My journey involved struggles and various side hustles before discovering the strategy of buying existing, profitable small businesses. Read more: https://hubs.li/Q02GXwjZ0 Post written by Joseph Drups, Forbes Councils Member.
Forbes Business Council’s Post
More Relevant Posts
-
I’ve been asked more than a few times why my family still has an operating business and we do not just park our money with a wealth manager and call it a day. It’s a fair question. Every family is different but for my family it comes down to the following: 1. Outsized returns: Historically, we see outsized returns in our operating business as compared to our passive investments. We do keep an allocation for non-real estate private markets investments so as to diversify but these have generally underperformed relative to our real estate operating business. Probably comes down to us having done real estate operations and development for over 50 years. That kind of institutional knowledge is something we want to take advantage of. 2. Passion: We have been lucky so far and had a very passionate person in each generation excited to continue operating our family business. If I did not run Westlake Realty, I would have probably started my own real estate investment platform. I really do love real estate and am grateful for the opportunity to do it alongside my family. 3. Imparting values to the next generation: Of all the reasons, this is the most compelling for us. Operating a business day in and day out is an exercise in hard work, grit and resilience. When problems come up, we cannot just run away, we have to solve them. When we fail, we have to get up and try again. I do not think you learn these same lessons as a passive investor. The business is a place where the next generation of family members can try out different aspects of working in a business and learn how businesses operate at a young age. These are intangible benefits you can’t measure with IRR or equity multiple.
To view or add a comment, sign in
-
In the realm of business finances, the distinction between revenue and profit often holds the key to long-term success and sustainability. To shed light on this fundamental difference, let me share with you a compelling story of a determined small business owner, an independent contractor striving to carve a path in the competitive landscape. In their second year of operation, this entrepreneur proudly generated $23,000 in revenue – a commendable feat for a budding venture. However, as the tale unfolds, it becomes evident that the financial narrative is more intricate than meets the eye. Despite the seemingly encouraging revenue figure, this aspiring business owner found themselves perennially grappling with financial constraints, prompting a closer examination of the elusive concept of profit. Join me on a journey through this narrative as we unravel the critical distinctions between revenue and profit, and discover the pivotal role they play in shaping the financial fate of businesses................................. Read the full article here https://lnkd.in/eyT4a3NJ
To view or add a comment, sign in
-
The Barefoot Investor himself, Scott Pape, weighing in on the opportunity the Silver Tsunami presents to young people: "And here’s the kicker. Many of these businesses are being sold for a song, or even closed when the owner retires. And these are the types of businesses that you want to buy." via PerthNow. #smallbusiness #business #strategy #advice #exitplanning #exitstory
The ‘unsexy business’ earning young Aussie man $160k-a-year
perthnow.com.au
To view or add a comment, sign in
-
Inc. Magazine recently caught my eye, highlighting a stark reality that many of us in the commercial financing sector are becoming increasingly familiar with. The article reveals a concerning trend among business owners who are close to retirement - a significant lack of preparedness for exiting their businesses. Here' a sobering wakeup call: 70% of companies that hit the market do not find a buyer, leading half to shutter due to involuntary events. This isn't just an issue for the businesses themselves but impacts the financial ecosystem and communities around them. For all of those business owners out there, it's never too early to think about the finish line. Educating our clients and providing them with nuanced strategies for succession and exit must become priority - because leaving it up to chance is a crummy option. An early and well-thought-out exit strategy can be the defining factor between a closed sign and a successful transition. Share this post to spread the word – planning now paves the way for a brighter future. #Business #Finance #SuccessionPlanning
Small-Business Owners Air Their Succession Struggles Before Congress
inc.com
To view or add a comment, sign in
-
An interesting article Kyle shared from Inc. Magazine caught my attention. It's surprising to learn that 70% of businesses that hit the market never find a buyer. That's a significantly higher figure than I would have anticipated. Over the past year, we've observed an uptick in lenders' willingness to finance acquisitions. Given that financing is often a crucial component of the capital stack for buyers, I'm curious to see if the expanded financing options will reduce that percentage over time. Only time will tell!
Inc. Magazine recently caught my eye, highlighting a stark reality that many of us in the commercial financing sector are becoming increasingly familiar with. The article reveals a concerning trend among business owners who are close to retirement - a significant lack of preparedness for exiting their businesses. Here' a sobering wakeup call: 70% of companies that hit the market do not find a buyer, leading half to shutter due to involuntary events. This isn't just an issue for the businesses themselves but impacts the financial ecosystem and communities around them. For all of those business owners out there, it's never too early to think about the finish line. Educating our clients and providing them with nuanced strategies for succession and exit must become priority - because leaving it up to chance is a crummy option. An early and well-thought-out exit strategy can be the defining factor between a closed sign and a successful transition. Share this post to spread the word – planning now paves the way for a brighter future. #Business #Finance #SuccessionPlanning
Small-Business Owners Air Their Succession Struggles Before Congress
inc.com
To view or add a comment, sign in
-
Driving Consistent Cashflow for Ambitious Businesswomen with my Holistic Success Method [Mindset is NOT enough! Strategy, Energetics, Business Thinking] | Join my 12-Week Cashflow Accelerator (Enrollments Now Open)
When I talk about Cashflow, People think I'm only helping small businesses... Solopreneurs Start ups And the small cash strapped beginners. But Lehman Brothers Byron Burgers Woolworths House of Fraser The Arcadia Group WeWork And MANY others, were huge companies, that went out of business, because they ran out of cash. So I'm just putting it out there... Getting to grips with cashflow is ALWAYS a priority for a successful business It doesn't go away just because your Turnover (or revenue, or topline... however you choose to refer to it) is higher. The US's Inc 5000 list shows America's fastest growing companies. and yet 60% of the companies listed are out of business within 3 years of their listing... Why? same reason! Cashflow Don't be fooled into thinking you can outgrow a lack of cashflow knowledge and understanding, just by making more money. You can't. Which is why my clients range from 0 to £$€8m... in size But all have that incredible ambition to see the world changed. Cashflow is what successful business owners focus on Not just small business owners #WomenInBusiness #cashflow #CallaSuccess #WhatYinkaSaid ____________________ 🌟 Hi, I'm Yinka, and I help women to create wealth in and through their businesses, by focusing on cashflow, Mindset and business thinking Like this post? Well you can 👩🏾🤝👩Slide into my DMs and ask me about strategy, cashflow, business or a winning mindset 📅 22 Jul 2024
To view or add a comment, sign in
-
A family business’s “reinvestment rate” — the percentage of all the profits that are reinvested in the legacy business or new ventures, instead of distributed to owners — is the single most important number to look at to determine whether the business is on track to grow.
Is Your Family Business on the Path to Growth?
advisorstream.com
To view or add a comment, sign in
-
Senior Wealth Advisor at Investment Planning Counsel | Financial Planning Specialist at Legacy Wealth Management Inc. | Women & Wealth | Retirement Specialist | Divorce Planning
A family business’s “reinvestment rate” — the percentage of all the profits that are reinvested in the legacy business or new ventures, instead of distributed to owners — is the single most important number to look at to determine whether the business is on track to grow.
Is Your Family Business on the Path to Growth?
advisorstream.com
To view or add a comment, sign in
-
A family business’s “reinvestment rate” — the percentage of all the profits that are reinvested in the legacy business or new ventures, instead of distributed to owners — is the single most important number to look at to determine whether the business is on track to grow.
Is Your Family Business on the Path to Growth?
advisorstream.com
To view or add a comment, sign in
-
A family business’s “reinvestment rate” — the percentage of all the profits that are reinvested in the legacy business or new ventures, instead of distributed to owners — is the single most important number to look at to determine whether the business is on track to grow.
Is Your Family Business on the Path to Growth?
advisorstream.com
To view or add a comment, sign in
42,786 followers