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hi my name is Jeremy Harbor, this exclusive video is brought to you in conjunction with Turnkeywebpublishing.
I run an experiential training course called the harbor club where I teach people how to buy fix and sell businesses often distressed companies or companies that are motivated to exit in in some way and a lot of people ask me why would you buy a business in the first place well I’ll tell you what when I first started out in business I thought basically you had to start something and work really really hard and for years that paradigm was reinforced by all the books that I read the people that I met the conversations that I had and then one time I was running my telecoms company and telecoms is quite acquisitive so I was always having people come to meetings who are trying to buy me and the one thing they all seem to have in common is that they weren’t going to put any money on the table up front in order to complete the the transaction and that kind of got me thinking well I haven’t got any money maybe I could buy a business so I started looking for motivated sellers people that might want to sell their business and after a while I managed to find a 13-year old telecoms company and where they’d put in all the blood sweat and years to build it up to to where it was but they had some very specific motivations and I was able to complete a deal where we bought that business with no money up front and we didn’t borrow any money from the bank or from the vendor in order to in order to do it or from outside investors and I had this huge paradigm shift as soon as this happened you see for years and years I’ve been running the marathon whereas really all I needed to do was run the last ten yards and I’d still get the medal so it completely changed the way I started to to think about business you see um when you grow by acquisition literally it’s like a light switch is switched on want that morning you have you know so many customers that afternoon you literally grow by a year or more revenue in an afternoon and you haven’t had any of the risky sales and marketing tactics which invariably don’t work properly you haven’t had any of the stress or managing of additional staff in order to get there just by doing one simple deal you can make a huge difference to your to your business now on the harbor club we teach people how you can find opportunities using our sourcing techniques to find a consistent flow of these these distressed and motivated sellers we teach you how to hold a meeting with them so that you can get the best out of the meeting and get a deal where there is no money down remember these aren’t businesses for sale these are businesses that are off the market so to speak and we teach you a whole load of tactics they’re like kind of cookie cutter systems for how you can put these no money deals no money down deals together and we really focus on not using upfront capital and not using any kind of borrowing whether it be from the bank or from investors and outside investors so these really are true no money down transactions we then run through a whole range of tactics for fixing businesses if they have some sort of financial problem and that covers everything from insolvency tactics and the insolvency law right the way through to some really clever kind of street fighter style tactics for fixing cash flow and fixing profitability after we’ve done that we talked about exiting so how do you sell one of these companies shortly after buying it we’re now able to buy a business for nothing and very shortly afterwards sell it for six or even seven figures so we teach you how to do all of these things throughout the course of the harbor club but even if you’re not looking to get into buying and selling businesses and you just have an existing business I still think that growing by acquisition is the best way to to ensure rapid growth I hope to see you soon thank you hi my name is Jeremy Harbor I’m going to talk today about growing your business by acquisition and I had an epiphany a few years ago when effectively I grew my business by a year’s worth of sales in an afternoon and it didn’t cost me any money and I didn’t have to take any risks with sales and marketing type techniques but before I get into that if we go back to the start growing up I was always quite entrepreneurial in fact I started a business when I was 14 years old my left school when I was fifteen to go and pursue that business in fact I went spectacularly bust when I was 19 which is a great lesson in humility I think everyone needs a good kick in the nuts when they’re a bit young and and cocky I hope it was a really useful experience and actually it’s really helped me in later life to be able to empathize with businesses that are in trouble because I know exactly what it feels like to to be in their shoes so basically I was running businesses like this I I was always a firm believer that if you wanted to be successful you know you had to start a business and you had to work really hard and and I did sacrifice everything you know I put in the blood the sweat and the years into growing into growing my businesses at the expense of almost everything else in my in my life and it was great fun it’s a rite of passage I think everyone should start a business and have that experience but one of the things I realized I was growing a telecoms company at the time and we’ve grown very quickly organically you know so I think in our first year we did a few hundred thousand the next year we doubled that the year after that we doubled it again and an interesting thing happened we obviously appeared on the radar of quite a few of our competitors now our competitors were looking at buying buying us out because obviously they could add our revenue to their business but they didn’t have to take all of our costs so they could get rid of our office and our staff and everything else and just add the the profitable revenue which meant that they would get a much much bigger upside from buying our business than they would than we would get from our own our own business so I basically spent every week having meetings with these various different telecoms company bosses who were trying to pitch me and that’s the only way to describe it really pitch me on why I should sell to them and how I should do a deal and the reason it was a pitch was because there wasn’t going to be any money upfront all of these deal structures were quite creative they were all targeting things that I needed and wanted and that would would help fulfil it fulfill other needs but ultimately all the jam was tomorrow so there wasn’t going to be anything anything up from now fortunately I had quite a few of these meetings I think I think too many people are negative on the on the phone when people ring up and and don’t have meetings but I think I always took the view that it’s a it’s part of my business education to meet as many people as possible and talk about what it is there they’re looking to do and sure enough after a while what happened was instead of me having two or three opportunities to choose from I ended up with sort of 15 opportunities and then it made me start to think about everything a little bit differently and the thought process I had was pretty much well at the time I didn’t have any money at all so maybe I could buy a business maybe I could use the same type of strategy they were doing in order to grow my telecoms company and so I decided to just go out there and start talking about wanting to find a business now a really interesting thing happens when you go out and start telling people what you want lots of little signposts pop up that weren’t there before in fact all the same conversations you used to have suddenly with this new pair of spectacles on there’s new opportunities and it didn’t it didn’t take long before I started to get opportunities to talk to other telecoms companies about the possibility of buying them and I got a few slaps around the face you know from not being a not being able to come up with any cash but sooner or later I found a 13 year old telecoms company that was based in the UK it had some great customers Nintendo was one of its customers and I was able to structure a deal with him because he had particular motivations that I was able to satisfy I was able to structure a deal with him where I bought the business for no cash upfront whatsoever and also I didn’t have any borrowing I didn’t borrow money from the bank I didn’t borrow money from the guy that was selling me the business I didn’t have to take on investors capital to complete this deal and like I say I effectively grew the business by a year’s worth of revenue in an afternoon and I had an epiphany and I don’t need to start a business and work really hard I don’t need to put all the blood sweat and years in that I’ve been putting him before I can just do you know I don’t have to run the marathon I can just do the last ten yards and I still get the trophy and that was a really important epiphany for me and it suddenly made me realize that you know maybe I’d been doing it wrong all these years or not wrong but just not the right way so and the funny thing was now when I started looking back at all the books and all the things that I’ve read before with this new idea that you can just run the last ten yards of the marathon and still get the trophy I realized that everybody I thought was telling me to start a business and work really hard they’d all made their money doing deals in fact all of the dragons on dragons den you know bought or sold businesses is the way that they accelerated their success and their and their wealth so it was almost like well it was a complete paradigm shift I completely changed the way that that I looked at business and it was around about this time I basically having had that epiphany I went on a little bit of a rampage and I ended up buying lots and lots of businesses and in the space of 18 months I built up a sort of mini Empire of businesses turning over about thirteen and a half million pounds a year on a sort of monthly run rate we had about 135 staff all based around the hartfordshire area in the in the UK and and yeah I became extremely extremely busy and busy doing all of that I bought a seminar company was one of the businesses I bought and this seminar company taught people various business skills and business techniques and out of the back of that I kind of thought well how would I teach people what I do and it was actually at one of their seminars I started to write a little a little script down of of how I would do how I would do a training course one of the first things I realized is actually to learn how to buy a business you really need to buy a business you know because it’s an it’s an experiential thing so I titled this this course the harbor club and I wrote down all the things that would make it interesting for the participant so how would they saw steals how would they effectively continuously saw steals you know because they’re not where you think they are they’re not with accountants or insolvency practitioners or people like that how would they get to have a meeting with these people because if you ask the average entrepreneur how’s business you know generally it’s their best month ever isn’t it so you need to be able to have an honest conversation with the entrepreneur about how things are going and and what it is they then needed to understand the no-money-down deal structures that you can use because there’s lots of different ones in fact on the harbor club course we have six core no-money-down strategies there’s actually kind of seven or eight altogether but there’s six core no-money-down strategies that we work through which shows shows things like how I was able to buy an air conditioning company for a pound where we met them at nine o’clock in the morning and at 5:00 p.m. the same day we’re being introduced to the staff as the new owner and then go on and sell that later for six figures how we bought a furniture manufacturer for a pound one hundred percent and and again we’re able to turn that around and sell that on in a very short space of time and a whole load of other stuff so a call center business we bought a gym and spa it was a health club fifteen thousand square foot health club that cost 3.2 million to fit out just a few years before that we were able to buy lock stock and barrel and actually the way the deal was structured we ended up 25 thousand pounds in front after the deal was deal was completed so there’s some really really interesting techniques that we’ve we’ve stuck in there and everything is backed up with real case studies and not only do we use the real case studies with the real company names but we also give you the documents that we used when we completed those deals so all of the you know contracts and spreadsheets and correct and questionnaires and things like that that we’ve we’ve had to dopa had to do now people often ask how would you buy a business for no money and my facetious answer is you need to start with no money and try and buy a business a bit like I did with that first that first telecoms company because necessity is the is the mother of invention so I bundled all of that into into this course called the called the harbor club to give people the complete package on how to how to do things and the harbor club’s been running very successfully since 2009 the references and things that people give us for it always incredibly flattering and very very positive but actually quite a few people just want to come along to learn how to grow their business by acquisition so they’re not so interested in all the turnaround techniques and the the insolvency tactics and the exit exit side of it really in the beginning what they’re looking to do is what I did in the first place which is to grow that company by a year’s worth of revenue in an afternoon now in order to grow by acquisition actually one of the most important things is how you find motivated sellers because these people aren’t always in distress but they are motivated so you need a consistent tactic that will get you those people now they’re not with insolvency practitioners they’re not with accountants they’re not with business brokers so where do you find businesses that actually aren’t really for sale that you can then put these put these deals together with the next thing is then how you have the meeting with them so that you can have a proper conversation about getting a getting a deal done and then we go into the sort of legal protection how you protect yourself from not getting yourself into trouble you wouldn’t like to buy a company that’s potentially insolvent and then it’d destroy the business that you have already now it’s very simple not to get into trouble like that but as long as you know how and then the next thing is the deal structuring so how do you actually put a deal together where you’re not borrowing money and you’re not paying anything upfront for the for the business so we go through all the systems you need to do that and then how do you how do you reduce all your upfront costs in doing the deal so we show you how you do it without any legal fees without any accounting fees without any cost of due diligence we have a really smart system for taking all the due diligence costs out of them out of doing the deal we tell you exactly how I bought businesses how I found them how we got the deal done the whole thing and then if you feel that you want to take everything a step further you can come on one of my harbor club courses where we’d fill in all the gaps in terms of how you do the financial engineering the seven steps to fixing a company’s cash flow for example we bought a an air conditioning company that had a hadn’t paid its payroll for two months it was 10,000 pounds overdrawn we were able to fix that within about six weeks so that all the payroll was caught up and it constantly had cash in the bank we bought another business that was 85,000 pounds overdrawn it payroll was due in a week and the overdraft was personally guaranteed by the owners so the deal we did there was if we could get you off the personal guarantee and we can pay the payroll could we have the company to which they said yes and then we used a really clever tactic which meant we didn’t have to put any money in ourselves but we managed to get the overdraft back to zero get the the bank guarantee cancelled and we were also able to get the payroll met on time and ended up with the company which we were later able to sell for sell for six figures so that’s one of the case studies that we use in the in the course so if you’d like to find out more have a look at it see see how that works and then maybe I’ll see you on a harder club one day in the future thank you for listening enjoyed this video grab your free PDF report about how to buy and sell companies for a living without having to use any capital or debt go now to harbor club events calm / report you
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