Treating Your Business Like a Private Equity Fund

How much more successful would you be if you had lunch once a week with insanely successful entrepreneurs who share their biggest secrets on how they think and achieve success? Grab your seat at the table because this is business lunch with Roland Frazier and Ryan Deiss.

The next thing would be thinking about structuring this like private equity. So private equity funds differentiate themselves. There was just a really great quote I saw from Jeff Bezos in his last shareholders letter and he said, differentiation is survival. The world wants you to be typical. I was like, that's pretty freakin good that guy. He's going places. And it's really true when you think about what are you going to do to differentiate yourself from everybody else that's out there. Well, I think that you've all got, as Liam Neeson says, a very particular set of skills. Right? You've all got a very particular set of skills. So think about what those are and brainstorm this. And think about it like a private equity fund would. What are we good at? Thorasio says we are good at acquiring E commerce companies that are fba, Amazon, that do between X and Y in income for two to five times when they started. I think that might have changed a little bit now. Profits and then arbitraging them in adding our services and then we make them better. So when you think about that, you're going to have these meetings with people and during the meeting, the consulting meeting, you sprinkle your magic sauce on whatever it is that they have, you help them solve the problems and very often those people are going to offer you equity in the company. I don't ever ask. In those meetings my goal, and I would suggest yours too, is to serve while I'm in that meeting. And I even have people say, well, I want to talk about how to give you equity. I'm like, right now we're here for you. I'm happy to talk about that, but let's get you taken care of right now first. I think that alone is a big differentiation point. But then as you're going through the consult with them, you'll share the brilliant things that you have to share. And here's the thing, you guys might not think the things that you have to share are brilliant, but the people who haven't heard them and don't know them, that don't have the contacts that you have, that haven't done the stuff that you've got, that you've done, that don't have the 10,000 hours that you've put into this, it's really revelatory for them, and it will actually really impact them and change the business. So what you'll find from a differentiation standpoint is that there will be patterns of what you see yourself helping people with. And that's really a place to think about focusing your other effort, which is that, how can I build a portfolio of companies from my consulting that. That I can own and effectively have a private equity fund of my own without raising any money? And so the very first thing is, what's my differentiation point? So you should think about your private equity fund, like your business. We help companies go public through fba, sell to private equity, whatever it is that you do. It could be marketing. I mean, I'm just going for things that I'm thinking of. Right, but whatever you do, we help, you know, people get into. For Karen, you know, we help companies grow dramatically by getting them into retail because that's a big point of differentiation. And you can charge a fee for that. But if you only charge a fee for it, you're missing out on the wealth part. You got the income part, but you're missing out on the wealth part. And here's the thing. They're willing to give you both. They're willing to give you both. So all you have to do is think to ask for it. Because if you go in and you do a consult, you're going to give so much value, they're going to see how much more the company would be worth if they get your attention. The other thing to think about when you're thinking about how do I have my no raise private equity fund is what are the cash alternatives that you can help provide? What are the cash alternatives? Because most companies that are raising money want to raise the money to do something with it. They don't want to raise it just to have it in the bank. Some, some ideas are, and this is how we structure our offers. Let's say the company is valued at $5 million. I'll write back and I'll say, my. My letter of intent. My. My letter of intent is because they've said, we want to have you involved. We have to have you involved. Awesome. Let's. You really mean it? You want to talk about it? Yes, I do. Okay, fantastic. So here's my loi. Two and a half million dollars of value. If it's a $5 million company, I need to come up with two and a half million dollars of value. They're not generally just going to hand it to me without some logic. And even if they do, they'll probably have an advisor somewhere that will tell them this is crazy, you know, you're not getting what you should for the company. So how do you deal with that? In the loi, I break down all of the non cash things and put a value on them. So for us and for a lot of you, because you've already got a business, we have a leadership team so we can share our leadership team and there's a value that's attached to that. It's pretty easy to say if we've got a team that includes a CFO and a chief marketing officer and a chief operating officer, and we're gonna provide that team to you and that team is proven and working right now, and we're gonna provide that team to you for X hours a month or a meeting or whatever it is that it's gonna be that there's a value you can attach to it, staff capacity. So for us, customer service would be one of the things. We can give you our customer service department. We can dedicate a manager and three people under that manager to you to deliver customer service. Now you won't have to raise the money to do that. That's valued. And I do two years, by the way. So I say, so what we anticipate is that we'll Support you for 12 to 24 months with these things and then at the end of that time, your company will be in a position where it should have its own or we'll spin that off to it. But that allows me to put a pretty significant value on it. So If I got three $30,000 people plus a $50,000 supervisor for two years, that's what, 90, 180, 280. That's 280,000. I'm more than 10% of my way to the two and a half million dollar value. A sales team, marketing that could be done or provided or arranged media lines of credit. So one kind of cool thing that you can do is you say, okay, so we've got a, a million dollar a month line of credit with Facebook. And so what we're gonna do is we're going to basically run media for you through our account. And then because that media is returning within 30 days, we'll never have to actually pay that bill. But effectively you've got a half a million dollars or a million dollars or however much we're willing to give them to put towards your media. So that's a really cool thing. Plus it's not cash that's coming out of your pocket, it's just how Do I take advantage of all these things that I've got? Your audience, your partners, your affiliates, all of those are things that are valuable to people in funnel offers where you're willing to put their stuff in your funnel because you have a shared audience. And if you've got synergy, if you've got, like, there's a benefit of having you and them together, there's a good chance that a lot of this stuff you've already nailed and they might not yet have it down, or they might have it down. They just haven't thought about it. And I can tell you, I mean, there's a $300 million business right now we're talking to that doesn't have half of this stuff. Stuff. Right. They have accidentally stumbled into a fantastic offer in a fantastic market, and they can be worth so much more, but they don't know. Right. So don't think this doesn't apply to significant companies, because I say stay away from turnarounds and workouts and all that kind of stuff. Or new companies that aren't yet making a profit. Pre revenue. Go for companies that are actually making money now. Merged profit centers. So you're taking one profit center, putting into another intellectual property sponsors that you might already have, investors that you might already have. There is a thing called a discovery fund that you can put together that basically just charges people money to be able to have access to the people that you've got to either invest or the deal flow you've got. You can do this in the deals that you're presenting to your private equity target. Acquisitions as well. Credit lenders. Tax planning is a big one for me. If you don't have the tax knowledge that I do, you can hire somebody else who does. Who can talk with you about this? Let's see. Supplier contacts. So Perry is very, very connected overseas, and that's very valuable to a lot of companies that don't know where to start to do that if that's part of the expansion plan. Key contractors and of course, your brain, which they would like to pick. Right. So those are all things that you can do. A couple of case studies, too, just to show you kind of how it works. So I had somebody who had a golf business, and he was doing tens of millions of dollars a year. He got into trouble financially because of some changes in what was allowed to be used in certain ads and got in debt a couple of million dollars to Google and Facebook. So the challenge was that the company couldn't just walk away from that. He couldn't Just take the customers and put them in a new company, because that'd be considered a fraudulent transfer. So he was kind of screwed. He's like, I'm going to lose my company and all this stuff I built up. So we reworked the business model, and we got Grant involved to be sure that we did everything in the best way we were able to create a new business model where he went out and licensed the manufactured goods that he had to other people. And we've created several profit centers there right now. And he went from about to go out of business to he just called me and said, hey, I'm ready to get together and consult again. I was like, hey, how's it going? Because I hadn't heard from him in a bit. He said, I did everything that you told me, and I'm taking home $400,000 a month in profit right now. I was like, that's fantastic. And so he rebooked, which will happen to you as well. So we got together, and he said, listen, I just want to thank you for what you did, and I also want you to be involved as we go forward, so I'd like to give you half of my company now. And I was like, well, that's a pretty significant thing to do. Are you sure you want to do that? And he said, I absolutely have no doubt. I just did everything that you told me, and I know that this will be worth significantly more if you're involved, and you guys will have that happen right when you're able to help them improve it. It might take a year, which that one did, to come back around, but you'll find that you have the opportunity to do that. So that's cool, because every couple hundred thousand a month extra helps.

Ever wonder how some people build real wealth through acquisitions, while others just sit on the sidelines? Well, I'm here to tell you it's not about luck. It's about having the right system, the right deals, and the right guidance. And that's exactly what we give you in the epic deal fast track. If you've been thinking about buying a business, but you keep getting stuck, whether it's finding the right deal, structuring the financing, or negotiating with sellers, you are not alone. Too many people waste months, even years just thinking about acquiring a business while the real opportunities pass them by. The epic deal fast track is not another course. It's actually an implementation program. And it's designed to get you from the idea to the acquisition in just 16 weeks or less. We work with you one on one to help you find, fund and close your first or next deal. And once you do, we're going to plug you into our elite EPIC board community so that you can keep scaling through acquisitions. We install three powerful systems in your business. The first is the deal flow engine so you always have high quality off market deals coming to you. Number two, we give you our offer and funding system so that you can structure offers that get accepted and fund them creatively many times with no money out of your own pocket. And number three are closing and integration systems so that you don't just buy a business, you actually successfully run and scale it once you have acquired it. Plus you'll have direct one on one support from an Epic deal advisor every.

Step of the way.

And that's people that have actually come up through this system and done these deals themselves. That's the only way to become an EPIC Deal advisor. And if you're serious about acquiring a business this year, don't just sit on the sidelines. Just text I'm in to 334-458-9034 and we'll get you in. So text I'm in to 334-458-9034. We'll get you in. No fluff, no wasted time, just real deal making from people that are actually out there doing deals right now. I'll see you there.