Buying 6-Figure Businesses For Passive Income (With As Little Money As Possible) w/ Shakil Prasla

One of the things Ryan and the FFL team are focusing on in 2017 and beyond is acquiring assets that produce cash flow. And that doesn’t necessarily mean what you think it means. Most people think of real estate or traditional investments. But today’s guest, Shakil Prasla has built a small empire of businesses through buying existing, profitable businesses that he can optimize and automate. Then he moves on to the next one. It’s a fascinating model and this is a fascinating conversation. You’ll learn a lot about an asset building model that very few people seem to be doing.

Shakil Prasla is a business investor, meaning he buys and optimizes existing businesses.

When Shakil Prasla bought his first business it didn’t take long for him to see that he didn’t want to be wrapped up in the details of the business, carrying out the daily operations himself. He wanted to build systems and hire a team that could do it for him. That way he would be relatively free to purchase another business, optimize it for greater cash flow, then move on. On this episode of Freedom Fast Lane, you’ll hear Shakil describe how he got started with this kind of investment model and the kind of amazing results he’s having. It’s got Ryan’s mind churning about his own possibilities, and it will probably do the same for you.

Simple hacks to improve a business you buy can result in 40% increase in profits.

When you buy a business that is already producing a profit there are often relatively simple things you can do to improve its profitability almost immediately. It sounds too good to be true - but it IS true. For example, in one situation, Shakil Prasla simply analyzed the bounce rate of website visitors, pinpointed the reasons potential customers were leaving the website, made a few simple changes, and increased visitor retention and sales by 40%. Forty percent! That’s an incredible gain with a very small amount of work. You can hear more about how Shakil optimizes his newly acquired businesses, on this episode.

Finding good people to run your business is vital for success. Here’s how Shakil does it.

Anyone who runs a business knows that the team you hire to do the work of the business is vitally important. And if you are like Shakil Prasla and want to be out of the daily running of the business, it’s even more important that you find managers who are not only competent but also trustworthy and aligned with your vision for the business. In this conversation, Ryan asks Shakil how he finds the good people to run his businesses and what he does to assess and train them to be successful. It’s a great lesson in onboarding and team building that anyone will benefit from.

How much should you pay for an internet-based business?

When you talk about purchasing profitable businesses as cash-flow assets it’s hard to know exactly what you should pay for the business. After all, it’s worth more than the annual cash-flow, but how much? Since Shakil Prasla has built a business portfolio through business acquisitions Ryan decided it was a great opportunity to find out what an experienced guy like him would say to the question. If you’d like to know what Shakil is usually willing to pay for a profitable business - and in so doing know what you’re might be worth to a buyer - you should listen to this episode of Freedom Fast Lane.

Outline Of This Great Episode

• [0:16] Ryan’s introduction to Shakil - and the business model he uses.
• [2:08] How Shakil got started in business.
• [3:24] The type of businesses that Shakil buys.
• [5:36] The importance of a great team.
• [8:19] Shakil’s role as owners - passing off the work to managers.
• [8:50] The process of finding the good people to run the business.
• [11:10] The complications that can happen in this business model.
• [15:45] Exploring the growth strategies possible in potential businesses.
• [19:00] Maximizing the previous owner’s missed opportunities and adding product line improvements.
• [21:40] 4 key ways to get financing for a business purchase.
• [24:30] How Shakil finds the businesses he purchases.
• [25:57] The first months after buying a business. What does it require to run it well?
• [27:30] Taking breaks between acquisitions? What’s realistic?
• [28:45] The reasonable multiple Shakil looks for in companies he might buy.
• [30:53] The hardest part of the process: the risk of online businesses.
• [35:04] How you can find and support Shakil.

Action Steps From This Episode

FOR GETTING STARTED: Understand that any existing capital can be invested in businesses just as much as property or stocks. Finding the right businesses for sale and exploring their potential is a great way to build a portfolio of business investments.

FOR GREATER SUCCESS: Once you purchase an existing business, ask the previous owner what improvements he/she has considered but hasn’t implemented. Find out why. Often, you can implement some simple improvements and see immediate profits.

Connect With Today’s guest: Shakil Prasla

Website: http://szventures.com/

Shakil(at)SZVentures.com

On Twitter

On LinkedIn

Resources Mentioned On This Episode

• Upwork
• Monster
• HubStaff
• HeatMaps
• BizBuySell