David C. Barnett

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164 appearances 1 recordings 1 series first heard Nov 2024 last heard Nov 2024

David C. Barnett’s voice in public audio — every appearance, attributed to the second.

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Proven Podcast · DON'T PURCHASE A Business, Unless… - David C. Barnett · 6 Nov 2024 podcast
Aber bedeutet das, dass es viel mehr aktive neue Unternehmen gibt, die Leute beteiligen?
Or are there businesses, for example, where someone had a great job, they lost their job in 2020, they had trouble getting a new job, and now maybe they're creating some kind of side hustle, or they've been forced to create, because they can't find a new corporate employer, maybe they put out a shingle as a consultant or something like that, and their accountant told them that they should organize by registering an LLC, for example.
And so I related that to my own experience, because I live in a town that once upon a time... was quite a railway town. And so we had a big locomotive shops here that employed thousands of people. And back in 1989, 1990, it was shut down. Und später hatte ich einen meiner ersten Jobs aus der Universität von den Yellow Pages.
Und ich habe mit einigen der älteren Leute gesprochen, die Yellow Page Sales Reps waren, an dieser Zeit. Ich war ein Teenager an dieser Zeit, aber diese Leute waren im Geschäft. Und der Thema der großen Shop-Klöschung kam auf. Und ich sagte, das muss ein schwieriges Zeitpunkt für dich gewesen sein. Und sie sagten, nein, es war ein Boom-Zeit für uns.
Weil all diese Leute, die ihre Jobs im Shop verloren haben, viele von ihnen haben Severances, viele von ihnen haben frühere Retirement-Package bekommen. Und viele von ihnen waren zu jung, um idyllisch zu sein. Und sie haben alle Unternehmen eröffnet.
Und so für einen Yellow-Page-Sales-Rep, du weißt, mit 15 Pipefitters, die von den Geschäften geliefert werden und 14 von ihnen entscheiden, Plumbing-Konzerne zu öffnen, zum Beispiel, weil es die gleiche Fähigkeit ist. Es war großartig, weil all diese Leute einen Ad in den Yellow-Pages kaufen wollten.
Und ich dachte, wow, also kannst du eine lokale, in diesem Fall war es eine lokalisierte Rezession in unserer Stadt. But it led to a boom in business startups. And so this experience and this learning from these other guys really helped me understand that you can't just look at surface level numbers. You have to kind of dig below and figure out what's going on.
We know that a huge number of small businesses that get started never really make a lot of money. They're just marginal. People will resort to self-employment if they have no options. Someone who may prefer to be employed because of the benefits of consistent income and health benefits and all that kind of stuff, if they just can't find a job, Well, they've got to eat, right?
And especially if they're like a six-figure person who's used to earning a decent salary, unemployment benefits aren't going to cut it. And eventually your savings are going to run low. Eventually maybe you're going to start maxing out your credit cards and stuff. So you realize at some point you've got to take action to get some income flowing.
And for a lot of people, the sort of last resort of where can I go to get some money is to say, you know what, I'm going to have to create something on my own. I'm going to have to do this. So that's why I say that startup statistics may not always be a sign of a booming economy.
Sure. So when you start a business, you never ever know for sure if you're really going to meet that startup point or sorry, the breakeven point, right? You start up, you've got some costs associated with starting up, then you're going to get some overhead costs, whether you make a sale or not, you got to pay those things.
Und mit Technologie und SaaS-Solutions und all this kind of thing, it's never been easier to start a business. If you just want to think about a basic thing like a retail store, Once upon a time, you had to spend $1,000 on some kind of point of sale system. Now you just need to get a tablet and sign up for Square, right?
And you've got a point of sale system, the cash registered solution, the whole thing's there just for a subscription. So things are cheaper than they ever have been, but you start to get these overheads in place. You may have to make an investment in something like inventory, if you're thinking about a retail store again.
And so you've got this money going out, then you've got to make sales and on each customer you serve, you're going to make some money. You hopefully eventually get to the point where you're serving enough customers, the money that you make on them in that month is going to cover your bills.
I still don't really believe that's a break-even point because I say, now you've got to earn back the money you lost before you were at that point to really get ahead and be making some money. And we just don't know when these points are.
Wenn du ein Unternehmen kaufst, das bereits funktionierend ist, hast du Kunden, du hast Verkauf, du hast Beziehungen da, Leute, die schon wissen, dass du da bist, was du verkaufst. Der Verkäufer kann dich trainieren, wie du das Unternehmen umsetzen kannst, richtig? Also hast du ein bisschen Coaching und Beleidigungen, wie du es funktionierst. Und es gibt viele Vorteile da.
Es nimmt die Kosten der Kunden und Verkaufsrisiken weg. The sweet spot, in my opinion, to your point about deals with hair on them, is to find a business that you know has problems, that you feel you've got a background and knowledge that you can fix those problems, but the business still makes money.
Because you're going to buy that and on day two you're still going to make money and you've got basically an unlimited runway now to work on those problems. Because you're making money from day two.
Das Problem, das die Leute, wenn sie ein Unternehmen kaufen, haben, ist, dass wenn man das Unternehmen nicht unter den richtigen Terms und Bedingungen kauft, also wenn man einen zu hohen Preis zahlt oder wenn man es kauft, auch wenn es ein guter Preis ist, aber man die falschen Terme bekommt, das bedeutet, dass man vielleicht Geld unter einer zu kurzen Anamortisierung auf den Wettbewerb oder so etwas zahlen muss.
You can just be trading one kind of risk for another. So you trade the customer risk for what we call finance risk. Where now, yeah, you got the customers, but guess what? If you lose 5% of them, you can't make your loan payment. That's just as precarious a position as not having customers when you do a startup.
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