As business owners, we all have access to 3 buckets of money. Statistics say it's hard to get money out of bucket one. Fewer than 50% of us make it beyond 5 years. It's even harder to get money out of bucket #2.
If you're one of the few who has succeeded in business and are wondering what the buckets are (especially bucket 3), you're in the right place. Unfortunately, statistics say more than 70% of us are likely to get nothing from bucket 3. Why? Because we don't understand the process. We're here to change that.
First of all, what are the 3 buckets...right?
BUCKET #1: COMPENSATION
The first bucket is the compensation bucket. This bucket is where we earn enough free cash flow (from our business) to pay ourselves. This money pays for our living expenses.
BUCKET #2: FRINGE BENEFITS
The second bucket is the fringe benefit bucket. It's all the "financial advantages" of small business ownership beyond compensation. The second bucket includes car allowances, travel and entertainment, retirement contributions, real estate, etc.
Sound familiar? If you're still reading this, it's likely you've experienced one or both of the first 2 buckets. But, we likely got your attention because of our focus on bucket 3 right? Keep reading.
But, before we go further, it's really important to understand that buckets 1 and 2 are what determine the size of bucket number 3.
BUCKET #3: ENTERPRISE VALUE
The 3rd bucket is enterprise value. It's what our businesses are worth. There are two really important questions when it comes to bucket 3. First, what's my business worth? In other words, what's someone willing to pay for it? The second question is, how do I do it? In other words, what's the process and how do I go about letting people know my business is for sale without damaging my business? After-all, customers and competitors might find out.
The question for you is this: Are you willing to let multiples of free annual cash flow go because you don't want to take the time to understand how to get value from bucket #3?
Here's what we hear from business owners:
Do any of these sound like you?
Here are a couple sobering facts:
Our mission is to improve these statistics. We help business owners understand the process of buying or selling a small business so more business owners experience the stored up value within the business. In other words, get value out of bucket #3.
If you'd like our help, you have several options...
We host a podcast called Defy The Odds Show where we help current business owners and aspiring business owners better understand the process behind buying or selling virtually any small business. We tell stories, interview people, share information, etc.
We offer a FREE course "How To Create A Transition Plan For Virtually ANY Small Business."
We offer a comprehensive DIY course called "How to Buy or Sell Virtually ANY Small Business." (coming March 1, 2019)
Finally, we offer full business brokerage services in 32 United States and buyer representation services for those who are ready to either sell or purchase a small business.
We follow our proprietary "6 Step Process For Buying or Selling Virtually ANY Small Business" and "8 Things You Must Know Before Buying ANY Franchise." These are the result of 25+ years of experience buying, selling, owning, brokering, consulting, and franchise coaching small businesses in 6 completely different industries (Yes we can furnish references of clients, partners, and proof of the 3 businesses we successfully operated and sold personally for well over 7 figures).
If you're interested in learning more, you can schedule a free consultation with us, listen to our podcast, subscribe to our newsletter, our take one of our courses.
Finally, think of it this way...Is it ridiculous to think you're not going to want to sell your business at some point? Don't wait any longer. Bucket #3 is depending on you. We're here to help.