Why BUYING A Business Often Makes More Sense Than Building One From Scratch with Ace Chapman - Bacon Wrapped Business With Brad Costanzo

Why BUYING A Business Often Makes More Sense Than Building One From Scratch with Ace Chapman

Ace Chapman is a micro private equity investor who has acquired 15 offline businesses (he has sold 13 of them) and 31 online businesses. He is also the author of The Ace Formula, a book on “how to buy a profitable business, starting with no money, and live life on your terms like a boss.” Buy the book! It’s worth it. And make sure you take notes.

Ace bought his first business, CoolWallStreet.com, in the late 90’s at the age of 19. He started as a member of the site which allowed users to invest virtual money in the stock market. When he sold the business in 2001, he was getting 7-figure offers. However, after paying off all remaining expenses, he didn’t really make any profit.
Tip: Buy a business you are passionate about as a consumer because then you know what the other consumers want.

Starting an offline business –
Requires finding a location, paying for the lease (and deposit) and build out, hiring employees, training employees, marketing, etc. And you still end up losing money for months.

**Tip:** Go find the money to get it. You wouldn’t build your computer or car from scratch, so why build a business when you can go buy one?

Buying an offline business –

– Ace’s favorite business deal was a tanning salon, which he sold only six months later for more than double profit. He looked for three key things before purchasing it:
– It had been around for a long time and already had a large customer base.
– The owner needed to sell the business right away.
– It was making great money already.

Dealing with the seller:

– Educate the seller before buying. (It’s not about tricking them.)
– Ask about their customers.
– How many customers are in your database and how often do you contact them (call, mail coupons, etc.)?
– It’s more about terms than price.

Finding a business for sale:

– Tell people that you buy businesses and it will stick in their heads.
– You can build a team of virtual employees who search for deals.
– Build a prospectus.
– Divorce attorneys often have clients who are looking to sell businesses quickly.
– Use a site like LinkedIn where you can connect with owners of the types of businesses you want to buy.
– Events: Drop-shipping, FBA, etc. (This can help you connect with different affiliates who use different techniques and tactics which you can add to your business knowledge.)

Visit Ace Chapman’s website at http://www.AceChapman.com
Questions or comments for Ace? Email him at Ace@AceChapman.com

Check out Ace’s book The Ace Formula on Amazon

What are some of your favorite business books? Email AskBrad@baconwrappedbusiness.com with your suggestions.