BenjaminGreig

How to turn $50k into $1.2M in 4 years. I bought a my frist business in 2003, exited 4 years later a lot richer. It launched my life as an entrepreneur and allowed me to live a life I had only dreamed of. Here's how I did it. 👇 👇 👇 I found a business on BizBuySell.com. Yep, it was around in 2003. I found something I was interested and had experience in, in this case construction (excavation for water & sewer along with concrete and asphalt patching). Seller was an owner/operator. I didn't know what that meant, but I was about to find out. Business was doing $180k top line and owner was taking home about $70k. This was good money in 2003! We negotiated a deal for $180k, with $50k down and $130k in SBA financing. I had saved $50k by working in heavy civil construction. I jumped through all the SBA hoops, sold them on my vision of growing this thing. We closed and I got to work. First order of business: get someone to run these machines, I have a business to grow dammit. Luckily seller was very helpful, even working the machines in the beginning. Soon we found his replacement though and had a full crew. Now to grow the business. How? Call the customer list, tell them there's a new sheriff in town and we're going to offer better, faster service. Customers (mostly plumbing co's who need someone to handle their pipeline digs) are thrilled. Previous owner was flaky and/or booked up. They needed fast, reliable service and were willing to pay for it. Off we go. We do the basics: we show up when we say we're going to show up. We get the job done on time or we tell the customer when it will get done. We are honest and forthright, own our mistakes, eat sh*t when we have to. Word gets out, there's this new guy and he's not shady or flaky. Phone blows up. Soon, I'm hiring new crews and buying new equipment. Soon I'm taking home $200k and driving a shiny new(-ish) pickup. We branch out, doing heavier pipeline jobs, commercial and government work with fat margins. We become the go-to guys for emergency work in the right-of-way. We close major roadways to fix major trunk lines. BIG STUFF. Top line blows up $2.5M, 25 guys working their tails off. I get burned out, decide to sell. The growth looks juicy to a buyer, 4 years after I bought I'm OUT. Walk away with about $600k in cash after debts are paid. Made about $1.2M over the course of 4 years, bought 3 rental properties, an off-grid house and blew a bunch of it on fun, travel and partying. Was it easy? JFC, NO! But it was fun as hell (at times) and I learned a ton. Should you do this? Maybe. But it CAN be done. I had ZERO entrepreneurial training or instincts and I LOVED it. Wouldn't change a thing. Can't imagine ever working for anyone again. If you're sick of corporate America or your W2, you can do this too. Key lessons: - Get into something you have either A) experience in or B) a keen interest in learning more about. Passion is overrated, deep curiosity is not. - Have a viable, well though out plan to grow the business before you close. You're going to get an operating business, BUT this business will have a massive new debt load. You'll need to grow it - and fast - to minimize this debt loads' impact on the business. - Be ready to submerge. You'll eat drink and sleep this business for the first 12-18 months. Pretend you're going into a submarine for a while, you won't see a lot of friends and family. I promise - it's worth it. - Manage your cash wisely. Watch for wage creep for key employees (they are ALL going to want a raise), push out A/R, move up A/P, watch capex for growth like a hawk. When you're growing at 100% annually like I was, things can get out of control quick. - Pick a business where there a ton of B and C players, and become an A player. Nothing will grow your business faster than just being better than everyone else, and it's easier to do that when you're competing against bozos. Ok, your turn. What would you add? What questions do you have? Please like and RT this, I bet someone in your follower list is thinking about this very thing...