I wanted to know… and I bet you do too!
As a business broker, advisor, and valuation expert for several decades, I was visiting and evaluating businesses on a daily basis. I discovered some business owners were working like crazy for 50, 60, 70, 80 or more hours a week. Then I would visit a business where the owner was working much less, (20 hours or less a week) and making as much or often much more as their overworked counterparts and sometimes competitors.
I investigated businesses: due diligence on employees, contractors, processes, books, tax returns, systems, owner behaviors and habits, hiring, delegating, managing, marketing metrics, data, etc. I compiled libraries of information and data.
What I Learned:
99.8% of business owners did not have an accurate job description (most had none at all.) They started a business and did whatever was needed to survive and hopefully grow. Nothing wrong with that… however, while the business had greatly changed, their roles had not. Years into the business they were often performing menial tasks, making outdated (and often) costly economic decisions, and suffering from WREC (Working at a Reduced Effectiveness Capacity.)
Out of reacting to the necessities during the business building period, business owners let the business define their roles. They never redefined their positions to take control.
Every business that succeeds experiences four distinct stages. At each epoch the business needs change and requires a new owner role. Yet few business owners change for the new roles… very few. -> Keep in mind that 92% of all businesses end in failure… and of the remaining that succeed, most all could have done even better.
After you have built a profitable business and you reach the third stage of Business Growth, where a strategic position is required:
You need new behaviors, different skills and a new mindset.
Your business needs the best systems, processes, and formulas available.
The average small business owner is overworking by more than 225% and under performing at less than 30% of their TRUE capacity.
I gathered all that information and studied the systems, formulas, and processes these highly successful businesses had in place. I combined some, improved others, and implemented some of my own systems.
You have probably heard of ROI (Return On Investment). But what about the business owner’s ROE? Every business owner needs to know their ROE (Return On Effort) ratio yet I have not met one that does.
I developed the Business Owner ROE formula and will show you how to measure yours. Then with the ROE strategy you will discover how to reverse the scales of work versus income. Work less make more!
To test my program I bought a business with the intention of applying all these systems, formulas, and processes. Within two weeks I was working less than 10 hours a week at the business and receiving a full time income. I doubled the business profit and less than a year later I sold the same business for more than twice what I had paid!
Since Then I Have Owned Businesses That Paid as Much as $300,000 A Year Working Only Two Hours A Week!
So for the next two decades I bought and sold privately held businesses at a profit.
You could say I ‘flipped’ businesses… businesses of all types. This was not a solo effort, I had assembled a skilled and versatile team including managers, accountants, agents, attorneys, etc.
I Discovered In Most Every Case, Using My Formulas
You Can Grow More and Make More By Working Less!
In each business I implemented my systems and processes and developed ‘growth versus effort’ algorithms and metrics. I applied my systems and processes to a myriad of industries including accounting firms, fabricators, health practices, manufacturing, marketing agencies, sales, technology based, service based, professional practices, and more.
Flipping small businesses is not for the faint of heart or inexperienced. The goal was to at least double the value of each business in 12 months or less. We did this successfully and repeatedly on an unmatched scale.
Increasing the value of a business 2x, 3x or more was not about increasing the assets of the business. We would double or triple cash flow and that had to reflect in profit. While I have failed at start up businesses more than once, we were 100% successful flipping businesses.