DanTheBagMan

In '22 I lost my job, and learned how to "buy a business". One year later I took out over $3M in loans and went for it. Cut to my new life as the bag man…

[DanTheBagMan @youneedbags]

I looked at almost 1,000 businesses before finding Fleet.

Put in your reps, so you are ready to spot the good ones.

It's too easy to think you found one early on when you just don't know what you are looking at. Do your homework, it'll pay off.

[DanTheBagMan @youneedbags]

Most frequent question I've gotten from the @myfirstmilpod was if I could share my broker.

I did not use a buy-side broker, it was the seller's through https://t.co/gYEetlSY9K

Check them out, but my advice is to be sourcing from MANY buy-side brokers in your search area.

[DanTheBagMan @youneedbags]

Biggest tip for new searchers/anyone who wants to buy a business - join @SearchfunderCom! Sign up below and thank me later. See you there.

https://t.co/QRkPISKN5K

[DanTheBagMan @youneedbags]

@AxialCo tl;dr - do you own research and create your own dealflow. Supplement with buy-side searches later with heavy exclusions. Paying a finders fee for a better deal is way better than buying a crap company just because there was no fee associated.

[DanTheBagMan @youneedbags]

Love the reach outs from people who enjoyed the pod! I'll answer some questions here I've gotten lately:

Use a buy-side broker or platform like @AxialCo? My advice: not right away...more details in comments.

[DanTheBagMan @youneedbags]

@AxialCo So should you ever use them? The answer is if they can find better deals for you than you can find on your own. My primary advice is to build up deal-flow, and then EXCLUDE these sources from Axial to ensure you aren't paying for something you would have normally found for free!

[DanTheBagMan @youneedbags]

@AxialCo Lehman Formula:
5% of the first million ($0-$1M)
4% of the second million ($1-$2M)
...
1% of 4M and above

So for a 3.4M deal like mine, that is an extra $128k to pay in a finder's fee!

[DanTheBagMan @youneedbags]

@AxialCo The good - buy-side brokers and platforms like Axial work FOR YOU, not the seller.
The bad - they don't do this for free, which will increase the amount you have to pay for the company. Research the The Lehman Formula (or see below) before you sign up for this.

[DanTheBagMan @youneedbags]

Want to buy a business but don’t know where to start? My go-to recommendation is Buy Then Build by @walkerdeibel - let me know in the comments if you agree, or if you think there is anything better. https://t.co/yo90DoRxu3

[DanTheBagMan @youneedbags]

Had an awesome time on @myfirstmilpod with @ShaanVP and @thesamparr - thanks for having me on! https://t.co/tDW2TKAlFu

[DanTheBagMan @youneedbags]

I am fortunate that I had $150k for a downpayment and $50k available as a loan off my 401(k). But there is still hope if you don't have this. You can get the 10% down payment from other sources. Investors WILL help if you can bring a solid business. We'll explore that model too.

[DanTheBagMan @youneedbags]

You don't have to be rich to buy a business!

For profitable businesses, the SBA let's you finance most of the purchase. The goal of the game is to find a business where you can pay off the loan + interest AND pay yourself in the process. Details in comments.

[DanTheBagMan @youneedbags]

How it worked for me:
Business Price: $3.4M (spoiler: I don't have that much)
SBA Loan: $1.8M
Seller Financing: $1.4M (I'll explain this later)
401(k) Loan: $50k
Cash Required: $150k

[DanTheBagMan @youneedbags]

There is a lot of content about buying businesses - most are people selling courses or telling you how easy it is.

No plans to do that here. Buying a business takes work, but is worth it if you can pull it off. Follow to get the real story of buying a business.

[DanTheBagMan @youneedbags]

@zachmstuck I got you. Shoot me an email - [email protected]. We can start on this right away.