Heyo,

Let’s dive into assets. What’s an asset?

It could be a website, patents, trademarks, trucks, buildings, etc. Basically, it can be almost anything.

Assets are needed and a part of every business. Here is where valuing them gets tricky.

Sellers think their assets are separate than the value of their business. In most cases this is false. In some cases, this is true like inventory.

Let’s dive into a scenario where this is false. The assets in the business kick off a certain amount of cash flow. If you take the assets out of the business and sell them separately, then there is no business.

If you sell the trucks of a plumbing business without the company, the company then has to go buy more trucks.

If you have 100 courses created for your business and it cost you $100k, those aren’t necessarily valued at $100k (replacement cost) but are valued on the cash they generate which could be $1M or even $0.

Assets are not separate from the business. They ARE the business.

How to Buy Your First Small Business through Acquisition Entrepreneurship

I dive into the general numbers of SBA failure rates…

In a nutshell:

• 5-2% failure rates each year from a total loan value.

• 2014-2023 - Mostly attractive economy

• 2020-2023 - Recent loans have not failed yet….

1. SBA Prequalified: 8+ Year Old Pet Brand | +62% YOY Rev | 43% Net Profit Margin

Revenue: $745k

Earnings: $322k

Asking Price: $1.16M

I like the diversified SKUs, product niche and history. This is SBA eligible which means with $100k-200k you can take over this business. It most likely doesn't require full time effort and can keep your day job.

What I don't like...if you don't know Amazon, you don't know Amazon. It is a great way to get into the eCom game here though.

What don't I like? The multiple. It may be justified but you'll need a chunk of seller financing (seller note or earn out) IMO.

Click Here To View The Listing »

2. Passive Calisthenics Workout Blog | Subscription Revenue | 10+ Years Old | Solid Growth

Revenue: $145k

Earnings: $95k

Price: $315k

Tons of pageviews, great aged domain, great demographic in the older males, etc. The owner hasn't been active (not sure what that means) but if that's the case, there should be low-hanging fruit and/or allow you to run this without quitting the day job.

What I don't like...the price. It's small so you aren't going to really support a family on this if you have any debt payments. Debt options for this are usually limited and need $300k ish to buy it.

Click Here To View The Listing »

3. Affiliate - Dog Care and Product Reviews - $6.4K Gross/Mo

Not a lot of info on the listing here but $77k in revenue. Don't know pricing, etc.

It's another dog niche business. I like dogs and so do 100M other Americans.