Yeah, yeah. Hi robert heard from Freedom Factory and I want to talk to you about something that's pretty important for an entrepreneur and frankly, I don't think most entrepreneurs consider, which is when they want to grow their company. Do you want to build it or do you want to buy it or growth by acquisition? Now, historically, a lot of entrepreneurs haven't really considered it. And the reason for that is that buying and selling small businesses has been a pretty inefficient asset class. It's, it's hard to find the right one. It's hard to find a real one. It's hard to know what business you're in. You know, not a lot of brokers really disclose a lot of meaningful information and unless you're playing at, you know, a beta of five million or more, you don't necessarily view it that way. But I'm here to tell you that that's not necessarily the case anymore. Money is made on the buy and you wanna you wanna find something at a fair evaluation Warren Buffett said, I think best. He said, I'd rather have a great business at a good price than a good business at a great price. And I think what he means by that is an exceptional business with a sustainable competitive advantage will always be worth more than an average business.
And again, when you're looking at it, you're trying to think, okay, how do I find a great business at a fair price? So that Freedom factory we really specialize in selling great businesses. And so if you can find a great business at a good price. It can make a ton of sense. There's two other points of leverage that you might want to consider one is if you have a complementary products set or a complimentary customer set and what I mean by that, let's say your cell phones and you're looking at buying a the headset company. You know, you're buying headsets that would plug right into your phones, you know, your existing customers would be interested in. And if you could get a 10 20% take rate on that. You might be able to pay for your business in less than a year. If you bought it at 34 or five times earnings. You know, the other thing, which I talk about more in other videos is what I like to call your stupid human trick. Or really, that's the one thing that you do better than anyone else. And everyone's heard of the 80 20 principle, right? 20% of your work delivers 80% of your results. Well, when you get to an expert level at something, in my experience, it's really turned into 955.
So 5% of my work delivers 95% of my of my results. Now that can really multiply your efficiency and efficacy in your business. And what I mean by that is if I could do that 5%, 20 times, You know, I could deliver 20 times of business results that I could otherwise. So let's land the plane and talk about exactly what I'm saying. So let's say for example, for me, my background is in sales and direct response marketing. So if I can find an engineering company with a superior quality product, that's extraordinary. That has a sales problem. I can probably dramatically shift the line by focusing on fixing the sales and marketing problem, which comes really naturally to me and allows me to make huge differences uh in your company. So for example, we've had clients that have bought companies at four times earnings and they've paid for itself in less than nine months because you use that stupid human trick to really dramatically shift the line on your business going back to build versus buy.
I know it's been an inefficient market class, but you don't always have to build organically. Money is made on the by look for great, great businesses. See if you can find businesses that are complementary to yours. You know, maybe it's a luggage company and you have a and you have a travel site, See if you can plug it into your existing customers set or you can plug your products into their customers set. And finally, you know, as entrepreneurs, we all do a lot of great work on, on figuring out our stupid human trick and there are a lot of tools for that. Uh Colby Myers Briggs, you know, figuring out your profile and and what that looks like. A lot of people like the instagram model. But whatever you can do to sharpen and hone that edge of figuring out what you're best at and making sure that you can leverage that in a business can provide dramatic results and make buying a business really makes sense. If you have any questions on a great business for you or under stupid human trick, why don't you give us a call? It? Freedom Factory? Thank you so much for washing, please like and subscribe and we'll see you soon.