___ Concepts We Can Learn About _____ From How2Exit's Interview W/ Juan Ignacio Garcia Braschi - Watch Here
Here is what my team and I learned from this interview: (These are notes from team members, writers, sometimes AI, and even listeners who submitted what i learned loosely edited and shared here) - If it seems a bit unrefined, you're reading our notes, so. yeah. -Ron
Concept 1: Flexible Financing For SMBs
Small and medium businesses (SMBs) are the backbone of the global economy. They create jobs, generate revenue, and provide essential services and products to their communities. However, many SMBs face significant challenges when it comes to accessing the financing they need to grow and succeed. Fortunately, there are now innovative solutions that offer flexible financing options specifically tailored to the needs of SMBs.
One such solution is BuPost, a company that helps talented buyers acquire businesses and brokers close their sale mandates by providing flexible financing for buying e-commerce and software as a service businesses. BuPost was created by Juan, a finance and tech expert who has a background in engineering, investment banking, and private equity. Juan had noticed a level of randomness in the way people accessed financing, and wanted to create an easier, more reliable way for SMBs to get the capital they need.
With BuPost, SMBs can access financing quickly and easily. The company looks at a variety of criteria to determine if a business is suitable for financing, including the business’s growth potential, financials, and market position. Buyers are also asked to provide detailed information about their business, such as the number of years in operation, current revenue, and customer base. With this information, BuPost can make an informed decision about whether or not to provide financing.
The financing provided by BuPost is flexible and tailored to the needs of each business. The company offers a range of options, including term loans, lines of credit, and asset-based lending. This allows SMBs to access the capital they need to grow their businesses without being tied to a rigid repayment schedule.
BuPost is helping to revolutionize the way SMBs access financing. By providing flexible financing options tailored to the needs of each business, BuPost is making it easier for SMBs to get the capital they need to succeed. With BuPost, SMBs can access the financing they need to grow and thrive, and make a lasting impact on their communities.
Concept 2: Take Risks To Acquire Businesses
As an acquisition entrepreneur, it is important to understand the risks associated with acquiring businesses. The Small Business Administration (SBA) is a great source of financing for asset-rich businesses, but for those without substantial assets, it can be difficult to access funding. This is why it is important to have the money in your pocket or to seek out private capital from investors.
When it comes to e-commerce stores and software-as-a-service acquisitions, it is important to understand the scope of the marketplace and the risks associated with the acquisition. BuPost has developed an underwriting model to evaluate businesses as if they were going to buy them. This model takes into account the risks associated with the business and helps to ensure that the loan is structured in a way that is beneficial to both the lender and the borrower.
In addition to evaluating the business, it is important to take into account the personal guarantees associated with the loan. If the business does not go well, the borrower may be responsible for paying the debt for life with their own assets. This is why it is important for entrepreneurs to take risks and to understand the risks associated with the acquisition.
Taking risks can be a daunting prospect, but it is often necessary for entrepreneurs to take risks in order to achieve their goals. With the right financing options, entrepreneurs can acquire businesses and make a lasting impact on their communities. By understanding the risks associated with the acquisition and evaluating businesses as if they were going to buy them, entrepreneurs can make informed decisions and take risks to acquire businesses.
Concept 3: Monitor Merchant Accounts For Revenues
One of the most important aspects of acquiring a business is understanding how to monitor merchant accounts for revenues. This is important because it can provide insight into the success of the business and help entrepreneurs make informed decisions. By monitoring merchant accounts, entrepreneurs can ensure that the business is generating sufficient revenues to cover its expenses. This can help entrepreneurs make sure that the business is profitable and that it can continue to grow.
When evaluating a business for acquisition, entrepreneurs should look at the quality of revenues. This can include looking at cohort metrics, such as how users are being acquired and retained. It can also include looking at the positioning of the products within the marketplace, such as whether the competitors have better reviews or worse reviews. Additionally, entrepreneurs should look at financial metrics, such as the profit and loss statement for the past 24 months, seasonality, growth, and margins.
When entrepreneurs have identified a business for acquisition, it is important to understand how to monitor merchant accounts for revenues. This is because it can provide insight into the success of the business and ensure that it is profitable. Additionally, it can provide insight into the commitment of the buyer and the operator. At BuPost, they have a listing page with pre-approved listings from brokers, and they look at two blocks when evaluating businesses: quality of revenues and financial metrics. They also look at the buyer and the operator, such as their management skills and track record in owning, buying, and operating businesses.
Ultimately, monitoring merchant accounts for revenues is an important step for entrepreneurs to take when acquiring a business. By understanding the risks associated with the acquisition and evaluating businesses as if they were going to buy them, entrepreneurs can make informed decisions and take risks to acquire businesses. Additionally, monitoring merchant accounts for revenues can provide insight into the success of the business and ensure that it is profitable. With the right financing options, entrepreneurs can acquire businesses and make a lasting impact on their communities.
Concept 4: Find Alternative Financing Sources
However, not all businesses are eligible for financing from the same sources. Some businesses, such as those related to supplements, jewelry, and low-priced electronics, may not be eligible for funding from certain lenders. In such cases, entrepreneurs should look for alternative financing sources.
One alternative financing source is venture capital. Venture capital firms provide capital to businesses in exchange for equity. This type of financing is often used by start-ups and businesses in the early stages of growth. Venture capital firms typically focus on businesses that have a high potential for growth and can provide a return on investment.
Angel investors are another alternative financing source. Angel investors are typically wealthy individuals who provide capital to businesses in exchange for equity. Unlike venture capital firms, angel investors usually invest in businesses that are in the early stages of growth and have a high potential for success.
Finally, entrepreneurs can also look to crowdfunding as an alternative financing source. Crowdfunding is a type of financing in which entrepreneurs solicit funds from a large group of people. This type of financing is often used by entrepreneurs who are looking to launch a new product or service. Crowdfunding can provide entrepreneurs with the capital they need to launch their business without having to rely on traditional financing sources.
In conclusion, entrepreneurs should always be prepared to find alternative financing sources when acquiring a business. By understanding the risks associated with the acquisition and evaluating businesses as if they were going to buy them, entrepreneurs can make informed decisions and take risks to acquire businesses. Additionally, entrepreneurs should consider venture capital, angel investors, and crowdfunding as alternative financing sources when traditional sources are not available. With the right financing options, entrepreneurs can acquire businesses and make a lasting impact on their communities.
Concept 5: Find The Right Funding
Finding the right funding to acquire a business can be a complex and daunting task. With the right knowledge and resources, entrepreneurs can make informed decisions when evaluating potential financing sources. Traditional sources of financing, such as bank loans, are often the first choice for entrepreneurs. However, these can be difficult to obtain, especially for small businesses or start-ups. Additionally, banks often require collateral and may require personal guarantees, which can be a risk for entrepreneurs.
Alternative sources of financing, such as venture capital, angel investors, and crowdfunding, can also be explored. Venture capital is a form of financing that involves raising money from investors in exchange for equity in the business. Angel investors are wealthy individuals who provide capital to businesses in exchange for equity. Crowdfunding is a form of financing where entrepreneurs raise money from a large pool of investors. This is often done through online platforms and can be a great way to raise funds without having to give up equity in the business.
When evaluating financing sources, entrepreneurs should consider the risks associated with the acquisition. This includes the financial risk, operational risk, and legal risk. The financial risk includes the ability to repay the loan or the ability to generate sufficient revenue to cover the costs of the acquisition. Operational risks include the potential for operational disruption or the potential for the business to fail. Legal risks include potential legal liabilities and the potential for regulatory issues.
Entrepreneurs should also evaluate potential businesses as if they were going to buy them. This includes researching the business, evaluating the financials, and understanding the competitive landscape. Additionally, entrepreneurs should consider the potential opportunities and challenges associated with the acquisition. By researching the business and understanding the risks associated with the acquisition, entrepreneurs can make informed decisions and take risks to acquire businesses.
Finding the right funding to acquire a business is an important part of the process. With the right knowledge and resources, entrepreneurs can make informed decisions when evaluating potential financing sources. Additionally, entrepreneurs should consider venture capital, angel investors, and crowdfunding as alternative financing sources when traditional sources are not available. With the right financing options, entrepreneurs can acquire businesses and make a lasting impact on their communities.
Concept 6: Partner With The Right Person
Partnering with the right person is essential for any successful business acquisition. When evaluating potential funding sources, entrepreneurs should consider the person or entity behind the financing. A good partner will have the knowledge and experience to help guide the acquisition process and provide advice on how to best manage the business. Additionally, the partner should have a good understanding of the business, the industry, and the local market.
When selecting a partner, entrepreneurs should also consider their personal values and goals. The partner should have a similar vision and mission to the entrepreneur and should be committed to helping them achieve their goals. Additionally, the partner should be willing to work with the entrepreneur to ensure that the acquisition process is successful.
At the same time, it is important to consider the type of financing being offered. Different financing sources have different requirements, terms, and restrictions. Additionally, the financing source should have the resources to provide the necessary capital to complete the acquisition.
Finally, entrepreneurs should also consider the terms of the financing. The terms should be flexible enough to provide the entrepreneur with the capital they need to acquire the business. Additionally, the terms should be fair and provide the entrepreneur with enough time to pay back the loan.
When acquiring a business, partnering with the right person is essential. Entrepreneurs should evaluate potential financing sources and partners to ensure that they are getting the best deal possible. Additionally, the terms of the financing should be fair and provide the entrepreneur with enough time to pay back the loan. With the right partner and financing, entrepreneurs can acquire businesses and make a lasting impact on their communities.
Concept 7: Raise Funds To Lend Out
One of the most popular financing sources for business acquisitions is a revenue-based loan. This type of loan is based on the revenue of the business and is typically repaid over a five-year period. The interest rate is typically between 12-15% and the loan is paid back in monthly installments. The percentage of revenue paid back depends on the amount of the loan and the profit margin of the business. This allows entrepreneurs to keep enough cash flow and headroom for their business to grow.
Raising funds for lending out is an important part of the loan process. Bupos, a lending company, recently closed a funding round in December 2021. They use an algorithm to identify businesses that are a good fit for their clients and can help them grow. They also have a comprehensive database of their clients’ interests and use this data to send businesses their way. This helps entrepreneurs acquire businesses that fit their target market and niche.
Raising funds to lend out is a great way to help entrepreneurs acquire businesses and make a lasting impact on their communities. By partnering with the right financing source and evaluating potential partners, entrepreneurs can ensure that they are getting the best deal possible. With the right financing and partner, entrepreneurs can acquire businesses and make a lasting impact.
Concept 8: Amazon Business Risky Investment
However, when it comes to Amazon businesses, it is important to understand the risks associated with such an investment. Amazon has a history of changing the terms of their agreements, which can lead to unexpected costs and losses for entrepreneurs. Additionally, Amazon has the power to take products in-house and sell them at a discounted rate, which can lead to a decrease in profits for entrepreneurs.
Furthermore, Amazon can change the terms of their affiliate program, which can drastically reduce the amount of money an entrepreneur can make from their investments. This can be incredibly detrimental to an entrepreneur’s bottom line, as they may not be able to make up the lost profits.
Overall, investing in an Amazon business is a risky endeavor, as there are many potential pitfalls associated with the company. Entrepreneurs should consider all of the risks before investing in such a business, as the potential losses could be significant. Additionally, entrepreneurs should consider partnering with the right financing source and evaluating potential partners, as this can help them ensure that they are getting the best deal possible. By understanding the risks associated with Amazon businesses and taking the necessary steps to protect their investments, entrepreneurs can make a lasting impact on their communities and achieve their goals.
Concept 9: Funding E-Commerce Is Possible
Funding e-commerce is possible, and there are many options available to entrepreneurs who are looking to finance their Amazon business. One of the most popular sources of funding is venture capital, which is often used to finance start-ups and early-stage companies. Venture capitalists provide capital in exchange for equity in the company and often provide guidance and support to the business. Another option is debt financing, which is often used to finance the purchase of inventory, equipment, and other expenses associated with running an Amazon business. Additionally, entrepreneurs can also apply for loans from banks and other financial institutions, which provide capital in exchange for a predetermined interest rate.
For entrepreneurs who are looking to fund their Amazon business, it is important to consider all of the available options and evaluate the risks associated with each. Additionally, it is important to partner with the right financing source, as this can help ensure that the entrepreneur is getting the best deal possible. Additionally, entrepreneurs should also consider the potential pitfalls associated with Amazon businesses, as the company has the power to make changes that could affect their business. Finally, entrepreneurs should also be aware of the aggregator space, which provides a potential solution to the problem of financing an Amazon business. By understanding the risks associated with Amazon businesses and taking the necessary steps to protect their investments, entrepreneurs can make a lasting impact on their communities and achieve their goals.
Concept 10: Grow Faster With TIEPM
One such solution is The Investors and Entrepreneurs Professional Mastermind (TIEPM). TIEPM is a peer-to-peer mastermind platform that combines traditional peer-to-peer mastermind principles with accountability partnering. This platform helps entrepreneurs to set goals, take action, and get results faster than they would on their own. TIEPM provides entrepreneurs with the resources they need to make the right decisions when it comes to financing their Amazon business. With the help of TIEPM, entrepreneurs can access capital more quickly and efficiently, as well as receive advice from experienced professionals.
Additionally, TIEPM helps entrepreneurs to identify potential pitfalls associated with Amazon businesses. They provide guidance on how to navigate the Amazon platform and make informed decisions that will benefit their businesses. With the help of TIEPM, entrepreneurs can make sure that they are taking the necessary steps to protect their investments and maximize their success.
TIEPM also provides entrepreneurs with the opportunity to network with other professionals in the space. This allows entrepreneurs to gain insight into the industry and learn from the experiences of other entrepreneurs. By networking with other professionals, entrepreneurs can gain access to the resources they need to make their Amazon business a success.
Overall, TIEPM is a great resource for entrepreneurs looking to fund their Amazon business. By understanding the risks associated with Amazon businesses and taking the necessary steps to protect their investments, entrepreneurs can make a lasting impact on their communities and achieve their goals. With the help of TIEPM, entrepreneurs can access capital more quickly and efficiently, as well as receive advice from experienced professionals. By leveraging the resources available on the TIEPM platform, entrepreneurs can scale their business and achieve success faster than they would on their own.
---- MORE COOL STUFF ---
Are you ready to take your podcast listening to the next level? Subscribe to "DEEPER by How2Exit" newsletter and never miss out on our latest episodes. Join our newsletter HERE
Want to stay in touch with what's happening in the Main Street M&A Space? Subscribe to The Hub - Acquisitions Hub
