Although I was lacking any former business experience or training, through proper mentorship and coaching, I was able to buy my own business at the age of 24. The current owner of the company I was purchasing agreed to lend me the down payment and to finance the business to me with a low interest rate. I worked out a consignment deal with him in regards to his entire previous inventory. Every time something from that inventory was purchased from me I would pay him his share. My purchase agreement allowed me to default on three monthly payments per year for the first five years, if I did not make enough revenue for that month’s payment. At the end of five years I was required to pay back any payments that I was unable to make over that time. This was a dream come true considering I was only 24 years old, had no money, no previous experience and no business education. Five years later I sold that business and was afforded the same opportunity again with a second business. Overall, both businesses turned out to be successful and profitable, and thus started my journey in life as an entrepreneur.
The World Protection Group, Inc. – 2001 to the present
In 2001 I started The World Protection Group, Inc. As the business started to grow, I began to realize I needed to have formal business school training. I went back to Wharton University of Pennsylvania in Philadelphia, PA. and graduated in 2007. Getting a formal business education from the world’s top business school has helped me to take my business to the next level. Since the founding of the World Protection Group in 2001, it has expanded from 1 to 6 states with offices in Beverly Hills, Scottsdale, Az., New York City, and Mexico City and employs over 200 security professionals.
14 steps to buy a business.
- Make sure you buy a business that is right for you and you understand that business.
- Train in negotiations. Every day you should be negotiating & will need it to get the best deal when buying a business.
- Go on the SBA web site and use the resources to help you. www.sba.gov Consider applying for an SBA loan.
- Start a relationship with a business friendly bank. Get a line of credit once you buy the business.
- Make sure you don’t over pay on the purchase price.
- Get the owner to finance the business.
- Get a professional to value the business.
- Hire the best finance experts to help you understand & interpret the financials statements of the business you are thinking of purchasing.
- Don’t buy on emotions.
- Do market research and competitor research to understand the market you are thinking about buying into.
- Put together a business plan & SWOT analysis, strengths, weaknesses, opportunities and threats, to make sure the business is right for you.
- Make sure you have great legal advice and a solid agreement with the owner.