01 May The Investment You Can Influence
Investments You Can Influence – No matter how many IPhones you buy, you are unlikely to change the value of your Apple Stock. Most investments do not let you significantly influence their value. But buying an existing business is one of the great exceptions. Over the last few years, there has been an influx of talented people leaving the corporate world to acquire a small businesses and then growing them into profitable investments.
After leaving his last corporate job in manufacturing, Mike spent over six months looking at everything from restaurants to gas stations, but finally invested in a nice plumbing company. He knew nothing about plumbing and studied to get his license. He knew it was making enough to get by on at first so he did not have to wait years hoping for profitability.
And the banks liked it so much that he was able to get an SBA loan which allowed him to buy the business for only 20% down. Additionally, he was able to create a special corporation that allowed him to apply part of his 401K toward the down payment without paying penalties and taxes. Now he spends his time building sales, managing the bottom line, and helping his crew become professional stewards of the company. He has applied his skills gained from school and a few decades of working for various corporations.
Plumbing was the furthest thing from his mind and he initially resisted the industry because he felt he knew so little about it. He soon realized that he did not know that much about gas stations, restaurants and almost everything else he was considering. He realized that he knew about managing people, and finance, and project management, and building strong customer relationships. He realized many of his skills would be useful in almost any business and that the skills he did not already possess were things he could either learn or pay someone else to do.
Today the company is much more profitable than when he took over. He is very happy with his investment. Although he admits there are plenty of challenges each week. But at least it is his company and that in itself is very satsifying. Not only is the business providing greater profits each year, but the value of the company is also increasing. Mike has significantly and positively influenced his investment. He is one of many great successes that we have been pleased to help.
Legacy Venture Group’s Acquisition Advocate Program focuses on helping Corporate Refugees, Retired Military and Visa Seekers acquire the business that is right for them. Mike is just one of the many who have done a great job turning a business dream into a legacy.