馃攳
How To Make $10k/mo+ By Buying A Business - YouTube
Channel: Ryan Daniel Moran
[0]
- Welcome to "Capitalism TV".
[1]
I'm Ryan Daniel Moran.
[3]
Hey, here on the show
and inside our community,
[6]
which is called The One
Percent, we make a point
[8]
to highlight a business
[11]
that even if you're just starting out
[13]
you can use and copy to get
to at least $10.000 a month
[17]
and go full-time.
[19]
And this month we're talking
about buying businesses.
[22]
I think this is the most
overlooked opportunity,
[27]
even if you're just starting out.
[28]
Now, if you're a full-time
entrepreneur already
[31]
you should absolutely be
looking at buying businesses,
[34]
but if you're just starting out I want you
[36]
to at least consider this as your ticket
[39]
to becoming a capitalist.
[41]
So today we're going all in
[43]
on talking about how
you can buy a business
[46]
even if you don't have
a dime to your name.
[48]
It doesn't take any money.
[49]
We'll talk all about it.
[50]
So grab a seat, let's have some fun.
[53]
(upbeat music)
[64]
All right, so, before
we jump in, quick story.
[68]
This company right here, I
think I'm usually drinking
[72]
because my neurotic brain
needs something to do
[74]
so that I'm not doing this the whole time.
[76]
I'm not looking like
Beto O'Rourke on stage.
[79]
- You do have a lot of hand movement.
[81]
- I am who I am.
[82]
- This company right here, Zevia,
[85]
was not started by the
person who owns it right now.
[90]
About 10 years ago, a
nice little white boy
[93]
by the name of Paddy Spence,
[94]
actually I just assumed that he's white.
[96]
Is that not okay?
[98]
(bell dings)
[99]
Anyway, Paddy Spence, whatever
race or ethnicity he is,
[104]
acquired Zevia and
reformulated the actual way
[108]
that the product is made,
[110]
and the business really took off.
[111]
The interesting thing
about that is Paddy Spence
[114]
didn't come up with the idea.
[116]
He didn't prove the concept.
[119]
He instead saw an opportunity and he said,
[121]
"I like that, I wanna
do something with that."
[124]
I get a lot of questions from
investors or entrepreneurs
[127]
who have like $10,000 or sometimes $20,000
[131]
asking what should I do with this money
[133]
in order to generate passive income.
[135]
And we could have a long conversation
[138]
about the ways that I
invest for passive income.
[140]
In fact, we've done a whole
lot of content around that
[142]
here on the YouTube channel,
[144]
but instead of answering the question
[146]
of how do you use 10 or
$20,000 as your lump sum
[151]
to try and generate passive income,
[152]
I'd like you to consider instead
[154]
using that money or using your skillset
[158]
to go acquire a business
[160]
that makes the type of passive
income that you really want.
[164]
You see, if you've got a
small amount of capital
[167]
when you're starting,
[167]
you have a couple options.
[169]
You can either start
something from scratch,
[171]
which is great, really what I
have done as an entrepreneur,
[175]
and it's what most people think of
[176]
when they talk about entrepreneurs,
[179]
people who are starting
something from scratch,
[182]
bringing it to the marketplace,
[183]
working like mad in order
to make that successful,
[187]
and taking on all of the risk
of that succeeding or failing.
[191]
That's great.
[192]
I believe in those people.
[193]
I am one of those people.
[195]
But there's another way, too.
[196]
You can also go look where the ideas are
[200]
and simply acquire them,
[201]
even if you don't have a lot of money.
[203]
We hold our yearly event called
The Capitalism Conference,
[206]
and we had a panel that
was about buying businesses
[209]
because I had my eyes
opened a few years ago
[213]
when I saw that a lot of the
real money was being made
[217]
by people who were waiting
for the opportunity,
[220]
acquiring it, and then
growing the business.
[223]
And they got paid along the way,
[225]
the had immediate cashflow from day one,
[228]
and they didn't have to put up
any of the money or the risk.
[231]
And here's my favorite
clip from that panel
[233]
at The Capitalism Conference.
[235]
Putting anything in to try
and have upside is risk,
[239]
and when you have 100K or less to invest,
[242]
a conservative return
isn't as sexy, right?
[246]
So since we're talking
about risk tolerance,
[249]
there's a couple of questions in the group
[251]
about well with a smaller pot
[253]
shouldn't you just roll
the dice on something
[256]
and hope that there's a lot more upside
[258]
because the conservative route
[260]
isn't as enjoyable or as sexy.
[263]
Ace, you're grinning from ear to ear.
[264]
- So I'm a big believer that
I think it's a combination.
[269]
When you've got a small pot
you've gotta invest more time.
[273]
In those early days of me doing deals,
[278]
it was I've gotta find an amazing deal
[280]
because I barely have any money
[282]
so I've gotta do a ton more work.
[284]
It may take more time, more effort.
[286]
Today I've got more cash,
and so it's more important
[290]
for me to get that cash to
work as quickly as possible
[294]
and I don't have as much
time so I can't put that time
[296]
into finding the deal.
[298]
So whatever the space is that you're in,
[299]
I think that putting that
time in is important.
[302]
And then something that
was alluded to earlier,
[306]
and this is my thought on savings as well.
[309]
I think the initial goal should
be whatever expense you have
[314]
trying to go and buy cash flow first
[317]
and then have that asset
pay for your expenses.
[322]
So that is a little bit
of a different concept.
[324]
I don't really believe in savings.
[326]
I'm more about I don't
wanna pay any expense.
[330]
I wanna go and find the cash flow
[332]
that can pay for that expense
[333]
and then buy that cash flow.
[335]
- So you're saying using
the cash to buy assets
[339]
and living off the return
[342]
and using your time to generate
more of the seed capital
[345]
to buy more investments.
[346]
Is that what you're saying?
[347]
- Exactly.
[349]
- Now, in a second I'm gonna introduce you
[351]
to a friend of mine here in Texas.
[354]
But before that I want you to see
[355]
that you can actually start doing this
[357]
on a really small basis
[359]
if you feel some tenseness
or some hesitation
[362]
around the idea of buying a business.
[364]
In fact, early in my career,
this is back in like 2013,
[368]
I used to buy and sell a lot of websites
[371]
because I made my first money,
[374]
I actually made my first
$100,000 as an entrepreneur
[377]
from my college dorm
room building websites
[379]
and selling advertising on those websites.
[382]
Now, when I built all of
that I had this thought
[385]
of how can I get as many
of these as possible
[388]
so I can have a portfolio
of passive income
[391]
that just sends money into my bank account
[394]
and me not have to build the whole thing.
[397]
And so what I started
doing was buying websites
[400]
that followed the same
strategy that I had been doing
[403]
while I was grinding away into
the wee hours of the morning
[408]
building these passive income websites.
[410]
So I started browsing
marketplaces of websites
[414]
that I could buy for $1,000,
for $5,000, for $500.
[420]
In fact, check this out.
[421]
One of my best deals
was I bought a business
[425]
that had 50,000 customers,
that ranked in Google,
[430]
that sold a product, and
I bought the whole thing
[433]
for six or $800.
[437]
So that money came back like this,
[439]
and later I flipped the business
for a pretty nice payday.
[443]
So you can start really, really small
[446]
by buying websites, which are businesses.
[450]
Ads are just one way of making money
[453]
from a website or a business.
[455]
There's lots of ways to make money.
[456]
So if you know what to look for,
[458]
if you know what types of things
[460]
make money within a business,
[462]
you can look for those
under priced opportunities,
[466]
acquire the business, get
it making more income,
[469]
and then you can either
sit on that and go buy more
[472]
or you can sell it at a later date.
[474]
Now I wanna go into some
actual tactical pieces
[477]
of how you can start doing this.
[480]
Okay, so now I wanna introduce you
[482]
to a friend of mine here in Austin.
[484]
His name is Shakil,
[485]
and I first met Shakil
because he reached out to me
[488]
because he listened to the
capitalism.com podcast.
[491]
And so when I moved to
Texas he reached out,
[494]
we had lunch, and we became friends.
[496]
So he had really benefited from listening
[499]
to a bunch of our podcasts
at capitalism.com,
[502]
and he had used that knowledge
[505]
in order to educate him on what
types of businesses to buy.
[510]
Now this is really interesting.
[511]
In the clip you're about to see,
[512]
Shakil talks about the fact
that he started a business
[516]
at one point and he said,
[518]
"Man, how do I skip this part?
[519]
"How do I cut out all of
the coming up with the idea
[523]
"and the late nights,
grinding and hustling.
[526]
"How can I just completely get rid of that
[528]
"and still have money?
[530]
"And I would like to
be paid from day one."
[533]
- So I'm Shakil.
[534]
I started my first company in 2014,
[539]
and just like all you guys
there's a lot of sweat equity
[542]
that goes into it.
[543]
It's a lot of time.
[544]
You have to build your story.
[545]
You have to build experience.
[546]
You have to get suppliers, products.
[548]
You have to test a bunch of things out.
[550]
And what I realized is
it took a lot of time
[553]
to really do that.
[555]
So I thought, "Hmm, how
do I hack the system
[559]
"and buy a business in a box?"
[561]
So in 2014 or '15 I
bought my first business
[567]
through, actually, Quiet Light Brokerage
[569]
and made my money back in three months.
[572]
And the way I did it was I always look
[575]
for a good opportunity buy.
[578]
There's a lot of sellers out there
[580]
that are not utilizing digital marketing,
[582]
their email list, Amazon, for example.
[587]
So in the last three years
[588]
I've bought over a dozen businesses.
[589]
The last one profiting
close to a million dollars.
[594]
So I'm just, I buy any product, any niche,
[597]
as long as it's making good money.
[600]
- [Ryan] Shakil, tell me why
you buy instead of build.
[605]
- For me, it's saving time.
[609]
As you guys have heard all the presenters,
[611]
it's how do you build a brand?
[614]
How do you build a story?
[617]
I want to buy that story.
[618]
I wanna buy that brand
is what I'm trying to do.
[624]
You're buying those SOPs, the IP,
[627]
the failed strategies, what's worked.
[629]
I wanna use that and
really propel the company.
[633]
Going from a zero to $100,000
in revenue takes a lot of time
[637]
but to go from 100,000 to $500,000,
[640]
it gets a little easier.
[642]
And that's where I come in and I automate,
[645]
I build processes.
[648]
I'm not afraid to spend
on digital marketing.
[652]
But yeah, the whole
point is it's really just
[655]
to make my money back
[655]
and have a high ROI on
the time I'm putting in.
[659]
- I love how he says there
[661]
that he'll buy anything
that makes a lot of money.
[664]
What he's really saying there
[666]
is he buys businesses that sell on Amazon.
[669]
He buys content sites.
[671]
He buys eCommerce websites.
[673]
He buys lots of different businesses.
[675]
He doesn't have to be an
expert at any one thing.
[680]
He doesn't have to have a specialty
[682]
in a certain type of business.
[684]
He simply looks at the
numbers and buys those.
[687]
Now, he obviously wouldn't buy a business
[690]
that conflicted with another one
[692]
or took his attention
away from another one.
[694]
But he's building a portfolio of assets
[697]
that make monthly income,
[699]
and so he gets to play.
[702]
He gets to come up with ideas
[703]
that he wants to test in the business.
[706]
He gets to take over businesses
[708]
that are already making passive income.
[710]
That's really empowering
for a lot of people
[713]
who are saying, "How do I get started?".
[715]
Well, you might not have
to start anything at all.
[719]
You could completely cut that piece out,
[721]
which is what Shakil did.
[723]
Now at this point, the
question always comes up,
[726]
"Okay, well how the heck
am I gonna get the money
[729]
"to buy a business?"
[731]
"Because if it's making money
[733]
"I'm gonna have to pay for that.
[736]
Well, good news.
[738]
There's a lot of different
ways to acquire a business
[742]
without putting up any of your own cash.
[745]
Sometimes you might choose
to put up your own cash,
[747]
especially if you're starting
with a really small business
[750]
and buying something for
a few thousand dollars.
[753]
But if you're going after
one of those bigger deals,
[756]
something that's making $10,000 a month
[759]
then you might wanna consider other forms
[762]
of acquiring that business
[764]
without putting your life savings at risk
[767]
and without putting your future at risk.
[770]
There's a bunch of
different ways to do this,
[772]
but Shakil shared some of
his favorites in this clip.
[776]
Shakil, you wanted to comment on this.
[778]
You wanted to comment
on funding the scale.
[780]
- Yeah, so I am not
backed by VC or anything.
[785]
Everything that I buy is through leverage
[788]
or my own savings.
[790]
So, besides debt, what's
really popular right now
[793]
is SBA loans.
[795]
So, and that's the
number one reason I like
[798]
to buy cash flow businesses is
[799]
because you get financing on it.
[801]
So with the SBA loan, you could
put down as little as 10%.
[806]
So on $1 million purchase,
you'd put down $100,000.
[813]
$900,000 loan over 10 years.
[816]
But if you look at the
calculations of that
[818]
on a business that you
buy for a million bucks,
[821]
it should be making $300,000.
[824]
So you're able to make your
down payment back fairly quickly
[827]
within the 12 months.
[829]
- [Ryan] And have you ever had the fear
[830]
of what if something tanks?
[834]
- No, not really.
[835]
I really try to buy the right opportunity.
[838]
It's funny, I joke with my
friends that some of them say
[841]
that they make six figures per month.
[843]
I say I carry six figures in debt.
[849]
I am not really risk averse.
[853]
I'm not really scared
of taking on leverage.
[855]
But it's really buying
the right opportunity.
[859]
I think we're all lucky
to be living in the day
[861]
and age we are right now,
where financing is super cheap.
[866]
You could get financing for
anywhere from five to 7%.
[869]
And usually, for a small business,
[872]
they're going for a 3x
multiple or even lower,
[875]
and that's a 33% return on your money.
[878]
Borrowing at 5%, getting a
33% return on your money,
[882]
it's a great time to
buying something right now.
[884]
- So I have a little bit of an exercise
[887]
that might be fun for you.
[888]
Think about the life
that you want to live,
[891]
and then think about
how much that might cost
[893]
in order for you to live it.
[896]
For a lot of people, especially
when you're starting out,
[898]
$10,000 a month is the number
that comes up pretty often.
[902]
So just imagine that you
could live your ideal life
[904]
for $10,000 a month.
[906]
And then instead of saying okay,
[908]
how do I make $10,000 a month,
[911]
what if you simply ask the question
[913]
what businesses already
make $10,000 a month
[917]
that I can go acquire.
[919]
And when you get practiced at this,
[922]
you can see a business that
is making $10,000 a month
[925]
and immediately know
[926]
that it could actually be
making $30,000 a month.
[930]
And if you start to play with this idea,
[933]
knowing that you don't have
to take a risk doing it,
[936]
you don't have to put up
your own money doing it,
[938]
you don't have to spend
your whole life savings,
[941]
it creates more flexibility in the way
[944]
that you make that $10,000 a month.
[947]
That's why this is so important
for people to understand.
[950]
It doesn't have to be you,
[952]
late at night, building something.
[954]
You can simply look for the
opportunities and acquire them.
[958]
If you'd like some help,
[960]
we have a community
called The One Percent.
[962]
And we have a lesson inside of there
[964]
that is all about buying businesses
[966]
with myself and with Shakil.
[968]
And inside you'll discover
how to find opportunities,
[971]
how to make sure they're the right ones,
[973]
how to fund them without
risking your future,
[977]
and how you could make this
your primary focus in business.
[981]
We'll link to that in the description
[983]
or if this approach isn't
your favorite approach,
[986]
every month we do a new
feature on a different way
[989]
that you could make $10,000 a month
[991]
or more here on the channel.
[992]
So make sure you're subscribed
[994]
so you see all the goodness
here at Capitalism TV.
[997]
Hey, I believe that once
you're freed up financially
[1001]
you can pursue whatever
it is that you want.
[1004]
And the fastest way to do that
[1006]
is to just take over the income stream
[1008]
that somebody else has built.
[1010]
And this is one of the ways
that you could do that.
[1012]
Hey, if you liked this episode,
[1013]
please follow us on social media.
[1015]
I'm @ryandanielmoran on Instagram
[1018]
or at capitalism.com for all
our business-related stuff.
[1022]
And make sure you're
subscribed to the channel.
[1023]
And we'll see you on the next episode.
[1025]
Thanks for watching.
[1026]
(mellow, upbeat music)
Most Recent Videos:
You can go back to the homepage right here: Homepage