Mike Minutes Mastermind 06/21/2023

Hello, guest nation. Hope you're doing well. Let's go ahead and jump in.

Just put this into Facebook real quick. There's several questions I think that came in.

It is pouring down rain here.

We are getting people canceling because of the rain, which is not fun. Throwing a monkey wrench into my plans.

See here Facebook.

All right, let's get started.

Boom. All right, let's present Share screen.

We got four. All right, Travis from North Carolina. Hey, Mike, do you have any suggestions on getting a good health insurance for us as owners that are not on our spouse's health insurance? Mine is not as good as it used to be.

There is the Allied benefits through.

The insurance on the preferred vendor portal. That's what we use. What I'd recommend doing is trying to get to three people as fast as possible. That could be you, your spouse, and an employee. And then you can have group health insurance. That's probably gonna be your best bet, honestly. And you just need one employee essentially to get on there. And then you should be able to do group. I would say you want. You might want to look at too. I think QuickBooks might have been able to get this removed. And that is where you can just do two people or even one. So you may want to look into that. If I was to do it again, I would probably do my health insurance through QuickBooks. Be like a 50, 50 split. There are definitely drawbacks, like pricing is maybe a touch more than you might get elsewhere, but there's definitely upsides to having.

The integration directly in the payroll of QuickBooks. Like, it's super integrated, so I'd pretty willing to pay an extra little, you know, few percentage points for the extra convenience. But if you want to get a free quote, you could just go check out on the deals page of Dashboard through Allstate. There we go. I was blanking there. Allstate does it. That's called Allied benefits and they have a preferred vendorship vendor with us. So feel free if you want to fill out the form. They'll get you a quote within a week usually.

But honestly, I would say QuickBooks if you're doing payroll through it or Gusto if you're doing payroll through it, just get health insurance through there. It's so integrated. It's nice. Devin from Red Deer. If you gross $1 million, can you take out big loans to buy more businesses? They fitness anytime Fitness for a million dollars? No, you're grossing $1 million. Even if the business has been around for five or ten years and been business leading that the bank is not going to give you a million dollar line of credit to spend on whatever you want. They might give you a collateralized loan against like real estate or equipment, but they're not just going to give you $1 million. What you're thinking about is, you're thinking about like margin. And so you hear, what you hear is you hear people talk about how like they take loans against their business.

Once they become billionaires and then basically they live off the loans. That's, that's typically loans against their publicly traded stocks or real estate, both of which you can get much lower interest rates because they're.

They'Re equitable, like they're liquid. And you can just, they're very easy to find value of them. So securities and equities that have.

A marketable price very easily, real estate and then like what's on the stock price is like very easy to find. Typically you can get the lowest mar, lowest percentage loans against them. So that's called margin. And you are not going to get margin on a privately held business that has a million dollars in annual revenue. You'd be lucky to honestly get any sort of like a margin loan. You have to, you have to have publicly traded stocks to have margin technically. But you could get loans against your business even at like 25, $30 million. Like getting an just actual loan against equity you have in a business is like, still gonna be tough. They'll give you a line of credit. That's usually what you're gonna go for. And on a million dollar business, you could potentially get like a quarter million, half a million dollars line of credit if you have very profitable.

Months, very profitable years for multiple consecutive years. The thing is, the bank is always wondering why do you want this line of credit? That's just, they're always asking and if you never have used debt, if you're profitable and they're like, and you're like, yeah, I need, I need this massive amount of debt. They're gonna, only reason they're gonna ever give you one is because of seasonality. And then you have to prove like, I need this much revenue, this much cash backstop during the spring rush. You'd have to prove it. So they're just not going to give you money, give you a large line of credit without expressing the need and what you're going to do with it.

Kyle Tarvin, is there a way we can make web chats more efficient in terms of time? We're currently paying 500 for just web chats. I don't want to Turn them off. As I know we do get leads but it from it but looks looking to reduce our CC build as much as possible forward, maybe integrate some sort of structure like automatic replies like what's your address? Phone number, email. Just a thought. Things. The thing with web chats is yes, they take a long time because they usually take 10 to 15 minutes to get someone's information, all the rest of it. So if you want to disable it, you absolutely can do that. The thing about web chats is the reason people are doing it is because it's a live person. And if you ask yourself like when you went to a web chat the last time you and you were looking for support and you can tell immediately if this is like completely automated and they're like, please enter these things in whatever it might be. Because a lot of times the web chats are not just new leads, it's also customer service. People will contact and be like, I want to cancel tomorrow's service. They'll, they'll contact and they'll say, I need to change my billing. And then we'll be able to send them, hey, here's a link. You can fill out the form or whatever. So it's not just new leads. If it was just new leads, then we'd be able to probably do more of like a form. But again, if they were, if they're going to do a form like that, they should just go to the contact form and fill that out, right? So eventually we're gonna have to switch providers on the web chat. It's just gonna be extremely expensive.

Like right now it's a very good cost solution and we don't have to pass that expense on to anyone because just it's cheap enough. But if like we were pricing out some other ones because as many pages as we have and it was going to be a few thousand dollars a month, it's not so much as pages, it's the amount of users that we have inside of it at command center. So.

Yeah, this is something that's kind of on my, my radar for this winter. Looking at like potentially switching and there are certain prompts and things like that you can do. But as soon as someone picks up on the fact that they can't just go in there and ask specific things, they tend to not use it, which is fine. If you want to disable it, you can absolutely do that. Because they can still submit a contact form, right? They can still submit an estimate request form too. They typically will go to that if they are looking to Talk to somebody. Because remember as they're looking at that, they're literally right next to the estimate request form. So if all they want to do is submit their information, they would just do that. So.

Ken, is there, is it okay to send your stuff that you think is relevant on Facebook method, or should we send it some other way? Is it okay to send you stuff that we think is relevant on Facebook messenger or should we. I rarely check it, honestly. Like I look at it sporadically. Facebook Messenger. Facebook Messenger. Facebook Messenger. Where is it?

Yeah, I wouldn't, I wouldn't send me like links to other stuff, like videos and stuff. I, I will almost never honestly open it up, to be perfectly honest. So.

Yeah, if there's something you need. Absolutely. But I, I would email me far, far more often. I'd get that. So, yeah, franchise at Augusta Longer services dot com. Cool.

All right, I think that's all I had there. Let's check here.

What do you need to get a loan? What? What do you need to get a loan for a million dollars to buy a business at 20% down? How would you get approved? I would probably not be doing 20% down. I'd probably try to get an SBA loan. 7A. Would you do 10% down? What you're going to need is a business that can still cash flow after paying the loan. So on a million dollar note, you're probably looking at.

$150,000 at least in the year of just paying down that mortgage. Probably more. Probably 1, 170 000amonth or 170000 a year. So if that business is say doing 200000 in profit and someone's selling it for a million dollars because they're like it's worth three times profit plus I have, you know, a bunch of equipment. Great.

$200,000 just became almost zero simply due to the fact that you have to pay off that mortgage now. So what the SBA is looking for is a business that will still cash flow and be healthy after debt service. When you're getting a business, you are not buying a asset in the form of like a truck or piece of equipment that has a value. You're buying a cash flowing vehicle and that vehicle is going to be judged by the bank based upon their profit and loss statements and their balance sheet. So similar to when you're buying commercial real estate, it's more about like rent and cash flows and less about the actual building and comps like comparable home sales. The same thing is true with businesses it's much more about the financial statements of the existing business and whether or not it's healthy and able to substantiate the impact of having debt burden. So.

All right, everyone, have a fantastic Wednesday. We'll see you tomorrow.