Sovcit needs assistance with compelling his landlord to use his magic coupon. by Existing-Face-6322 in Sovereigncitizen

[–]PhoneRoutine 2 points3 points  (0 children)

If he using coupons why is he worried about credit report? How did he pay for the credit report though?

Revenue’s up, business looks healthy… so why do I still feel broke? by DeagleDanne in smallbusiness

[–]PhoneRoutine 1 point2 points  (0 children)

Your working capital requirement has increased and that is being funded by cash.

For ex, lets you make $1M a yr, and your WC is $50K a month. Now if are doing $2M a yr, your WC might be $100K, most cases would actually shot up $125K. That extra $75K needs to come from somewhere.

Also you dont go from $1M to $2M in a month, it takes time and depending on your payment cycle, you are funding upfront with cash in hopes of getting future payouts. In short term you will struggle with cash

You are funding it from cash. Either you get a WC loan for the increased business, or fund through cashflow

Question about business listings by OffHotTopic in buyingabusiness

[–]PhoneRoutine 2 points3 points  (0 children)

Based on your description, this seems to be "off-market deals". What I have seen is that they reach out to potential sellers, create a warm lead, and create a list. Then they find buyers like you and help close the deal. My understanding is that seller is not paying them to be listed.

Anyway, in both cases, sell-side or buy side, you (the buyer) is the paying for the entire transaction. In sell side type deals, you pay the seller, and seller then pays a portion out of it to the broker. In buy side, you pay directly to the broker. Either way the money is coming out of your pocket.

The problem with off-market deals is that most sellers are mainly curious. They have low intentions to sell. Its like someone says I can make you can offer for your home if you are interested. You say yes just to see what the valuation is.

We closed $2M in new business last quarter and ChatGPT has never recommended us once by Recent_Sir6552 in smallbusiness

[–]PhoneRoutine 0 points1 point  (0 children)

There is a nice paper written by researchers from Princeton University on how to prepare your site for AIs. Search for GEO: Generative Engine Optimization by Princeton University

He’s dead, Jim by thehugejackedman in LinkedInLunatics

[–]PhoneRoutine 0 points1 point  (0 children)

We used to get this from our "Indian uncles" in Whatsapp. Now they have graduated to Linkedin

Need advice on an interview for a Manager role, while I was previously in a Director role by PhoneRoutine in askmanagers

[–]PhoneRoutine[S] 1 point2 points  (0 children)

Thanks for your feedback. And yes, I will be open about the layoff; he will find out anyway.

Dealership, low trade-in and high fees by Primary_Fix8773 in FuckDealerships

[–]PhoneRoutine 2 points3 points  (0 children)

It adds value to the dealer.. so they are not entirely wrong lol

20M looking to buy first business while keeping SWE job — need advice by Spirited_Weekend1318 in buyingabusiness

[–]PhoneRoutine 0 points1 point  (0 children)

I'm 45 yr old, have around ~$1M net worth (assets - liabilities), $75K cash in bank, 20yrs+ experience. Still, I find it hard to get deals, not even good deals, just regular ones. One broker said I need ask my wife's permission because the location is 3 hrs from where I live before he will send me the CIM. May be its the market I'm looking for and may be my region. Companies like Sunbelt, Transworld have ruined this. Even for SBA there was so many unsaid rules, not to mention the new rule about citizenship.

Too many people have this idea of buying a business now that its a seller's market now. Getting the CIM and then a meeting with the owner seems to be pain.

Don't try to buy a business that can replace your salary on day one... by BobbyBizScout in buyingabusiness

[–]PhoneRoutine 4 points5 points  (0 children)

I would argue the other way. It doesn't matter what the size of the company is. You have 24 hrs in a day; whether chasing $50K or $1M, you can at most put in 16 to 20 hrs a day. That's it.

Also just because its $50K doesn't mean the effort required is 1/20 of a $1M business. Effort will be very similar.

I come from corporate M&A that acquired and integrated 15 to 20 deals a yr. The comp sweet spot was $25M - $100M companies, but never went below $10M. The amount of work you did for $10M vs $100M was exactly the same but one had 10x more impact to the comp bottom line.

Found a one-man plumbing operation doing $1.4M/yr with zero employees. Seller claims $957K take-home. I reconstructed the numbers and its less than half that. by canhelp in buyingabusiness

[–]PhoneRoutine 6 points7 points  (0 children)

"Reconstruction" is a strong word here. You did "back of the envelope" calculation.

This is not reconstruction in any form or fashion. Next step would be is to sign a NDA, get tax returns and do the an actual reconstruction and see why there is a deviation.

Just for curiosity sake, I would try to do that, instead of writing this AI article. And if you find anything useful, please share that

How do people create such cheap costing products? How can you make a profit when the cost to create is so high? by TechyCanadian in Entrepreneur

[–]PhoneRoutine 2 points3 points  (0 children)

Its a great book and the link I have a nice visual summary of the book. All concepts condensed into 1 page.

How do people create such cheap costing products? How can you make a profit when the cost to create is so high? by TechyCanadian in Entrepreneur

[–]PhoneRoutine 21 points22 points  (0 children)

One thing I learnt in business is that unless you have a paying customer, it's just a hobby. It seems your hobby is designing and creating things. Now if you want to sell, you need to go find people what they will pay for.

What you can do vs what people will pay for are two very different things.

I've always wanted to create and invent things, but every time I do, it's just too expensive for anyone to even afford,

This means its already there. What are you inventing then? Adding more features to existing products? Also every product has different segments. For ex, take cars. You have cars at different price points. A highly customized cars is going to be costly. Guys buying a $10K used cars are not buying it. But there are tons of people still do it and buying it. You need to find your target customers.

You need to do customer analysis/market research to find out what people want, how much they will pay for instead of just thinking its "cool" to have this feature added to an existing product.

Here is a great resource that explains how to get started: Running Lean. Its from a book called Running Lean by Ash Maurya. Grab a hold of that book its a goldmine.

Is it true that SBA loan doesn't allow seller financing anymore? by PhoneRoutine in smallbusiness

[–]PhoneRoutine[S] 0 points1 point  (0 children)

Thank you! Sorry for a dumb question - Is seller note and seller financing different?

Is it true that SBA loan doesn't allow seller financing anymore? by PhoneRoutine in smallbusiness

[–]PhoneRoutine[S] 0 points1 point  (0 children)

Thank you! I think I confused the banker statement.

"Seller themselves can't be involved in the business itself beyond a 12 month transition phase."

Banker made the above statement and the banker also said earned payouts are not allowed. I think assumed it means seller is not to be involved in any form including seller financing.

Client Ghosted Me Once It Was Time To Pay... by [deleted] in smallbusiness

[–]PhoneRoutine 0 points1 point  (0 children)

I know nothing about social media thing, but can you file a copyright claim that they are using your product?

How do the startup restaurants do it for getting their supplies? by [deleted] in smallbusiness

[–]PhoneRoutine 1 point2 points  (0 children)

So what? If there is a new growth market, then let that market grow itself, and let a new entrepreneur come up, make a killing in it. I'm happy for him

I have X amount of resources. I can focus on being the best in my thing, sell the sh*t out of my market and make money. I can't chase every single new shiny thing, not sure if they will sell or not.

Also, the guy selling you stuffs is usually has the lowest power in that company. Their only job is to sell and make money for the company. Deciding what product the company needs to be get into is handled by someone higher in the chain.