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7 Steps To Buy A Profitable Revenue Stream Final PDF
7 Steps To Buy A Profitable Revenue Stream Final PDF
To Buying A Profitable
Revenue Stream
After getting an engineering degree at Northeastern University, I
started a career in corporate sales for The Torrington Company. I
quickly advanced and ran the elite sales team in Detroit, having been
responsible for $400 million in sales. It was fun and I learned a lot.
In 1993, while growing my first company, I met Dan Peña and we’ve
worked together ever since.
Dan has created more than $50 billion in wealth since then.
I’ve boiled down the methodology Dan used to create this wealth,
coupled with lessons I’ve learned from my over 20 years in the
business.
I trust these 7 steps
are helpful and if you
need further assistance Let me be blunt. If you are looking for a “get rich quick” scheme, this
please email me. isn’t it. This process is simple, but that doesn’t mean it’s easy. Being
successful is hard work and anyone who tells you differently is simply
To Your Quantum Leap, lying in my experience.
Bruce Whipple
Managing Member So, if you’re not willing to do the work, walk away now. These steps
brucewhipple.com
won’t help you succeed without the work.
PO BOX 127 25 PLEASANT ST.
SOLON, ME 04979-0127 If you are willing to put in the time and effort, though, here are the 7
PHONE: 203-257-6407
DISCLAIMERS Steps to Buying A Profitable Revenue Stream…
Step 1 Your Mind Set
The more I work with entrepreneurs, the more I realize their mindset
can be the #1 thing holding them back.
Frankly, this could be a whole course, but let’s hit the high points.
Most people take for granted what they do well and dismiss it as
something everyone does. Then, they take the area where they feel
they’re most lacking, and compare themselves to people for whom
that area is their strongest asset. As a result, they create a wide self-
image chasm. Often, they were told as kids they wouldn’t be a success
and it became an imprinted self-fulfilling prophecy.
Why?
Because you will have ups and downs in accomplishing something
extraordinary. If you are passionate about getting it done, that passion
will carry you through the setbacks. You’ll think of them merely as
speed bumps.
I often talk with budding entrepreneurs who say, “I don’t care about
the industry. I just want to make money.” That just won’t work. You
need passion AND money if getting wealthy is your goal. Look at
almost any success story and you will see they were run through the
mill before they made it. Their passion kept them from quitting in the
I trust these 7 steps
are helpful and if you face of adversity. There is always another level of wealth, so money
need further assistance alone won’t be enough to motivate you. That’s why you need to create
please email me. your business and career around your passion.
So, if you have worked on steps one and two, you are now ready to
pick an industry in which to make acquisitions.
The way you get a track record is to surround yourself with people
who have one.
You want people who have “been there, done that!” They are given
equity in your venture and under no circumstances do you ask for or
accept money from them. You want their expertise, not their capital.
This isn’t an act of deception. Most of these people will say, “I’m
interested in your project if I can provide value.”
They are right. You must act ethically and behave in a way that never
jeopardizes the reputation of your Board of Directors.
This is critical, but let’s keep this brief. You interview the firms with
members from your Board of Directors (aka, your “Dream Team”).
You explain your mission and that you are interviewing (yes, you are
interviewing, not begging!) You want to find a firm that wants to share
in that mission. You want your law and accounting firms to work on a
success-oriented basis fee (those words are critical). They will get paid
upon successful completion of a deal. Failed acquisition deal fees, if
any, will be rolled into the billing at completion of a successful deal.
Most account firms will tell you that, according to GAAP rules, their
fees can’t be contingent. They can, however, be deferred.
Why?
Because a fragmented business can be consolidated. Think about
what Home Depot did to the corner hardware store or what Staples
did to the local stationary store. Good margins allow some room for
I trust these 7 steps error so mistakes aren’t fatal.
are helpful and if you
need further assistance Then, generate a list of businesses that fit your profile. Write a short
please email me. letter to the owners. You’ll want to introduce yourself and your board,
explain what you are doing and ask if they’ve ever entertained selling
To Your Quantum Leap, their business. Then, suggest you talk. The letter I drafted 25 years ago
Bruce Whipple
still works great.
Managing Member
brucewhipple.com
I recently had a mentee use this letter. Here are his results. As the
PO BOX 127 25 PLEASANT ST. saying goes – these results are not typical. He sent 100 letters, talked
SOLON, ME 04979-0127
PHONE: 203-257-6407 to fifteen owners and met with five who were interested. Those
DISCLAIMERS numbers simply work!
Step 6 Finance the Acquisition
The beauty of Dan’s QLA methodology is that he targeted it toward
people who didn’t have ready cash to fund an acquisition.
Private equity is expensive. They will take most of the deal. Your law
and accounting firms will help you evaluate and structure a proposal.
Conclusion
That’s the overview of how you buy a profitable business. This is the
exact process that I’ve used to help my clients create two billion
dollars in cumulative wealth since 1993. Obviously, each of the steps
involves more depth and detail, but, clearly, it’s a process that works.
I’m fortunate to have been able to teach this process to many
I trust these 7 steps successful business owners like you.
are helpful and if you
need further assistance If you’re interested in flattening the learning curve and saving a bunch
please email me. of time and effort building a business from scratch… If you’d rather just
jump into buying a profitable revenue stream, we might be able to
To Your Quantum Leap,
work together.
Bruce Whipple
Managing Member
brucewhipple.com Send me an email letting me know you’re interested in learning more.
We’ll set up a time for us to speak. You can tell me more about your
PO BOX 127 25 PLEASANT ST.
needs, and you’ll learn a little more about me. In the end, if we both
SOLON, ME 04979-0127
PHONE: 203-257-6407 think it’s a good fit, we can talk about working together. If not, you’ll
DISCLAIMERS still come away from the call with some good tips and direction.