1.
Keep the Business Simple; not a lot of moving parts (employees, overhead,
inventory etc.) The more difficult the business, the more time you will be
required to spend in the business. We don’t want to buy jobs.
2.
Cost of Entry Low* The total investment, “Sweet Spot”, is between 25k and 100k. Maximize
your Return on Investment. Example: if you have a business with a cost of 50k
that returns 50k to 80k in net income per year that is a 100% ROI in a maximum
of 12months. That is amazing. Many businesses in the 25k to 100k is startup
range allow for a ROI of 6 months to 18 months.
3.
Business that is set up to run on a Pactive Basis This means you Actively
Participate on the business not in the day to day activity of the business; act
as a CEO managing the manager.
4. Business that allows immediate growth into
multiple locations or territories.
5.
Business with a High Net Margin of Return Greater than 30%. ** Food has the lowest margin in
business, but some businesses have net margins as high as 60% and more.
*There
are businesses that have limited growth, i.e. Subway etc.
A
Subway that costs $150K to get started has a national average net income to the
owner of $40K. The ROI in this case is $40K
into $150K or 4 plus years.
**There
are Franchises with low margins.