This is Magic Johnson. He owns 400+ boring businesses that have made him a billionaire (he even taught Shaq how to do it). I’m no Ex-NBA Star… But I still own 6 boring businesses that make $725k per year. Here’s how I bought them as a normal guy:
“Shaq, it’s okay to be famous & all that, but at some point, you want to start owning things.”
That’s the advice Magic Johnson gave to Shaq in 1996. Throughout his 13-year NBA career, Magic made just over $40,000,000. But he’s made 25x since “retiring.”
Magic has bought 100s of businesses:
• TGI Friday (1 location)
• Starbucks (125 locations)
• Fat Burger (200 locations)
• Burger King (31 locations)
& even some health clinics across the US.
While that seems like something only an Ex-NBA star could do… I’ve done something similar.
& I started doing it while working my 9-5.
I’ve bought 6 businesses with the bank’s money that pays me $725k per year. Anyone can copy the simple method I use. Here’s my full blueprint (no gatekeeping):
1) Pick a recession-proof industry (HVAC, Accounting, Laundromat, etc.)
2) Use a broker (or BizBuySell) to look for businesses that are up for sale.
• $10k+/month cash flow
• $500k-$1M price
• 5 years old
3) Apply for an SBA Loan
4) Bring your tax returns & W2 pay stubs
5) Explain which business you want to acquire and why you are buying it.
6) Hire an accountant to analyze the financials of the business you’re looking at.
(btw, you can pay them in equity)
7) Look for consistent, increasing revenue
8) Talk to sellers (see why they’re selling)
Note: I usually buy from retiring Boomers
9) Make an offer 2.34x SDE (cash flow)
Example:
If the seller took home $400k last year, you should make an offer of $936k.
10) Use your SBA loan to finance 90%
11) Find an investor who’ll give you the last 10% (give them 15% equity in return.
Congratulations.
You bought a business with $0.
Let’s say the biz cash flows $33k/month.
I pay the investor 15% ($5k/mo) and I pay a GM to run the daily ops ($5k/mo)
Then I pay $12.6k in debt servicing (which is 11.5% interest rate over 10 years).
I’m left with $10,733 per month.
I’m just a regular guy (ex-corporate). I’m nowhere near Magic’s level, but business acquisition still changed my life. I earn way more than my old job at JP Morgan, and I only work 20 hours per week. If you want to learn how to do the same…
More details HERE