Starting a Business Was Not How I Became Financially Free... (I Did This Instead)

TL;DR

Buying existing businesses, not starting one from scratch, is how the speaker became financially free, following the same path the largest share of the Forbes 500 took to make their money. He prefers buying because he dislikes risk and wants to make money from day one. The video breaks down the three reasons most people never buy: not knowing the opportunity, not knowing where to find deals, and believing they lack the money. With 10,000 baby boomers retiring a day, keep reading for the mindset and tactics to acquire a business using sweat, expertise, and other people's money.

Transcript

you've been told the best way to get rich is to start a business I didn't get rich that way I wasn't smart enough to come up with the most brilliant idea I did what the largest percentage of people on the Forbes 500 list did to make all of their money I bought businesses now you could start a business to ownership but I like buying them because I d... Read More

Key Insights

• The speaker emphasizes that buying businesses is a more reliable path to financial freedom than starting one from scratch, as evidenced by many on the Forbes 500 list.
• There are three main obstacles to buying businesses: lack of awareness of the opportunity, difficulty finding businesses to buy, and perceived lack of funds.
• A significant factor in successfully buying a business is having the right mindset, which includes overcoming negative thinking and being willing to take action.
• The speaker introduces several creative methods to acquire businesses, such as using sweat equity, expertise, and other people's money, minimizing the need for significant upfront cash.
• The video provides numerous strategies for finding businesses to buy, including leveraging social media, networking, and databases, as well as innovative ideas like the Venmo Challenge.
• Persistence and the ability to handle rejection are crucial, as the speaker shares personal experiences of being turned down multiple times before securing a deal.
• Building a community and surrounding oneself with like-minded individuals is vital for support and success in acquiring businesses.
• The speaker offers a structured approach to the business acquisition process, breaking it down into 10 steps, from mindset to closing the deal.

Questions & Answers

Q: Why does buying a business beat starting one for financial freedom?

The speaker says he didn't get rich by starting a business because he wasn't smart enough to come up with a brilliant idea, so he did what the largest percentage of people on the Forbes 500 list did: he bought businesses. He prefers buying over starting because he dislikes risk and wants to make money from day one, rather than waiting for a new venture to become profitable.

Q: What are the three main reasons most people never buy a small business?

First, they don't know the opportunity exists or lack the mindset to pursue it. Second, and the biggest, they don't know where to find businesses to buy. Third, they don't feel they have the money to do it. The video is built to break down all three of these obstacles.

Q: How can you buy a business with little or no money?

The speaker teaches how to buy all or part of a business without a lot of cash, or potentially none, by using your sweat, your time, your expertise, and other people's money. The tactics are meant to be practical enough that halfway through the video you could start texting small business owners to ask whether they'd sell you a portion of their business without you needing cash upfront.

Q: Why is mindset the number one factor in buying a business?

The speaker calls the wrong mindset the number one killer of buying businesses. Negative thinking makes you get stuck, so you won't make offers and won't do the work, which he describes as the destroyer of hopes and dreams. He argues most people who aren't completely lazy or incompetent can buy a business and even leave their W2, but only if they're willing to work hard, handle the pain of being in charge, and stay curious.

Q: How many deals should you expect to review before one closes?

The speaker shares that failure in finding businesses for sale is normal. When trying to buy a marketing agency, he was told no by multiple people, including Greg Eisenberg and Hunter, reviewed several agencies from cold traffic, reached out to others who didn't fit or never responded, and went through roughly 35 deals in one vertical to get a single seller-financing deal done. Persistence and handling rejection are essential.

Q: What is the Venmo Challenge for finding businesses to buy?

The Venmo Challenge involves reviewing your Venmo transactions to spot small businesses you regularly spend money with. You then reach out to those owners to explore investing in or acquiring part of their business. It's a way to find acquisition targets that already exist within your everyday spending and network.

Q: What do you actually need to succeed at buying a business?

The speaker says you need three things: the right mindset, a strategy (which the video provides), and the willingness to take action. He also stresses having a community of like-minded people around you, since he believes successful acquisitions happen in the sweet spot between mindset, strategy, and action, supported by the video, the comments, and the free newsletter.

Summary & Key Takeaways

• The video challenges the conventional wisdom of starting a business to achieve financial freedom, advocating instead for buying existing businesses. The speaker shares personal experiences and strategies for overcoming common obstacles in business acquisition, such as mindset and funding.

• Viewers are introduced to a variety of innovative tactics for finding and acquiring businesses, including leveraging social media, networking, and using creative financing methods. The importance of persistence and a supportive community is emphasized throughout the video.

• The speaker outlines a comprehensive 10-step process for buying a business, from developing the right mindset to closing the deal. The video aims to demystify the business acquisition process and encourage more people to become business owners.