Jersey Mike’s: From 1 to 2,000 Stores | Let's Buy a Business

Heyo,

A while back, I had a video that was polarizing. I’m going to talk about it here.

I’ll break down the numbers in a second but I outlined how you can make $500k in years by being a business. (not financial advice as you may not be good at buying, operators, or want to work hard) 😉

I had dozens of people reach out and say that the video was awesome and opened up new possibilities.

But I had another 10 or so, reach out and complain that I forgot taxes, or made it sound easy or I forgot a personal guarantee, or 10 other things.

Yeah of course. If it was easy, everyone would do it.

Not a single person gave me a better way to make $500k in 4 years. Not one. They just complained.

I don’t care really. I thought it was interesting to see people’s view of the world, their insecurities and fears.

PEOPLE PUT THEIR FEARS AND TRAUMAS OF THEMSELVES IN YOU.

Yes, you can get lucky and have stock options at your tech company crush it. Yes, you can sell one huge deal, etc. Get in on Bitcoin in 2014, yeah yeah yeah.

Those aren’t normal or even realistic for most.

This is an exercise. If you wanted to make $500k in 4 years, how would you?

Serious question. How would you?

Personally, I think you can start a business or buy a business.

Super rough numbers and yes, the Math is simple. The equation makes sense. But it’s hard.

I’ve never said buying a business is easy. I’m not selling anything here.

I never said you didn’t need to take some risks. Of course, you do.

SBAs come with a personal guarantee. Unless you take some risks somewhere or have a trust fund somewhere, then you need to take some risks.

I'm not Tony Robbins but the biggest risk most face is being in the same spot in 5 years. No progression.

More specifically, no financial progression.

BUT back to my model.

Many online businesses don’t require more than 10-15 hours a week. Maybe you don’t have that. Whatever. I didn’t say making this was easy.

If you say you don’t have 10 hours a week, then stop listening to this podcast and cut out a bunch of things.

Come up with your own way of making $500k in 4 years.

Business doing $100k a year. Buy for $250k - $350k. 3x multiple. Super common and normal.

$30k down. $270k SBA. Maybe you get lucky and they do a seller note but rare in this size. This takes 15 hours a week. You DON'T quit your day job or pay yourself yet.

You aggressively pay off debt. You will pay it off in 3.5-4 years.

At the same time, businesses of this size can grow at 10-20%. This is conservative. I had someone reach out and tell me my numbers were way too conservative.

20% annual growth will double in 4 years.

Your $300k biz is not worth $600k. You sell in year 4 for a lump sum. Your $30k and hard-earned time got you to $500k.

Where the dealz at?

No deals this week. I got some cool new videos dropping so I spent my time putting together those videos instead.

Check this out instead. 3 YouTube Videos I found this week that changed the way I think.

Peter Cancro bought Jersey Mikes when he was 17 in high school. Over the next 50 years, it franchises to the tune of 2k stores.

Podcast Nuggies:

• Peter raises $125k ($980k in today’s dollars) in 3 days

• Former Football Coach (banker) bets on him

• Giving Back Locally