Steve Voros

Aspiring SMB owner looking for established, enduringly profitable businesses. Can close in 90-120 days using SBA loan. Financial resources and deal team ready.

[Steve Voros @SteveJVoros]

@MarindaVannoy1 Even if a product is produced in the US, if everyone starts buying it from domestic manufacturers, there will be simply not enough supply in many cases. This at the very least leads to price increases and in worst case to depression.

[Steve Voros @SteveJVoros]

@SBA_Matthias Way to go!

[The Secret CFO @SecretCFO]

Business growth lives or dies by working capital.

Two business A & B:
Both have the same P&L unit economics
Base Sales = $500k per month
Operating Profit Margin = 10%
Both start with $1m cash in bank.

Both hit a growth vein.
Sales start growing at 15% per month.
Assuming no operating leverage that mean each make operating profit of $1.5m inside 12 months.

But now let's assume both have different working capital models.

Business A has a long working capital cycle:
- 90 days of forward sales in inventory.
- Pays supplier on 30 day terms
- Gives customers 60 day terms

Business B has a leaner working cycle
- 30 days of forward sales in inventory
- Pays suppliers on 90 day terms
- Gives customers 30 day terms

The Income Statements would look identical for both businesses.

Yet when you look at cashflow they are night and day.

At the end of the year Business B is sitting pretty with $3.6m in the bank.

Business A is dead and buried by Month 5.

Optimizing the working capital cycle is one of the most high leverage things you can do for growth.

[Steve Voros @SteveJVoros]

@bentigg Notify

[Ben Tiggelaar 🟠 @bentigg]

12 tactics to find an extremely profitable, cash flowing SMB within 10 miles of your house:

1. get a list of PPP loan data from your geo, filter to best 200 with your criteria (email & cold call). Drop in unannounced live to top 25 and meet the owner

2. send a high value personal gift ($500-$1,000) that you know will get to the owner, 'over the top' is better to any high value targets

3. pay a referral fee up to 3% of purchase price to anyone who refers you a direct deal

4. setup auto deal notifications on biz listing sites for geo & criteria (RT + comment 'notify' and I'll DM you the tool I use)

5. meet every single local biz broker and banker quarterly, in-person is 100% necessary if you're constrained geo

6. call & email surrounding area bankers and brokers (between 25 and 250 miles of your city) every few months. They may rep deals near you.

7. contact all local accountants, lawyers (transaction & estate is gold), consultants, commercial bankers, wealth mgr. Anyone who consults with biz owners.

8. attend entrepreneur/SMB events (meetups, happy hours, EO, YPO)

9. post regularly in local real estate & biz group. SMB owners love real estate, go there.

10. start posting content on Twitter/LinkedIn about your specific geo search, connect with people titled CEO, owner, COO

11. Use @Upwork to buy a fresh list of companies in a certain industry & your target geo for $5 an hour

12. setup referral fee with w other searchers/business buyers in your geo (including PE firms). Have them run a search in their CRM and identify anything local that was too small that they have passed on, pay them a success fee

None of this is easy by any means, requires effort and willingness to put yourself out there. Hardly anyone will do this. I hope you will.

[Steve Voros @SteveJVoros]

@bentigg This is super helpful, thanks for sharing.

[Connor Abene @ConnorAbene]

The easiest way to get burned as an entrepreneur:

Focus excessively on revenue and ignore cash flow management.

Never ends well.

[Eric Hsu @lawyer4SMBs]

Tough but true:

If you’re trying to buy a business, your lack of skills to operate it are a much bigger obstacle than you lack of cash to buy it.

[Steve Voros @SteveJVoros]

@bentigg @SBA_Matthias Makes sense. Strict regulations in Texas are also the reason for limited availability of HELOC. 10 out of 13 banks we connected with so far simply said ‘No’ to HELOC in Texas. It’s possible but takes some effort.

[Steve Voros @SteveJVoros]

@SBA_Matthias @bentigg I live in Texas, but I'm really curious what you think are the biggest advantages of moving here.

[Ben Tiggelaar 🟠 @bentigg]

Insider info: One thing you should know about SMB deals is that most are sold between 3.5x and 4x EBITDA

And it’s not driven by buyers unique valuation of a company…it’s mostly driven by how much debt it can support according to SBA underwriting methodologies…this is NOT related to the ACTUAL quality of the company

Many misunderstand this concept

90% recurring rev B2B services = 4x
Construction GC = 4x

They were sold at the same price, but they are not the same quality of biz

What underpins the max purchase price is SBa lending practices, interest rates, and brokers pricing deals….all this puts a max purchase price in a deal assuming 10% equity / 10% seller note / 80% SBA debt of just over 4x (today)

Knowing *why* and *how* you can pay 4x for an excellent company is where massive wealth is made

[Eric Hsu @lawyer4SMBs]

The top reason business acquisitions fail is simple:

running out of cash.

The reasons they run out of cash:

• Working capital needs

• Wrong purchase price

• Economy as a whole

• Industry challenges

• Poor management

• Hiring difficulties

What else have you seen?

[Ben Carlson @awealthofcs]

The Fed went on one of the most aggressive rate-hiking cycles in history

It's been 18 months yet the unemployment rate hasn't budged, GDP growth is accelerating & housing prices didn't crash

Can we just admit that no one really understands how the US economy works?

[Steve Voros @SteveJVoros]

“Get comfortable with the uncomfortable.”

The best decisions of my life have been made based on this principle.

[Meet Kevin @realMeetKevin]

Exposing a Multibillion Dollar FRAUD | Ft. Vivek Ramaswamy for President.

Retweet to FORCE answers from @VivekGRamaswamy. - We deserve the TRUTH.

[internet hall of fame @InternetH0F]

:/

[Steve Voros @SteveJVoros]

@KimDotcom Of course, it’s always the Americans. Grow up, kid.

[Compounding Quality @QCompounding]

Spend your time, money and energy wisely:

[Steve Voros @SteveJVoros]

@ecb @RemindMe_OfThis in three years

[Dr. Nicole LePera @Theholisticpsyc]

Let's talk about social anxiety disorder.

So many people not at ease with people, need to drink in order to socialize, or fears what people are thinking of them.

HERE'S WHY... (A THREAD 🧵):