Billionaire In Training by Bradley Sugars

Author:Bradley Sugars
Language: eng
Format: epub
Publisher: McGraw-Hill Education
Published: 2006-01-19T16:00:00+00:00

Buying Retail

Obviously when you buy something and pay the retail price for it, you’re giving someone else the profit. Suffice it to say, there are only a few occasions when I’ll recommend that anyone do this.

First though, what do I mean by “buying retail?”

Generally when you look in the paper or call a broker, they’re going to show you the advertised price of a business for sale. To me you’re paying retail if you buy the business for a price anywhere near the price they’ve advertised it for. And by “anywhere near” I mean anything more than half of what they’ve advertised it for.

Even with this in mind there are several reasons I’ll recommend Level 0, 1, 2, and 3s should use this purchasing method.

However, I strictly want to point out that it’s my suggestion that you only ever pay retail for your first few businesses. Once you’ve bought, built, and gotten these first few running at a profit without you, you have enough time and money to move on and do Level 4 deals.

Reason #1: At least you’ve got a start. The business is up and running, and making a profit. This profit making is extremely important if you’re paying retail. You want built-in profits that give you a planned return on investment before you even have to build the business.

And, if you’re paying full price, you want full profits. Make sure you get the previous owner to work with you for up to a month as part of the purchase price to train you. One important thing about the previous owners, though: They’re still blinded by what you can’t do, based on their experience. Always be willing to try something new, even though they seem to feel it won’t work.

Reason #2: You’re about to learn a whole lot. While I’d still recommend negotiating on the price, remember the main objective of your first business is to learn and grow, and second to make money and profits.

Reason #3: The most powerful time that I suggest it’s extremely wise to pay retail is when you’re investing in a proven franchise. Franchising has removed many of the pitfalls for the business buyer. And while many of the franchise systems are great, there are also many that are pitiful. So many people starting franchises have no idea how to train you, support you, and help you succeed. Be aware that the best franchises are generally the ones that you will have to pay a solid price for. However, remember to look for profit, not turnover.

If you need help researching franchises, go to my company’s Web site www.franchisemasters.com.au, and check out the franchises we have built and have available.

One last point about buying at a retail price: while it’s not the best way to buy, it’s still a solid way for first-time buyers to invest in an already proven system that can fast-track both your profits and your learning experience.

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