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PART 1 : WHY T HE ONLY WAY TO RICHES IS T O


BUY BUSINESS ES

We’ve all heard the stat – 85 to 95% of all startups fail, yet business schools and
entrepreneurship in general seems to centered around startups. It’s wrong. I won’t get into all
the reasons why startups fail, although there is a lot (there have been many books written on
the subject – but don’t waste your time, the point is that they fail!).

Instead, I want to talk about the reasons why countless Acquisition Entrepreneurs
continue to succeed and become rich.

Don’t believe me, read these names:

Warren Buffett
Charlie Munger
Sam Zell
Donald Trump
Henry Kravis
John D. Rockefeller, Sr.
Andrew Carnegie
Ray Kroc
Richard Branson
Elon Musk (he didn’t found Tesla or Solar City...)
Steve Jobs (started Apple, but purchased Pixar)

All of these guys started making acquisitions of companies with nothing (except “The Donald” of
course, who had money from his dad – nonetheless, he was keen to make business
acquisitions as soon as he possibly could).

There are many, many, many others.

Seriously, this list could go on for 100 pages. Leaving aside Facebook, Amazon, Google, and a
few other tech startups, no company can grow significantly without making acquisitions.

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No entrepreneur can grow his or her net worth by only growing organically (meaning,
working more, starting more companies). The successful entrepreneur learns to do
transactions, to purchase existing companies that have already been built and optimized.
In doing this, a ton of risk is avoided, but more importantly, a TON of time is also saved.
Time is the most important thing we have.

We’ll get to how you can buy your first company later in this blueprint, but first I want to make
sure you know why this is virtually the only possible way to get rich, and certainly the fastest. I
want you to be one of the few on this planet that understands what wealth creation is, not
business creation, but wealth creation. If you want to create a business from scratch, this
blueprint isn’t for you. You’ll learn the business creation principles as you go along by default
anyway. But very few in this world understand the wealth creating principles that are presented
in this document. Even some that read this document won’t understand what I am taking about
– hopefully not you. It could be a genetic thing. At least, that is what Warren Buffett has said
before, some people get it in the first few seconds, and others don’t. Some people understand
that you need cashflow from multiple businesses to get rich, while others don’t and continue
doing what doesn’t work. Remember, the successful entrepreneur doesn’t grow companies from
scratch, or even from 1 to 2 or 3. The successful entrepreneur makes intelligent
acquisitions of already optimized businesses with a team of professionals. Finance
professionals. Law professionals. Accounting professionals. Industry professionals.
Having all these individuals on your team doesn’t make it foolproof, but it is necessary.

I am just going to come straight at you here. If that wasn’t enough, here is a list of why
everyone on that list above got very, very rich before they were 35.

OPT (Other Peoples’ Time)


• All of the entrepreneurs above knew that they needed to use other peoples’ time to
make more money and build big organizations. You are using other peoples’ time the
day you purchase a company, because you’ve just payed a price for all the time that was
put into building the company to what it is today so that you can enjoy consistent
cashflow strong enough to facilitate debt.

“I would rather earn 1% off a 100 people's efforts than 100% of my own efforts.” – John D.
Rockefeller

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OPM (Other Peoples’ Money).


• Something like only 3 – 5% of ALL companies in the US reach more than 1 million in
REVENUE (not earnings). So, let me ask you – would you start a company when you
have a 3 – 5% chance of bringing revenue to 1 million? Here is a better idea. Why not
do what the SBA is there for and purchase one of those companies in the top 3 – 5% of
United States with over 1 million in revenue? You have to understand how hard it is to
be in the top 3 – 5% of entrepreneurs – I will say it again, 3 – 5%!! What does that say
about the entrepreneurs that built those companies? They were damn good
entrepreneurs and it probably took them a long time to please customers enough to get
where they are – THAT IS WHY ALL THE PEOPLE ON THAT LIST ABOVE BUY
COMPANIES VERSUS CREATE THEM.
o Burn this statement into your brain: “I don't look to jump over 7-foot bars: I look
around for 1-foot bars that I can step over.” – Warren Buffett
o If you want to go and jump over 7-foot hurdles, try and get rich starting a
company or getting a 50 – 150k job (which will make the owners rich).
• Back on OPM. The following sentence is not a joke. The SBA sincerely wants to loan
you money right now more than ever to buy these top 3 – 5% of companies that retirees
can no longer handle!!! What do you think will happen to the US economy if all the
companies just close their doors when all these baby boomers retire? If you don’t want
to do it for yourself and get rich, at least do it for the American economy (or whatever
country you live in)! But, the main point here is OPM. Without OPM, you can’t do this.
Luckily, using OPM has never been easier and more incentivized. Look at all the capital
in the world right now. There has never been more!! Banks have a ton. Investment firms
have a ton. Look at how much cash is in the stock market. Don’t forget all the baby
boomer investors who have saved the most out of any generation in history -> THEY
ARE ALL WAITING FOR YOU TO GIVE THEM A REASON TO PUT THEIR CAPITAL
TO USE. THEIR MONEY IS LITERALLY DECAYING IN THE BANK AT 0.03% (less
than the inflation rate) WHEN IT ISN’T BEING USED TO MAKE MORE. If you take
anything from this article, take this: Money (which there has never been more of) in the
bank, in your couch, in your wallet, LOSES its value if it is not put to use. The
LAST thing you need to be worried about in this process is getting the money (whether
that be from investors as equity or a loan from the SBA or a bank). Still not convinced?
Look at interest rates. Why are interest rates so low? Because there is so much cash out

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there with not enough demand for it! After reading this, if you aren’t convinced that OPM
is necessary, then this isn’t for you.

There are tons of companies out there that suffer from bad sales and marketing.
• A lot of business owners today don’t understand sales or marketing anymore, which
creates a huge opportunity for the young acquisition entrepreneur inject new life into the
company.

Baby boomers own more businesses than any other generation has in the history
of the planet (also considering for population increases of that generation versus
others of course) and they are retiring at staggering rates.
• Some estimates say the current figure of 11,000 is jumping to 13,000 to 14,000 in the
next couple of years – these are CRAZY figures). Do you know what this means for the
acquisition entrepreneur? Lots of businesses in supply and with low demand for those
businesses = significant negotiation and price leverage in the hands of the
purchaser. I could dissect this one further, but if you haven’t got it by now, you never
will.

Now, for how you can take advantage of the opportunities in the next 5 – 30 years (only
with massive action).

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