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So if you're thinking about this, the guy who's selling the business, he sells for $625,000,

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but he's only getting $200,000 up front.

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You're only putting $50,000 of that $200,000 and you're taking a loan for the rest of it,

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right.

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And so when you're looking at this, you've now acquired this business that makes $250,000

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a year, right.

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So you upgraded your income from $60,000 to $250,000, right.

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And within 24 months, all of that income will be yours, and maybe hopefully you'll grow

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it, or you'll probably try and work extra hard and take over some of the other positions

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or cut out some of the waste, et cetera, in the business.

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And so that massively speeds you up in life, right.

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And if you compare that to what it would cost you to start your own business in terms

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of investment and like existing book of business, client lists, all the nicknacks you have

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to buy that you don't even think of, zoning permits, and all the fees and licenses, it's

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actually pretty decent deal.

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Mozination real quick, if you are a business owner that has a big, old business and wants

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to get to a much bigger business, going to $50, $100,000 plus, we would love to talk

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to you.

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And if you like that, we'd like to hear more about it, go to acquisition.com and you can

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plan anywhere on the page and talk to one of our team and see if we can help you get

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there.

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So I'll tell you one of the deals that I did that was pretty good.

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So I had four locations at this point.

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This is one of the gyms.

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And I opened a fifth location.

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So the first two locations, I opened the first one, I think, for $40,000.

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I mean, I put his little as I possibly could in this thing.

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And it happened to have been an old gyms, so there was like turf already in, the flooring

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was already in, it was painted, like there was a bunch of things I didn't have to pay

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for.

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So I lucked out there.

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But the second one, because I thought I was smarter, we put $250,000 into the second

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location.

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And here's the fun thing.

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It made no more money than the first location debt, which I always think is hilarious.

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So like, to the undesciplined, everything looks like a spending opportunity.

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And so I pretty much would empty my bank account.

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And so on my fifth location, my next two locations were corporate locations.

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It's actually pretty cheap, which was pretty cool.

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Those are good deals.

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But the fifth location that I did, I had a gym that went out of business or not out of

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business.

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He wanted to uproot because he got divorced or he had some family crisis.

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And so he was looking for someone to buy his gym.

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And so it was beautiful.

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It had all this equipment that was really expensive in it and I was like, man, this is

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like a dream come true.

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And so I agreed on price, because I had my mentor talk me through this.

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I agreed on price, which I think was $40,000.

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I think it was $40,000.

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It was $40,000 or $50,000.

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I think it was bit.

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So that's what I agreed.

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And then I was like, cool.

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I'll pay you over the next year.

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And he was like, fair enough.

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And so I made he didn't say like that we negotiated, and then 12 months is what we came to.

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And so I mean, I tried to go for 24 months, but he agreed on 12.

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And so the beautiful thing with that was I didn't put any money out of pocket.

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So my first gym, I put 50 grand in, second gym, I put $250,000 in, fifth gym, smarter

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more experienced me, puts no money in, right?

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And then the first 30 days we did 51,000 in sales.

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So this gym in the first 30 days literally paid for itself, period, right?

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And so this thing is now kicking off profit, right?

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Every month during this whole period of time.

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And then 12 months later, I ended up meeting Russell and telling him how I was doing this

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stuff.

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And he's like, you should be teaching other people how to do what you're doing now.

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And so I ended up selling the gym for one and a half times more than I, quote, bought

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it for, right?

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Which I then had the gym pay for it on its own.

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And so I basically acquired a cash flowing asset for nothing, and then had just acquired

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a cash flowing asset for no money.

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And so I think about that in light of the original thing that I mentioned was just like,

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I get people who message me all the time, like, what happens if I don't have any money?

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I don't know what to do.

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You always have to just get skills, or this is just my opinion, is that because there's

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no one who can take them from you, there's no divorce, there's no government, there's

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no revolution, there's no financial crisis that can ever take your skills from you.

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And that's why when entrepreneurs hit zero, they can usually bounce back.

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I've done it.

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I had $1,100 in my bank account at one point, at my lowest point after I had six gyms,

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right?

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After this.

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And then I had this experience, and it sounds cool, like, I messed up.

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And you know, that's why I think I love this saying you only, you should only have to

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get rich once, and that's why people who are wealthy are more risk averse because the

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downside risk of losing everything is always bigger, right?

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Like you can reverse 30 years of great decisions with any number multiplied by zero.

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Any number multiplied by zero.

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You can have a billion dollars if you make a bad investment, it goes to zero, right?

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And so that's why when people are like, I don't know why you're motivated, and I don't

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know why, like it's just, there's just always things that can happen, you know what I mean?

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And so just being risk averse is what I have noticed from the people who have the most

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money is that they actually have way lower risk tolerances than the people who have no money,

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which is hilarious because it's like the people who have the least amount of money, then

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go buy lottery tickets, which are literally the worst investment you can possibly make.

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And they consistently invest their money in a terrible investment that has all the downside

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risk of going to zero, whereas the richest people in the world find things that could never

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go to zero and they buy them for zero.

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So think about that for a second.

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People are using their money, poor people, use their money to buy things that have virtually

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guaranteed, you know, risk of going to zero, right?

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The tiny risk of upside, right?

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Whereas rich people buy stuff for zero dollars that have upside potential, but that doesn't

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have a billion dollar upside potential.

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They would rather have a guaranteed small return with no risk than a potential for huge

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return with guaranteed risk.

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Think about that.

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So anywho, I think if over time, and it's not like you can shift your perspective on

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this overnight, it's like me a long time.

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And I still am doing it now in shifting how, like, as I still get excited about, you

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know, I see these crypto currencies, 20 X-ing and stuff, you know, in like a month and

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I'm like, man, that's crazy.

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But then I also think like, well, the downside risk of me going to zero is far more upsetting

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to me than me getting 20 times more on some tiny investment that I would make.

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And so I don't do it, right?

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And so anyways.

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I say all this to say, a ground price, a ground terms, try and get something for nothing.

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See if you're going to, if you're going to make an investment in any kind or you're

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trying to start a business, there's usually a business that's already for sale or has

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a motivated seller, an owner who doesn't want to do it anymore, who almost give it to you

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for free.

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Right?

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And that's the thing is when you're new, you're getting so excited, but you're not patient,

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right?

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That's why you have to have the character traits of being successful before you will

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see the success because if you, if you have that character trait, you'll look and you'll

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say, I can take six months because in the, in the decade of my, in the next decade of

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my life, there's no rush.

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But me making a good deal or a bad deal of like, should I put all my investment in this

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thing or should I be able to get something that makes four times more money for free?

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You can do that.

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You can do that.

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And I'm telling you, I talk to business owners every day.

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I mean, guys making a million, two million, four million dollars a year who literally

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have told me they're like, dude, if someone came today and offered me, like guys who are

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making a million dollar, a million dollars a year in profit, like if someone had offered

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me 200 grand right now, I would take it, I just am so tired of this business.

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So like there are opportunities, they're just not listed anywhere, you just got to look

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for them, right?

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And that's the thing, no one will do it because it's work.

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So, but the good news is that if you have a little bit of work, I think you can make a

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tremendous amount of money with very little risk and do it the way the rich people that

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I know do it.

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So otherwise, have an amazing day, keep being awesome, and I'll catch you guys some

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time.

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Bye.