Clay breaks down the 10 best-practice steps for merging or acquiring another business and why you should not buy or acquire another business until you have strong management in place.
Question: “Paul Hood, the CPA has been on the show discussing how he grows his business through mergers and acquisitions. However, according to a recent study, 70-90% of M&A (mergers and acquisitions) fails to boost shareholder value. How has he made it successful? What is his process for identifying a suitable target? What is his due diligence?”
Step 1 – Make sure your current business has a strong leadership team and will not fall apart when you are not there.
Step 2 – Look for businesses that you can vertically integrate with (products and services that you refer your current customers to?)
Step 3 – Make a Dream 100 list of businesses to buy.
Step 4 – Call them all until they say no or yes to having a confidential appointment.
Step 5 – Meet with the potential seller?
Step 6 – Determine if their business if bankable?
Step 7 – Determine if their team would work well with yours.
Step 8 – See if the seller will be willing to owner-finance.
Step 9 – Determine a plan for what the former owner will now be doing after the sell.
Step 10 – Paint the walls.
Tilman Fertitta – https://www.forbes.com/profile/tilman-fertitta/#489264b9271b
Fun Fact: 75 % of men cheat on their spouses – https://www.washingtonpost.com/opinions/five-myths-about-cheating/2012/02/08/gIQANGdaBR_story.html?utm_term=.b250fef0cdc3
Fun Fact: 9 out of 10 start-ups fail – https://www.forbes.com/sites/neilpatel/2015/01/16/90-of-startups-will-fail-heres-what-you-need-to-know-about-the-10/#17b035f56679
Fun Fact: 75 % of employees steal from the workplace – https://www.cbsnews.com/news/employee-theft-are-you-blind-to-it/
Recently I discovered the echo sound effect. And since then my life has improved by 10% to buy or not to buy. That is the question. Mergers and acquisitions, one Oh one on today’s show, we break down the tin best practice steps for merging or acquiring another business and why you should not buy or acquire another business until you have strong management in place. Yes, you should not merge over words with another business or acquire another business and your current business can be profitable and successful without you being there, Lord and go over everything you’ve got to have strong leaders in place. Now on today’s show, we talk about mergers and acquisitions.
yes, yes, yes. And yes. Now threatened nation. I wanna get that out there. I want to get this out there real quick here. Tip it. Actually, it’s, it’s two men. We’ve got, you know, there’s two men we have, we have eight kids created by two different women that that is true. However, it is normally ecstasy whenZ is next to me, but he is not here today. And so we have the good dr Breck with us today. We have dr Breck with us. We’ve got uh, Jason Beasley with us and you have it and you’re stuck with, with, with me. And so dr Breck, how many kids do you have? Oh my gosh, did I, did I mute you too? That’s, that’s amazing. What kind of passive aggressive posts do we have here? How many kids do you have? I have three. So you have three kids?
I do. Okay. So we still have eight kids. There were Coke created by two different women. Hey, ahead and Jason, you have any kids? I don’t. I have dogs. Okay, so we have three men. Eight kids. And how many dogs? Three. Three dogs. Okay, so it’s three men, uh, three dogs and eight kids and eight kids. That’s, that’s, that’s the facts. Now on today’s show, Jason, what are we talking about today? We were talking about mergers and acquisitions, trying to determine a suitable target to buy. So let’s talk about that merging or acquiring, uh, dr Breck. Have you ever gone out there and acquired a business or merged with another business? I did. Well, tell us the story. Yeah. So, uh, the current clinic that I have was, uh, at one point, kind of a partnership, uh, kind of an unusual partnership, but, uh, we were working side by side with two separate practices.
The, in many ways from the outside looked like one and two years ago, uh, as of yesterday, I took over the other side of that practice. Uh, so Kini healthcare center was dr Chad Keeney yeah. And years ago, uh, to the day, uh, I took over and it is now all CASP on chiropractic. No, I’m not gonna ask you for the specific, uh, amount that you paid when you acquired it, but did you guys agree on a price or? Yes, but the way that our, uh, merger acquisition was structured was very unusual. Um, the, the attorneys that put that together told us they would never ever do another deal that way because it was so unusual. Could you tell us a little bit about that deal? Yes. It was kind of structured a lot, like an indentured servant hood. Got it. So certainly, yes, dr Kini, he was a, at a point in his career where he no longer wanted to be in practice, um, had kind of gotten burned out and uh, wanting to go back to school and so he wanted to go back to school.
So he was actually, he went through medical school. How old? How old was he at this time? When was a, in his, uh, mid, early forties, I want to say 43 44. So he’s only a little bit older than you? Yeah, he’s, he’s a few years, maybe 10 years older than you. Um, I think seven or eight. Seven or eight years old. Okay. I’ll get back to you yet. Um, but uh, yeah, he had decided he wanted to go back to school. And so the way that our, uh, merger as it is, would be structured was to allow him the opportunity to get through school and still have an income for his family. He has three kids as well and wife to support. And so, you know, stepping out of your career and going to school is not very easily done back to school. And he did.
Um, and you know, with medical school it’s a full time gig. You’re really not able to work while you’re going through it very easily at all. Yeah. Especially with the family. And so that’s why I had to go to medical school. I’ll tell you what, I’m on the verge of going. And so, uh, so yeah, so he continued to receive all the profits from the practice while I saw all of his patients and still saw all my patients. Got it. And, uh, then I got a small little, a piece of the action at the, the back end and what was left over, um, the that we had agreed to. Cause previously I’d just been paying him a flat fee for rent and use of the staff. So then, um, you guys ultimately did you, did you guys drop a contract and say this is how much we’re gonna pay and how much you’re going to pay him or or, right.
But the way that it was structured, so basically, um, we kind of figured out what would it cost him if I just saw his patients without any of the, the changeover of the ownership. Got it. So without that piece, if I was just like an associate for him and um, once we figured out what that number would be, then we subtracted a payment amount out of that monthly payment he would have made to me. If that makes sense. Yeah. Yeah. That’s if you’re out there today, I want you to think about this. If you have a business today, all right, if you have a business today, and let’s say that you are doing $1 million of gross revenue or more, if you have a business today and you’re doing more than $1 million a year of gross revenue, this show has the power to change your life.
But you have to have an open mind. You’ve got to think outside of the box here. Jason, can you read a question that we received from a thriver that’s related to today’s topic? Yeah, so a thriver asks Paul Hood, the CPA has been on the show discussing how he grows his business through mergers and acquisitions. However, according to a recent study, 70 to 90% of all murders in the acute and [inaudible]. I can’t say that mergers and acquisitions fail to boost shareholder value. How was it or how has he made it successful? What was his process to identify a suitable target and what is his due diligence? Okay. Okay. This Justin, I’m going to attack the thriver. I’m just going to attack the part of the question real quick. It says 70% to 90% of mergers and acquisitions fail. Okay, so that’s that. That is a stat that is true, but let’s also think about this.
I would just say in general, in the game of life, 75% of all people fail at everything. So it just, and that’s a rough, that’s a rough stat. You might say, well, you’re a negative guy. No, just stay. Think about this. I have stats and Jason, you can look up the stats. I’m just kinda take quick notes and then after the show we can put, we can add the stats to the show notes there. One 75% of men surveyed their, there’s an article you can find in the Washington post indicate they do not like their spouses and they’ve cheated on their spouse. So it’s like 71% of men have cheated. I think it’s 75% of men don’t like their spouse. According to psychology today in Washington post, well, that’s every positive. But then you look at starting a business, nine out of 10 startups fail.
Okay, so nine and a 10 startups fail. Seven and a 10 marriages fail. I mean, to me, your marriage is kind of a failure. If you don’t like your spouse and you cheat on them, but you’re still Marriott, I think that’s a loss. 75% of employees steal from the workplace. 75% and eight out of 10 people lie on their resumes according to inc magazine. So eight out of 10 people fail it. Everything, everything. So feeling very good about this. Yeah. So don’t, don’t let that stat shock you. I would say if you’re not at, what’s the technical word, a douche, um, you’ll, you’ll do really well in the game of life. But if you are, the technical word is a douche, you will definitely fail often. So don’t let that stat scale, uh, scare you. Cause I know a lot of people who are a douche who merged or acquired another business and they failed not because of mergers and acquisitions fail, but because they fail at everything.
So it’s not like that. They just happen to fail. It’s not like that. These statistics of failure in mergers and acquisitions are so high. It should scare you off. Just most people fail. Okay, let’s walk. Let’s, what’s, what’s, what’s walk you out. Walk the diligent doers through the steps needed to successfully merge and acquire another business. So Jason, what is step number one is like cue up [inaudible] this just in this, just in step one is make sure your current business has a strong leadership team and will not fall apart when you are not there. Yeah. So what I would do, I know it sounds crazy, but I would go ahead. If you’re thinking about merging and acquiring a business, um, I would make sure that you ask yourself, what was the last time I went on vacation and when I went, did it fall apart?
Does everyone currently report to me or a manager? I would contemplate these ideas and I would actually do a stress test. So I would go on a one week vacation, ah, go to satellite beach and visit our good friends over there and Papa gallows. Oh yeah, you can go there. I’m sure they’d appreciate the additional business. They’re wonderful clients, great people. But go to satellite beach for a week and on the beach. Contemplate merging and acquiring a business. Do all of the research needed. Do all your phone calls, talk to your banker, but do it all while you’re not in town. And dr Breck, why do you think that? I would suggest that as the first step to actually leave your business for a week to stress test it while you’re thinking about acquiring another business. Well because acquiring another business is going to require a lot of you.
And if you can’t do that for four or five, six, seven, eight days a while on vacation, then you surely can’t do that day in and day out. Moving forward. I have found that a lot of people think their businesses very solid. Then they go on vacation and then they, and they discover, Oh no, my business is terrible. So I’ll give you an example of a, of a guy that I know, uh, me, I went on vacation and a two. You know yourself. That’s awesome. I’m really in tune with myself. So 2004 I think, or three. Jason, I took my wife on a cruise. I told you about the seven day, uh, hell gig cruise. I don’t think so. So we go on a great cruise. Seven day cruise. Went to Belize, Honduras. Oh wow. Ah, Brazil. Great cruise. When I’m princess cruise, it was cruise line.
It was awesome. Love the cruise. The problem was I put a guy in charge while I was gone and when before I left I said, Hey, make sure that X, Y,Z , one, two, three, all this happens. It’s all typed up, but very specific list of things to do. Yeah. And we were doing probably 40 weddings per weekend at that time. [inaudible] so we go, we drive from Tulsa to Houston. We get on the boat in the port of Houston. We leave, come back. I got home one day before they thought I would get home because, um, I told him, you know, the, I get by planning for the worst case scenario, but we got back on time. I drove home through the nights. I’d get home early just to check on the business. So the morning that I got home, uh, I got home like on a Monday and I think they thought I was going to be home on a Tuesday.
So Monday morning, the typical flow was, you know, the phones, everyone gets to work around eight 30 phones start ringing at nine, we start handling customer service, booking, weddings, et cetera. So I’m there nine o’clock. Nobody’s there. [inaudible] nine 30, no buddy. Tenneco not 10 o’clock, I believe. I don’t remember the specific times. I just remember the people who were supposed to be wearing shirts and ties and were supposed to be working at nine showed up like at 10 were in shorts and you know, tee shirts and, and joking around and looking like they’d had a lot of beers the night before or something. I noticed our trash cans were filled with beer cans and uh, check the voicemails and I noticed that the guys had actually missed a wedding. Mm. Like they just didn’t show up at someone’s wedding. And I noticed that her voicemail, cause you see the red light flashing.
I’m checking the voicemails and I almost couldn’t handle it. Just complaint after complaint after complaint. And they had no problem. They skipped the morning meeting. They weren’t dressed up. Uh, I talked to the guy who was in charge of the manager and he said, because we had such a rough weekend because such and such called in last minute, we couldn’t cover it because, and I had never let that happen for me. So I was like around the world, are you letting this happen for you? I mean, um, anyway, they said because such and such because such and such couldn’t cover the wedding. It was such a de motivator. I wanted to give the guys off today just as a way to kind of, you know, give them off half the day as a way just to kind of recruit, recoup. Cause it was a rough weekend man.
And I’m going, are you kidding me? I said, did you guys work while I was gone? He goes, yeah, yeah, the whole time. Just Friday I did let the guys go, Oh get off early. We all went out for a picnic. I’m like, you took the team out on a picnic. He goes, what we did is we can put up the tables downstairs in the, in the front of the house. They would put the tables out and we ordered it in some food. We all ate out sizes. Such a great day. Woo. I’m going. So you gave the team off half of Friday and Monday half. I’m like, yeah, I don’t remember all the details. I just remember that the guy who called in and said he couldn’t do the wedding called in on a Friday, but they didn’t answer the phones so they didn’t know and then on Saturday they missed the, it was just terrible and yet couldn’t see that they had created this problem.
But here I thought my business was in a great spot where I could actually open up another location in Dallas. Right. So around this time I was actually opening up another location in Dallas without having the proper leadership team on board and it got really bad really quick and from the time we got back from the cruise, it probably took me a week to deal with the legal issues, the refunds, the apologizing, the, the firing, the training, the just, it was an abomination. It was just a complete abomination. It was like there was a complete infestation of abominations. It was like, it was just awful. Once I dealt with that is probably a week and a half later. Meanwhile our Dallas location was floundering sales, right. Were having problems with that and it was because I didn’t have strong leadership in place previous to growing. So that is the best advice.
I could give you his book as short trip, go somewhere and do all of your negotiations and conversations while on your trip that week. Dr Brett, have you gotten to a place now where if you’re gone for a couple of days where you feel you know, confident or w w when have you, when currently do you feel more confident than ever before? Or how long can you be gone now? I can be gone for a couple of days right now it’s just a couple. Just a couple days. Yeah. And so what happens is, uh, essentially we, for the chiropractic side, cause we do massage as well. Chiropractically um, no one else can do it for you. I’ll, yeah, I’ll shut down the chiropractic for a couple of days. Wow. Um, rescheduled patients around that time that I’m gone. I did bring in a doctor to cover the clinic last year for a vacation. Yeah. And that went horribly. What Ben, so yeah.
Yeah. So kinda like what you’re saying. Um, I had to come home and clean up messes and deal with problems that had created, um, not because of the team so much, but that doctor, um, I get it disappointed me. Um, but then, uh, real quick, if you’re out there, I don’t mean to interrupt you. If you’re out there that you and I and dr Breck, all of us, if you have a business that’s doing over a million dollars of gross revenue, there’s a false confidence. We all have that, Oh, I’ll just bring in another doctor or I’ll at my ma ma all out of this manager manage the DJ company are all, we have this false confidence. We believe that it’s going to work well when we step away for a week or a couple of days. And unfortunately when you’re gone for a couple days, you’re gonna discover the house of cards, right? Yeah. I mean, yeah, absolutely. So right now I’m actually, uh, adverts just recently started advertising and looking for another doctor to come in part time, part time. That’s actually going to be a part of our team. And that way they know how we do things, our systems, our programs, the way that we practice. And then hopefully here in the very near future, I will be able to get out of the office for a couple of more days at a time. Now if you’re out there today, listening today and you are in the Tulsa Oklahoma area,
Holy cow, this could be your opportunity, dr [email protected] is looking to hire another chiropractor. So if you’re out there listening, we’re going to air this show on a Monday right here in Tulsa. So if you are in the Tulsa area listening to the sounds of my voice and you know what chiropractor, text him right now and say, Hey, my good friend, Dr. Brock is looking to hire somebody. Do you want to join the dream team? It’s a great, it’s a great job. It’s a great opportunity. Do you mind sharing some of the details about the job opportunity? So somebody out there listening can, uh, you know, maybe decide, I know, I know this show is hot with the chiropractor. Chiropractors love this show. That’s all right. I’ll look up. All the chiropractors are listening right now saying what’s cracking, what’s the deal? Tell me about the deal, doctor brick.
So, um, right now really with a kind of a part time, two potentially full time position, uh, being available for the right individual who can, can handle that load. Um, we are, we’re looking to hire, uh, essentially immediately and immediately and grow. Your practice is growing and so we need to expand. Our new patients are scheduled out into July right now, which is a crazy thing for chiropractic. Um, several chiropractors that I recently had the opportunity to talk with are struggling to get new patients at all. Oh yeah. And so we’re having some great problems, but they’re all growth problems. And so, uh, I can say we need to go one 90th of a percent of your growth is attributed to being on the show. But man, when those people come in from the shell, it’s beautiful. I ran his patients from the show. Yeah.
Yeah. They come in, they tell us and they’re great patients. I ran into, I ran into, I can’t remember where I ran into some business owner that told me he heard about you on our radio show. So hopefully you’re getting people over there. But again, if you’re out there, you’re looking for a job to check out dr breck.com. Are you hiring for any, any other positions right now or we’re going to have to have some extra support staff to support this new doctor. So yeah, somebody who has the right attitude, wants to work and uh, is willing to learn that don’t have to have any other prior experience. We’ll teach them the skills they need. Jason? Yes sir. Uh, do you remember last Friday? Do you remember? Last Friday? Do you remember our Friday meeting for elephant in the room on Friday? Yes. He’s a great member.
Here we are on a Sunday, Friday. Well, I thought you were, I thought you were like trying to trick me because my house was flooded the Friday before. While I am trying to trick con but we’re going talking to vague, vague. Uh, we cannot get ourselves in trouble. Gotcha. Okay. But at our meeting on Friday, we have, we break up the stylists into three groups. Sure. For training. Why we break them up into three. Why, why do we break up our styles? Cause our stylists are great people. But why would other organizations have to break up their stylists into three groups? Not why we have to break them up into three groups. But why would other haircut businesses when they have a required mandatory weekly training, why would they have to break up their stylists into three groups and not keep them on one group?
So other hairstylists, what has to be broken up? Because you want to kind of weed out that mob mentality that happens when you have a bunch of hyper emotional people in the same area of the mob mentality. Yup. No. Explain what the mob mentality is because somebody out there listening needs to get this, get this advice, needs these, understand this, we have. So the best way that I could ever describe mom mentality is have you ever been to like a sporting event and everything is fine. And then there’s one person who’s super heated than some guy in the back’s just like, that’s right. Get him. And then everybody else frantically doesn’t know what to do. So they just do what everybody else is doing and it just gets worse and worse and worse. And so not at our meeting on Friday, but someone else’s meeting.
Yeah. What does it look for? The meat has happened at another hair businesses Friday meetings cause we, when it doesn’t happen for us, but for other companies if we’re not careful, right? So for other companies, if they’re not careful, what would happen is you would have a group that branches off and still has that lingering mob mentality. Let’s say we have two groups doing the training that they’re supposed to and then one just decides they want to get into like negative conversation. And then it begins to stew because you have so many different people that are just dealing in the emotional and not the logical. This unfortunately is a universal truth. So elephant, the room, we have very positive people and if we see any negativity going on, the strong leadership steps in and puts it out. Right. But what if we didn’t have strong leadership like you to stomp out negativity?
Not at our business, but other businesses. What would happen? Even if we just had one meeting, just one meeting, just one where all of them were gathered around together and there wasn’t strong leadership to stamp out negativity. Well, I’ve worked at those other businesses, so I’ve seen it firsthand where if you’re at a conference table or if you’re doing like a team huddle and you have the focal point of leadership, AK management or the assistant management, and they’re not to sound in their disciplinary action. Yes. And they start on the right track and then somebody has a negative comment. Then somebody says, Oh, you know what? You’re right. And then it starts to do like the whisper conversation in the back. Here it go. Just starts to build and build and build. And at one point you have the manager going, Hey guys, Hey, Hey, Hey guys, can you, can you pay attention over here?
And then they’re like, no. And it gets worse and worse and worse. So I have moves that I use, but we have strong leadership in place. Jason’s on our team, daisies on our team. Uh, John’s on our team had a strong leaders and we stomped that out. But if there wasn’t people like you and John and Daisy, we didn’t have a, a team. I think we’d go about 11 people deep right now that are very strong leaders that will stomp out negativity. But if we didn’t have them in place, let me tell you. So we have a cruise. We booked on July 4th, I think it is. It’s like the second, third, fourth, fifth, sixth. I will go on that cruise with great confidence knowing that the world will not end because we have strong leadership in place. Right? Let me tell you, mr. listener. If you’re thinking about acquiring another business and you don’t stress test your business before doing it, you are gonna be screwed. You’re gonna find yourself in a very bad situation.
serious, it’s going to be bad.
tell you, Jason, if you don’t have strong leadership in place, how bad could it get? Not at our hair shops, but at other hair shops. If there’s not a strong leader that does hit the manager calls in sick and now there’s no chief to lead that. The the, the natives, what would happen? Well, you would either get people who want to start doing things their own way, which could be bad for your business or much like with your previous experience that you would get into the situation where people just don’t do anything at all. And then you have a stack of burning fires and you come back and you’re like, dear Lord, how did I let this happen? Now, step number two. So step number one is make sure that your current business has a strong leadership team and will not fail when you are not there.
Step two, what is what Jason? Look for businesses that you can vertically integrate. What does that mean? It’s a great question. Vertically integrated. Let’s talk about this. So, uh, dr Breck, a lot of people come into your chiropractic center, dr breck.com. By the way, if you’re listening out there, seriously, the first exam, the first x-ray, the first adjustment I believe is a little bit lower than a dollar. I believe it’s free. It is free. Okay, so free [inaudible] credible. I like the 99 makes it just seem a little bit more affordable. It’s free. 99. So, um, a lot of people come in though and they go, gosh, you know, I want a recommendation for a massage. And you’re going, wow, you sound kind of emotional there, tiger. I’ve been looking for a good massage place. And so you as a doctor over time realized people were looking for a massage, true, a therapeutic massage.
And so you decided to bring it in house? We did. That’s vertical integration. It’s where your Brit, you’re bringing into your business the things that you typically referred out, right? So another example would be if you change oil right now you have a business where you change oil, oil change, a Jiffy lube kind of a thing, and people say, man, my brakes are screwed up. Do you, do you guys do that? You say, Nope. But we do recommend this particular automotive repair shop boom. And you keep doing that for a decade. Over time you may realize, wow, if we did it in house we could probably make more money. Yup, makes sense. So elephant in the room, uh, Jason, are you familiar with a shoe gate? Shoe gate? Um, I am not. Oh my gosh, this is terrible. Terrible. Um, we had a lot of guys that came in by a nice shoes, like really nice shoes.
And it occurred to me that everybody who goes to the elephant in the room is a classic guy, many of which have my shoes true. They’re doctors, lawyers to get these nice, nice shoes. I mean, I’ve seen some pretty nice shoes come through. What kind of brands? They, where they as bro. It’s Brooks brothers is that kind of shoe? I know nothing about fashion. I know nothing about shoes. Don’t other make suits you? What kind of shoes they would wear? I would get some kind of an Italian brand, but I don’t know. I don’t know the brands of shoes, but they’re nice shoes. You guys are coming in with these great shoes. I talked to one guy and I’m like, ah sir. Do you know how much are those shoes? Some nice shoes. Oh, I got these for two Colt cons and these colons rolling, there’s only like $300.
And I’m like, Oh, only $300 a mile. So I thought the guys who come into elephant in the room, I’ll have nice shoes. We should vertically integrate shoes. So I actually found a gentleman who buys the shoes for the big stores, like a, um, mm Joseph, a banks, uh, you know this, the nicer shoe places. And so I bought like $40,000 of shoes, like really nice shoes. And the idea was you come in, get your hair cut and we’ll have shoes on display. You get some shoes too, right? And, uh, God, the guys loved it. He has her buying these shoes. And everyone’s going, Hey, do you have my size in this kind of shoe? Do you have my size in this kind of shoe? And so I’m kind of accommodating the demand. And at the end of the month I realized our stylists are helping people find their shoes.
They’re not cutting hair, cutting their hair, and we’re not being profitable with either business. Right. Because we’re spending all of our time trying to, some guy loves these shoes, but he wants it to nine I’m special ordering this shoe. He has a wider foot, he wants a wider shoe, would never run in a shoe shine guy. So I went through, we sold all the shoes, but it couldn’t happen fast enough. That’s hilarious. So I got to the end of the shoes and I think the last week they were 90% because I was just trying to get rid of them. They’re pissed me off so much. I was like, here you can get the shoes 95% some of the early elephant in the room members will remember this, but there was like 95% off. Did you offer shoe shining as well? Yes. Okay, so this is connecting so many dots.
Just a brief story. I was in terrible 91st location. I got talks up with these two really nice pairs of shoes and I’m like, do you have an appointment set? He goes, no, I’m here for the shoe shining. I’m like, excuse me? He goes, elephant in the room, you guys, you guys shine shoes? I’m like, no, I don’t believe you do. He’s like, no. I’m pretty sure if somebody told me and he like tried to find it on Google, I apologize, but I think you got wrong automation. But I guess he goes right. I am sorry if you’re out there, I’m so sorry that I gave you that gift that was actually a plague for me and took it away. So guys get their hair cut and we’d say, Hey, we can shine your shoes while you’re here. And the guys loved it. But you know what the problem was, Jason, what was the problem?
I had to teach women who were hairstylists to shine shoes. Right? And everybody hated it. Nobody liked it. It’s a certain skill. It’s a certain craft. Right? We didn’t have enough people that wanted to shoe shine to make it worth training. Everybody. We had one person and in the shop who was like a shoe shine guru now and they couldn’t cut anybody’s hair because they were shining shoes. That’s incredible. Certain guys, their shoes smelled like a wet basement after all. It was just gross. You dealt with athlete’s foot. Weird smells. Acton. Ah. Say anyway. I get, if you’re out there, you want to think about a business you could vertically, vertically integrate with. It wouldn’t destroy your current business. Yeah. You don’t wanna take away from your strengths. Let me tell you a business right now that I don’t think I’m going to get involved in, but that came across as an opportunity just this week.
It’s a print shop. Have you heard about the print shop? Are you saying prints or print? It could be Prince. A red raspberry. Booming. Hi. Ah, no, uh, purple. Who raid? Oh, pool Ray. I’d say invest in that. I know, but this is, it’s a print shop in Tulsa that’s failing. Okay. And it’s like I think $50,000 I can move in all the stuff here and print our own business cards and our own print, everything. The problem with that, that’s it. We’d have to learn how to do it. Yeah, and I don’t think it’s worth any of them. The margins are so small. And what if you screw up a business owner’s business cards? I mean that’s a, and then you got to eat that and eat Austin. I don’t think I’m going to do it, but it’s an opportunity to vertically integrate and that’s what we’re talking about here.
Alright, so step three, Jason. Step three. What is step three? Step number three is huge. It’s to make a dream. 100 list of businesses to buy. Make it. What a dream. 100 list. Can you repeat it one more time? For some reason, having a hard time complimenting a co, comprehending the English language this morning. Step number three, make a dream. 100 list of businesses to buy. What is the dream 100 list? A dream 100 list is a list of 100 plus or minus, however many you can come up with businesses that you would either kill or die to work with or for, or it could be a, um, a list of a hundred some things that you want to happen, right? So it’s a list of a hundred. So you’d make a list of a hundred potential, let’s say chiropractic businesses that you’d want to buy or merge with or, or, or team up.
And why? Jason, would you want to have a list of a hundred? Because this system was developed by Chet Holmes, the author of the ultimate sales machine who used to work with Charlie monger. That’s Warren Buffett’s partner. Chet Holmes. Great book. By the way, the ultimate sales machine. Why would you want to have a list of a hundred? Well, it’s the same thing that we do. Like with our sales calls, when we asked like, Hey, you know, you guys made 200 calls today and you got one appointment booked and we celebrate it. Like, why? Well because we hit, we hit it 200 people to get this one. So you’re basically investing more in your potential chances of hearing it. Yes. If you have a wider network of people, or let’s say you have a hundred people and you contact all of them and they say, absolutely. Now you have a a hundred plus people that are going to help you with your new brand.
Uh, think about this for a second. If you make a list of a hundred, what is the statistical probability? Dr. Brock, if you wanted to buy a chiropractic practice in Tulsa, you went to, you wanted to merge with somebody, you want to acquire them. If you made a list of the hundred chiropractors in Tulsa, and by the way, is there a hundred and Tulsa? Yes, there’s a about a 215 220 I think. And how many are really competitively running it like a business? You think? Maybe 10 20 yes. Let’s say, I think that’s probably accurate. But if you made a list of a hundred chiropractors in Tulsa, you wanted to merge with [inaudible] and you had a member of your team cold call them to set up a meeting with you. How many of them do you think would actually meet with you of the top, you know? Oh, those 200 and Tulsa.
Oh goodness. Um, yeah, I wouldn’t think too many of them. Shit hole. I think it’d be pretty low. Chet Holmes talks about the dream a hundred. He says you have a 3% chance that somebody will want to do what you want them to do. Sure, yeah. If you’re just randomly asking people [inaudible] 3% so let me give you an example. Um, if you’re there listening today, I want you to Google search Tillman, T I. L Tillman, T I. L M, a. N for Tito Tilman Fertitta and Jason. We’ll put it on the show notes. Tilman, Fertitta, T I. L M, a, N for Tita, F. E. R. T. I. T. T. a. You might say, who is that? Well, that is a man who owns the Houston rockets and that is the newest guest. We just booked to be on the thrive time show. Very. I just got Tillman to agree. You might say, well, why would you want a basketball owner on the show?
Well, I don’t know. I mean, one is, is, uh, he’s, he owns Landry’s. Uh, it’s the, you know, big restaurant chain. He owns, uh, the, uh, crab shack. Uh, he owns the Houston rockets. He’s worth $4 billion. And I thought, well, you know, what, know something about business. Even though we have certain standards on the show, you know, we only want to have super successful people in the show. Perhaps we can allow him to be on this shit. No, I made a list of a hundred people that are big in a big push I’m going to have in the next year. So I’m trying to get owners of pro sports teams on the show. And his team is, I mean, they, they’re legitimate, amazing things. Uh, and they’re, they’re on the rise and Houston’s one of the biggest cities in America, I don’t think realize that. But Houston is a very large city.
Um, so I figure if we can get him on the, on the show, perhaps we could get Bob craft for the Patriots or we could get any other owners. And by the way, if you get an owner of a sports team on the show, right? NBA players want to be rappers, rappers want to be NBA players, NFL players want to be rappers, rappers want to be NFL players. Its athletes want to be musicians. Vice versa. There’s a, there’s a certain, and once you stop it, everybody wants to own a protein. That’s like the Holy grail. If you’re a dude out there, you gotta admit you probably want to own a protein that’s like th that’s the Holy grail. So anybody out there who owns a business, who’s a multimillionaire, we kind of secretly look up to pro sports owners cause we’re like, aren’t they printing money as a sports owner?
I mean those guys are, I mean let’s, let’s be typing the values that have been the value of the Houston rockets. Just right now. I’m right now the Houston rockets are worth, ah, come on. Well, now they’re worth 1.6 5 billion. Wow. 1.6 5 billion. So again, I mean that’s a, that’s a hot deal. But again, I don’t get 100% of the guests that I invite to say yes, right? We just got Ross Golan on this show. Um, one of the top songwriters of the past five years. He writes for Justin Bieber, Selena, he’s worked with Lincoln park. We just had him on the show. We’ve had John Maxwell on the show. But how many people have we not have H have not had on the show? Hundreds. I mean, it’s unbelievable. Thousands out. Let me, let me show this example and I know the listeners. I know you can’t.
I’m a see what I’m typing. So it’ll probably be less exciting for you. But if you, if you’re listening out there and you type in, let’s do a search. Everybody for Foundry media, do a search for Foundry media. We searched for that. Once you find Foundry media, why don’t you to look up here on the books they represent? Okay. This is Foundry media. F O U N D R Y. Foundry media.com. We just booked the founder of Foundry media on the show. He thought we’ll be on the show in a couple of days and I’m not sure when we released these shows. So I’m not really sure what that means for you as a listener. So just stay tuned and listen to every show cause you don’t want to miss it. But they produced, uh, Sean Payton, the head coach of the, uh, new Orleans saints. His book, the subtle art of not giving an F.
that’s them Chris Kyle’s book that was made into a movie, the legend of the sniper. You know, they got him, Chris Farley’s book, the Chris Farley show. They booked that. That’s him, that’s the book and represent, um, they represent, um, you are a bad boop. They represent that book you can find at target today. They represent Elon Musk’s book right there. Daymond John, the head of FUBU, the inside story of Tom Brady’s fight for redemption. These guys, if you go to target, you’re going to find their books. And recently I tricked him and they’ve agreed to represent me. So anyway, I bet. How many times have I been rejected? Four years. True for years. Literally for years, these guys have ever had rejected me for years. Why? Because I wasn’t in a, my swag deliciousness wasn’t big enough yet. Right? I didn’t have enough swag, maliciousness. Technically speaking, I did not have enough swag, maliciousness, but through the process of making a dream 100 I have invited these people over and over and over and over and over and over be on the show, and I’ve had some people reach back to me and say, no.
And I say some people at the peak of our dream, 100 and Jason, what was the peak number of guests that Jonathan Kelly and I invited to be on the show every week at the peak? Do you think the peak number of rejections per week then we can emotionally tolerate at the peak? Weren’t you guys inviting like a thousand a week? Yeah. The thing is we released, we can joke around here, but we work nine days a week here. We do nothing. We put on nine shows a week, right? So I said, we’re going to invite 900 guests a week, and that was the peak and the peak. We got about four people to say yes at 900 so four to 900 that’s like, ah. Well even if you got one at a 100 that’d be at 1% right? Right. So four out of 900 you do the math. That’s not good.
But you’ve got to make a list of the hundred chiropractic businesses. You want to buy the a hundred businesses you want to acquire. You gotta make a list of a hundred of them. You got to do it right. Jason, sell me on the dream. Why do I have to make a list of a hundred not just the list of two. You want to have as many as possible because people are likely going to say no. Like mr Chet says, 3% of the people are going to do what you want them to do. And that’s about as small as you know, four out of 900 now step four, step four. Here we go. You want to call them until they say no or yes you want to call them until they say no or yes. Jason, how many calls do you estimate that would take, cause you have clients to do the dream 100 system.
How many calls do you think we have to make to somebody to say, Hey, Hey, I’d like to talk to dr such and such. What about um, I’m interested in maybe partnering with it with him. Right. And by the way, don’t tell the secretary you’re interested in buying his business. No. Cause that’s going to get him upset. Dude. Co yeah. Oh by the way, possible wants to buy or are we going out of business? Don’t freak out the staff. Just call boop. Hey, thank you for calling dr such and such as office. Hey doctor, such and such. This is doctor was happening. I was calling because I would like to talk to you about partnering with you in the future. If you make that many calls. Jason, why? Why can’t you just call once and leave a voicemail? Why do you have to just call until they say yes or no?
I was literally about to say, you cannot think the move of calling, leaving a voicemail and then sending an email one time is going to work because one, nobody checks an email like they’re supposed to. Nobody listens to voicemails anymore. And then that one shot at reaching out to them is not going to increase your likelihood of them saying yes, if you’re tenacious enough and you keep blowing them up, you’re either going to annoy them until they say, go the hell away. Or they’re gonna say, wow, this person really, really wants my time. I should probably give them a call back. But you have to keep calling dr Breck when people fill out the [email protected] Yes. D R B R E C k.com. They fill out the form to schedule the first appointment? Yes. How many times do you typically have to call or text somebody?
How many times does your team have to call or text somebody before they usually get them on the phone? Uh, it’s usually a two or three times. Here we go. Since they’ve actually solicited us. I think our uh, rate of return is a little better than if we’re cold calling them. But if they’ve already solicited you, you still have to call them two or three times. Yeah. I’ll tell you this. Thrive nation. I love you guys. I love you guys. I love you guys. But you need to help me here. Thrive nation. I want you to help me. Help me. Let me somebody I need to help. Help me. I’m in a very dark time in my life right now because a couple of you have not you listening, but your friend, you go to thrive time, show.com and you want to book tickets to the business conference.
Oh yes. Not you, but your friend. They want a book tickets. Did they do? Yes, they do. And what they do is they’ll fill out that sacred sanctimonious phone and I did that form with their phone and I know they’re busy. I know they are. You just gotta tell them this right now. We’re up to having to call the average person over 10 times before we reached them. Real. Yes. And y’all tell you why. Because you are business owners, you’re listening out there, you, you, if you’re listening to this show, you either hate me or you own a business where you want to own a business. But if you don’t own a business or want to own a business, this is not the show for you. So if you are out there and you don’t have that entrepreneurial drive, you’re gonna hate this show. But let me tell you what, if you own a business and you fill out that form during the day, you have a job.
So you’ve got so many optometrists, doctors, dentists, lawyers, people coming in from Canada, Australia, all over the world wanting to get to the business conferences. You fill out that form and because you’re working during the day, you don’t answer your personal cell phone. And then at night, because you’ve been working all day, you turn that phone off, don’t return the call. So there’s no window to reach you. A lot of times this is, this is how the phone go up. The phone call goes, it’ll go boop, boop, ring, ring, ring, ring. Hello. This is dr Chad. Hey Dr. Chan. This is a clay with the thrive time show clay. I gotta let you go. This isn’t a good time. Bye. And so he answered the phone. He say it’s not a good time and then you go. And so I have to tell them, tell our reps that is a term of endearment for an entrepreneur.
In fact, they answered the phone. That’s good. You got some good rapport goals. Yeah. Did you find out a time to call them back? They said no. They answered the phone and said, now’s not a good time. It’s a weird move. But it’s a move. It’s a business move. It’s an entrepreneurial move. Cause you got to call these people until they say yes or no to having a confidential appointment. Now step five, Jason, what is step number five? Meet with the potential seller. Why will you have to one, let them know what you’re wanting to do, but then also to have like terms of the actual merger. So let’s, so what you do is you meet, you meet with a potential seller and you go over a, B, and C. all right. Jason, read off a, B, and C, the sub moves of moving number five.
So the first move of moving number five, after you meet, after you meet with them, do you want to determine their goals? Why would, when you’re meeting somebody, dr brick, why would you want to ask them their goals when you’re thinking about buying their business? Well, you’ve got to know what they want out of. I mean, where are they headed? Where’s their head space? Are they wanting to, uh, to close up shop? Are they wanting to retire soon or are they just getting started? Are they crashing and burning? I mean, I’ve met a lot of business owners who skipped that step though. They’re meeting with a guy. They me with a guy, they don’t know. You’re saying, here’s my dreams, doctor. Here are my goals and I want to buy your practice and take it to Alderon and the other. And the other guy’s going, I don’t know what Alderon is.
I don’t even know who you are. We have no rapport here. I’m not interested. So you can kill. The deal is by simply not asking them their goals. I don’t know how you make an offer if you don’t know what it is they want. There it is. Now, Jason, what is the sub point B? Determine why and when they would be willing to sell the business. Now here’s what’s crazy. I know of, at least in my cranium two dozen examples where the owner said this number, Jason, is this number, well below this, this number will blow your mind. Okay? So that means one of my clients met with somebody about buying their business and the number I’m going to tell you will blow your mind.
One particular doctor that I know pretty well, he met with another doctor and he said, doctor, I’m interested in buying your business. I’d like to know what are your goals? And the doctor says to him, um, I have a terminal illness and I’ve got about a year left and I’m just gonna give it to you if you’ll take over my lease and all the payments. IO [inaudible] I’ve got a life insurance policy for my wife and I’ve only got a year left and I have to see all the patients every day. And I have a building. It’s worth about a million. I owe about 500,000 on it. You can take my building and my business because it’s a contract. We need to have some sort of money exchanged. So if you’ll just give me like a dollar seriously, you can take my 1.11 point 2 billion our business or write my building and my business, all of it, and I’ll just leave tomorrow.
Wow. And I know that that has happened. That scenario, the terminal illness has happened once, right? I know of a pizza business that a guy called boop, boop, Hey, I’m interest in acquiring your business. They meet, what are your goals? The guy says, I hate this business, right? I hate this. I hate this business. I regret doing it. It’s destroyed my life. I work all the time. Um, I have savings. So if you’ll just take over it tomorrow, I’ll go back to corporate America. [inaudible] literally I will be, you can just have it. You’re helping me. I know. I know of a haircut business in town that did that. Um, the location we’re in now at, uh, 16 in Boston. What did that business used to be? It was a salon. Really? How much did I buy it for you do you think? Probably dirt cheap.
Zero. Whew. It was already a Sloan impressive. So that is a move. It’s a move. That is a move. There are people out there just begging to get down to the boat. Do that move. But you won’t know unless you ask them what their goals are. Right. I know years, years ago, behind a church near the farm shopping center, there was a, a beautiful house had like the Amazon grown in the front yard. All the neighbors had nice lawns and this was like the Amazonian yard. I mean, there was like spider monkeys out there. I mean, it was a, it was a nice neighborhood and that’s my area, uh, by, by 51st and Sheridan. Yup, exactly. And there was all these nice houses, but one house had the Amazon [inaudible]. It looked like there was the crazy as it looks like someone had not maintained any aspect of the house in probably five years.
Right. It’s located behind the church. So Jason, what do you think? Well, why did that house look so beautiful to me? The house that hadn’t been maintained in five years, cause you realize that somebody wouldn’t want to deal with this or they’d rather just sell it so somebody else could take care of it. Oh. So I went to the pastor, went to the secretary, pastor, I can remember the whole situation, but I moved my way through the labyrinth of things. I don’t, I’m not sure. I think Braxton did it or I did it. Somebody did it. We weren’t worked our way through. And we talked to the pastor and he says, you guys can just have it for what you know, for what we have in on it. What do you mean? They bought that house as a parsonage and the church was having some financial problems and I think we bought it for $40,000 steel and it was worth like 200 right?
Maybe one 70 I think so we put about 40,000 in to fixing it. Knocked out walls, opened it up, made it look beautiful. Vaulted the ceilings, sold the house for I think like one, I don’t remember over over a hundred like maybe one 31 40 steel of a deal. It’s still super fast. Right. And we bought it for like 40 or 50 put in 40 or 50 of work. So you know making like 30 grand [inaudible] again if you’re out there you have not because you asked not, you’ve got to dig through another man’s trash. It may be your treasure. You’ve got to do it right. And if you’re out there and you can scale, I encourage you to do this move. Jason. I have called other DJ companies when I was growing DJ connection and have bought an all of their gear for like 10 grand. Yup. That was worth a hundred grand last year cause a lot of guys think they want to be a DJ until they have to realize I’ve got to do sales and marketing and accounting and so you’ve got to make a list of the dream 100 businesses you want to buy. Okay. Now sub point C under step five, Jason, is what you want to ask them to see their real numbers and do not sign a nondisclosure agreements. [inaudible]
what you want me to repeat the whole thing back? You want to see this? You want to see their real numbers and then you want to avoid a nondisclosure agreements. Man, are you saying I’m going to sit there real numbers mountain. Oh, you want to come? We can’t just talk about visions man and like visions and merging and the teamwork and the vision. Dr Breck, why do you have to eventually look at the guy’s numbers? The other company’s numbers. I mean you gotta to know what you’re actually acquiring. I mean, you know, people will lie about all kinds of things and you’ve already started the show with people, you know, cheating on their spouses and lying on their resume. I mean, you know, I’ve got this practice and I see 2 million people a year to 2 million people every day. Every day I seen 2 million payments guys.
It’s awesome. But what happens is, is people always lie about their numbers. True. And let me tell ya, uh, some of the craziest lies I’ve seen most recently in the last, like, I don’t know, three, four years of doing conferences. We had one pastor came as [inaudible] blew my mind because pastors, if you’re, if you’re, if you’re going to college at a, at a university and it’s, you’re in, you’re a freshman, you typically ask somebody, you know, so, so what’s your major? Right? Whenever you’re, whenever you’re hitting on a girl that’s got hot questions at your pickup line, Hey baby, what’s, what’s your major? What are you studying? I want to study you. And then if you’re a pastor, the question is, Hey pastor, if if there’s a bunch of pastors getting together, they talk about how many, how many of you, how many people are you running?
How many are you running? How many of you running, how many of you run? You know, if you’re working out a lot of guys here, how much can you bench? I can beat you at time. How much can you bench? I can be July to just pump it up. How much can you bench pastor say though? How much are you running? [inaudible] says pastors at our, at our business conferences is Clowney ish individual. And he says, I said, well how many people won’t attend your church cause we’re good enough pastors to know. That’s the question you asked. The right writing. And he says, all, we’re running thousands. Thousands. Wow. How many thousands? A couple thousand. So you were in 2000 wow. Two thousand two thousand some Google searching buildings about the size of this bump room here. You know, and I’m like, wow, 2000 people in a small room. And anyway, long story short, I’m like, how do you, I’m just asking the guy, and I have other pastors I work with now and I started asking some other pastors, I said, pastors, pastor, client, pastor, friend, what’s going to pastor tells me they’re running 2000 people at their church.
How do they come up with that number? Right? And one guy said, well, a lot of times they’ll take the number, the total number of people who attended church, the total attendance for the month, right? So if the same 500 people attended four times, they’ll add that up and say that the number, all right. Or they’ll add up their wind day, Wednesdays and Sundays, or they’ll add up the total number of people who’ve attended the church that year, so of 2000 different people at some point attended the church this year. They add that up. And I guess what I was asking the question, I was saying how many people attend every Sunday on any given Sunday? But again, people like to give the biggest number, right? Very few people like to go. We have four people. Very few people want to do that. So I see a lot of people with their businesses.
What they’ll do is they’ll run all of their expenses for their personal life through the business and they’ll tell you, Oh man, we make a profit of a hundred grand a year. And you’d say, well, your tax return shows you’re making a profit of 10,000 a year, right? And they go, huh? And he said, well, yeah, I mean, so if I buy the business from you, how much actual profit is there? And they say, well, the profit, we make hundreds of thousands of dollars a month or a year on profit, but I only report a profit of 10,000 a unit for taxes. You know what I mean? Right, right. Wink link. Well, you go, you go to a banker and you tell a Baker, Hey, why don’t I want to buy this business for $300,000 because typically you can buy a business for the profit times two and a half. Okay. So the profit times two and a half, whatever the annual profit is times two and a half plus assets.
So if you’re, you’re wanting to buy a chiropractic practice from a guy who says he makes $100,000 a year of profit, the bank would say, well, it’s worth 250,000 plus assets. We, we’ll lend you the up to 350,000 yeah. And you go, yeah, yeah, absolutely. Let’s do it. And they say, we need to see his balance sheet, right? So you, you’re showing the balance sheet and the banker says, this guy only profits 10,000 a month or 10,000 a year, doesn’t he? And they said, it’s the maker says, I’ll lend you $35,000 right? And so you go back to the guy and you say, guy, I want to buy your practice for $35,000 and the guy says, no, no, no, it’s worth 350,000 times that. Right? And you go, but don’t on paper. You see? So you’ve got to look at the actual numbers and there’s a little sub, I said, it asked to see the real numbers and don’t what Jason, don’t what?
What does it say? Don’t, don’t sign a nondisclosure agreement. Why? That is a great question. Dr brick, why do you think I would not sign a nondisclosure agreement to look at your numbers? I was actually, uh, yeah, when I, when I heard Jason [inaudible] then I was kinda curious what is the, uh, the logic behind that because then people will say, I stole your idea. Okay. Let me just give you an example. There’s a guy, we’ll call him a, I’m trying to think of an affectionate professional term to insult somebody. It would be like a, an idiot. Okay. Who, uh, came to a business workshop, you know, years ago and, uh, the guy now, just so we’re clear, this particular guy was not based in Tulsa. Um, was never a client. Just, it’s, this is a real scenario. Um, if you go down Dallas though, there’s a company called door real estate.
Have you guys heard about door real estate? Yes. Only because you told me. Well, I’m gonna pull up door door real estate. [inaudible] door real estate is a great company and these guys do flat rate, um, real estate fees. Okay? So they don’t like Sam Adams. Realistic. Yeah, we’re just a lot cheaper. That’s all it is. I mean, yeah. So this is what it has. This is great agents, full service, lower fees. It’s dor.com unrivaled home listing for just $5,000 paid at closing. So no matter how big the house is, door.com will sell your house for a flat fee of $5,000 $5,000. Now my company, Sam Adams, charges $1,000 but it’s the same service. It’s just, we literally will list your house. You still have a real estate agent, but instead of paying 6% so on a $300,000 house, instead of paying $18,000 of fees it door, it’s just $5,000 which if your house is more than a hundred thousand dollar house, it’s a great deal.
It’s a good deal. So, but if it’s under at door, it’s not necessarily a great deal. But at Sam Adams, it’s still a great deal. So let me just give you listeners a tip, a tip. This guy came from California because California knows how to party. So he comes out to the business conferences, he comes out and he says, I’ve got this idea. I’m going to be doing a flat rate real estate. And I said, okay, that’s great. Well said. Uh, have you sold any houses? No, but here’s the deal. I’ve got this hot Jason. I got this hot deal. If it’s a flat rate, he’s like, I need a website. I need all these things. I said, great. I said, have ever sold any houses? No, no, no. How are you gonna market it? How are you gonna market? Long story short, we didn’t work with the guy, but this guy was real estate agent who had the idea for flat rate real estate years ago.
He said, and I’m like, why are you aware there’s other companies that do this? And he’s like, no way. They stole my idea. Are you kidding me? They Sue stoma. They, they stole my idea, right? And this guy discovers that door.com exists and I’m not kidding you. He says he’s going to Sue him for stealing his idea. And I’m like, well let me give you a list of other people to Sue. There’s a lady in Tulsa right now who does flat rate real estate too. And I’m also thinking about doing flat rate. He goes, are you stealing my idea? So I’m not kidding. I’m not kidding. Uh, we have people in this building that can vouch for the story. And uh, he says, I’m going gonna I’m going to Sue you. He attended my business conference and he told me about his idea for flat rate real estate.
And I was already doing flat rate real estate and he wanted to Sue me. So again, you don’t want to sign a nondisclosure cause the moment dr Breck you go back to your practice and start doing what you normally do, I could accuse you of stealing my chiropractic ideas. So if you’re thinking about acquiring a restaurant, don’t sign a nondisclosure before meeting them, right? Don’t do it. Don’t do it. Cause they’re gonna say you stole the idea for bacon and eggs. We were the only ones in the world that provided Biskin Sue. They can still my biscuit idea. You can’t just don’t sign a nondisclosure or you will get sued by a business owner that’s struggling. And by the way, a lot of people that want to be purchased are struggling. Sure. So they see you as a money grab. It’s actually a methodical move. I’ve seen people do, do not sign a nondisclosure before meeting with somebody about buying their company.
And then on the initial visit, do not do it. Now on the idea the, now isn’t there a statistic about like when you have an idea that three or four other people right now are having the same idea and it’s the one who takes the action to bring it to market. Like, you know, if you, if you seem to have something that’s truly revolutionary, isn’t there a statistic about you’re not likely the only one having that idea. And so if you don’t take action, you’ve missed your window. Well, what I have found, and I don’t have a stat for it, but I can give you anecdotal, uh, support to this. A lot of people thought of an online book store at the same time. Jeff Bezos did write a lot. I know a lot of people who’ve thought about this driving range concept where it’s kind of like driving range and having a good time, right?
You know, hitting golf balls while there’s music and digital screens and all that. A lot of people had that idea, but to my knowledge, there are two companies that actually did it. What? There’s flying T and T and top golf and top golf. Yeah. I think top golf is the one killing it. I think saying top golf, we have fine tea here, so there’s flying tee and top golf, but it just quit running around thinking the ideas matter. It’s the execution of the ideas, right? You got to get off that idea, that ideas matter. You got to stay execution. It’s the execution of the idea that matters. Maybe that helps somebody out there. It’s not um, you know, success Thomas Edison wrote is 1% inspiration, 99% perspiration, right? You just got to take massive action of Jason. What is the next step? The next step, step six is determine if their business is bankable.
No bankable. That means will a bank lends you money to buy them? Right? Again, if a guy’s claiming to make 100,000 a year but only shows he makes 10 grand a year on his tax returns, that’s not bankable. Right? True. All right. So Jason, what is sub point a underneath step six sub point a. Does it operate at sustainable and bankable profit margin? So does it operate at a sustainable, what does it mean to be sustainable? Dr Rick, if I were to buy a practice from another chiropractor and I took him out of the practice, what do you think would probably fall apart? If I took out the main product that we offer? The main, the main service, if it was, if it was called dr Smith’s chiropractic and I bought the chiropractic business from Dr. Smith, therefore Dr. Smith no longer works there. How could that impact to the business?
You think it can impact it greatly? Um, when I was looking to purchase a, this other practice, I did look into, um, you know, statistics about chiropractic practices and buying and medical practices in general. You can anticipate that there is a minimum of a 25% uh, loss. People will leave, people will leave because they know that there’s some had been looking to leave. So this is their window of opportunity may give you one try that. Yep. They may just see this as a chance to Hey, I need to get off the fence and go elsewhere anyway. They don’t like your personality. They really like Dr. Smith and it doesn’t matter who you are, they’re just not going to be happy with anybody that is going to happen. A minimum of 25% is what I came to to understand and I 100% agree with that statistic. I’ve seen it happen.
Jason would a sub point B question B sub point B is what would happen if the owner left? That’s the question we just talked about. Yep. Sub point C what’s that? What’s happening? Are customers loyal to the owner or the brand? Yeah. What are you thinking? What would JFF, could you say that again one more time? Yeah. Are the customers loyal to the owner or the brand itself? What? What does that question mean? Jay’s, so that question means if you were to buy the business, are they, are, are the customers more than likely to exit because they prefer the face of the business? Or if you were to maybe change one little tweak, would that affect the branding that they’re so passionate about? Let’s go to elephant in the room. Well, let’s go. Let’s go to elephant in the room. Our men’s grooming establishment. Jason, why do I rotate stylists from store to store? Why do I rotate when clients call? Great people like dr Breck when they call, why do I try to accommodate their requests of what stylists they want when possible, but why do they typically get a new stylist? Maybe every third or fourth visit. Why? Why, why? Well, one, everybody there can do the exact same thing. Okay. Oh, he’s going to be in good hands, but to you avoid that weird campiness but also that addiction that people get to like a specific person that provides the service [inaudible]
first, you know, they say see abroad to get at Boody active leg down or smack on back home.
Clay, what does that cost? What would that have to do with what we’re talking about? Nothing. I just like hitting that sense a, I’d just like to hit that button and I just like to say,
you know, they say see abroad, they get at Boody yak leg down or smack. There’s something awesome about that button. Just every time, every time I hit the button, I get a feeling of satisfaction. They say to see abroad, to get her leg down or smack on the back.
Now thrive nation. I want you to learn how to do this. Okay? I want you to everyone. Everyone say it with me now on the count of three, here we go. One, two, three.
You know they say see abroad to get that booty act down back home. Yeah,
it’s going to take some more repetition before we get it. Okay, so here we go.
You know they say see abroad and get at Boody action come. Yeah.
The great thing does, it’s so important that we get 500,000 people who can learn this obscure airplane reference from the 1980s slapstick comedy. It is so important. No, but seriously, when you go out there and you run a men’s grooming business or a personal training business where a chiropractic center, you’ve got to rotate the patients or the clients to different people so people can be loyal to the brand and not to the people because if people are loyal to that specific person, you are going to find yourself hurting for certain when they leave and if Jason will they leave? Absolutely. Oof. Just had a, a person on the team had been with us I think four or five years, whatever left on great terms, but out of the blue left boom, did it impact me? No. Do I care? Not really. I care about the person, but I’m not sitting there in my garage crying, lamenting, look at old photos like that.
We’re going to lose all her clients. But I used to be right with the DJ business. I love the people. I love our customers. Get loyal to the DJs. Right. And you knew what would happen when that DJ would start his own company, doctor brick. Those customers went with that DJ every freaking time and only played that game for like seven years in a row before I figured out I hated losing it. Right? Yeah. If you’re out there and be on a way to win it, if you’re out there and you’re going, gosh, I keep running this game plan. I don’t know what it is. Every, every Sunday, my players suit up. We get ready, we have the helmets on, we got our jerseys on there and I just, every play I say, we’re going to run it down the middle. Every play. Alright, break huddle up guys, play number two, second down second and 12 here’s we’re gonna do, we’re gonna run it right down the middle because you knew what? You know you guys guys, guys look, focus. Are you? Are you focusing there?
You know they say see your body get a booty. Yeah,
so I’m going to say guys, listen, click. I know you’re a hot quarterback. I know you think you’re the hot stuff, but we’ve got to do something different. Last week we ran the ball down the middle, every play and we never got a first down. And I’m like, it’s the principal. We are calling. Are you? Are you quitting on me? You freaking jerks. Listen, it’s second and 12th you know we’re going to do run the ball right down the middle. All right, here we go. Coach. And then, yeah. Hi. Retina mill tech. Aw, alright. Third and 17 we lost five yards in that play where we were not successful. Should we ever throw the ball? No. No. Why? Well, you know what they say, see it ball to get that booty accurate clique. That’s not a strategy, nor does it make any sense. We got to do something else, guys.
You got to have the fire of desire that’s required. It’s third and 17 you know when it’s third and 17 and you find yourself against a wall and the first quarter of a game backed in on your one yard line. You know what we have to do? You know, do you know what people have been doing for thousands of years? What do you do? You know what the Incas would’ve done in this kind of situation? The Aiken Indians, the Mayans, the early settlers of the Mesopotamia river Valley. Do you know what they would say during this particular moment? A lot of pressure. You’ve got to rise a buffet. You’ve got a harness in the good energy. Walk out the bat, harness energy block, feel clear. That doesn’t make any sense guys. It’s third down. It’s 1,801 yard line and we’re gonna run that ball down their throats. So the team has all their players stack.
They don’t even have defensive backs in, they’ve got their backup linemen now who are behind the lineman. The backup linemen are behind the line and they don’t have any defensive backs, no quarterbacks. They put six linebackers, they got 1111 lineman fixed line. There’s six linebackers they’ve got and they’re just ready to go and you’ll hike the ball, boom, safety and you lose two points. You punt the ball and you do it again and again and again and again and you lose over and over and over. And eventually the owners of the Cleveland, Cleveland Browns would realize we got a horrible coach. And if you’re out there today and you’re not getting people loyal to your brand and you’re letting people get loyal to your people, eventually you have to understand that doesn’t work. Nope, you got to rotate, baby. Jason wants the next step. If we’re going to merge to acquire business.
So if you’re gonna emerge in and acquire a business, you have to determine if that businesses team is gonna work well with your step seven. You have to determine what if the team of the business that you are acquiring is going to work well with your team. So years ago I bought a party rental company and they had like 10 employees and on day two the guys had the commercial driver’s licenses. The only three guys we had the drivers who drove the party rentals from a to B, right. Told me they were all quitting at the same time because they didn’t like the new culture. Hm, true story. Yeah, you got it today. Bet was horrible day. So I end up having to pay people I hated more than they were worth while I was secretly talking about crazy. That is, I had to secretly try to hire people to replace them.
Like I’d have like Craigslist ads that had a phone number. They couldn’t figure out who it was. Right. Because they were, they weren’t going to ever control me. They were holding hostage. Right. So before you buy a business, you got to figure out, is this new team going to play well with me? Right. And usually, I know this is kind of a shocker, but usually the team that you just bought will not want to work with you. They’re there. They’re not going to want to work with you and you know why they won’t want to work with you. You know what they say? See it all to get that booty smack them yet. I don’t know why. Just every single time people hate the new owner. Yup. Jason, you’ve seen that whenever we, whenever we bring in a new manager at elephant in the room, yeah.
Um, our people always adapt to new to new managers. Right? But what do other hair salons typically do to the new manager? They do that like side like chin over the shoulder look like [inaudible]. I’m not too sure about this person. Like they immediately start looking for the bad instead of just saying, Oh, this is just a new addition to the team. Dr Breck, have you ever seen this where you try to change something? Not now, but back in the day with older employees, not now, none of the people today, but back in the day when you were growing dr breck.com, did you ever find that when you change something, it made new? I made the current people upset in changing anything at all. Absolutely. Yeah. People hate change. Changing, changing the hours. All people hate change. Changing the scrubs, the hours. Oh yeah, the uniform policies and uniforms.
We’ve changed pricing. People hate it. Hours. We’ve policies. I mean, you know any little change people, people resist change. People hate it. Yeah. People hate it so much that in Tulsa we were flooding and the city hopped on the TV, the city GT buying them. Our mayor did a great job with this, by the way. He was on Twitter saying, Hey, via Twitter, you know it’s time to evacuate. It’s on like the news. If you’re watching the news right now, when you can understand the words coming out of my mouth, it is time to evacuate. If you live in this part of Tulsa. Yup. People go, I ain’t move and I’ll tell you what. I’m going to be in here and I’ll offload my way down. I’ll just float. Ravi here, frighten him. I’ll live in room. I ain’t moving. And so then they’re like sending out emails.
The city’s got texts. Did you get the text messages? The flood alert texts. They got texts going on. Jason did. Did you see the text messages? I did not. Oh, I got all of the messages that did get a message. Yeah, and they, they texts pretty much everybody in Tulsa then they have no where near a flood plain and they, I’m up on pretty high ground and they have billboards by the way. They tell you how fast you’re driving, that kind of thing. Those things said immediately evacuated if you live here. Yep. Ah, there was helicopters flying over the soon to be flooded areas they could not have done anything more to educate people that you need to leave. Right. And still certain people would not evacuated. What? Why? Why have you, did you know for sure you’re going to flood? Why wouldn’t certain people evacuate there?
Documented just like hanging out on my roof. I don’t know. I’ll tell you. I’ll tell you what I hate change and I ain’t gonna I ain’t gonna have the waters can come up and it ain’t going down. I’m going to stay here. And then you see them on the news floating around, sitting on the top of their house waiting for a boat to pick them up. Talking about how they were mad. They didn’t get up. Warning, one more warning. Do you want, we have a massive dam called the Keystone dam that releases a certain amount of cubic feet per second of water. Right. And we know what’s going to flood, right? Because we’re flooding ourselves. The dam is going to flood. The dam is gonna. The dam can only hold so much water in Keystone Lake. It’s just going to pour over the top if we don’t start letting some water out.
So they’re releasing a certain amount of water, like 270 cubic feet per second or whatever it is, keep it that. And they know if it’s two 70 or more, this is definitely going to flood. We know we’ve done the math. This just in the Corps of engineers actually does their job. We know, we know that the casino at two 80 it’s gonna flood. We know it’s gonna flood and it is. Some people are going, well, I don’t know if it’s going to flood. That’s why they had to force people to evacuate. And even then, if you go online, you read some of the comments, people were like, what’d you pull leave? They forced me out of the hotel. Why would they force me? I wanted to continue gambling with snakes and critters and Lake water all by me. Why would they? People just hate the change. People hate people really do hate to change.
Jason, what’s the next step? The next step. The next step is see if the seller will be willing to owner finance. Step eight. What does that mean, Jason? Um, that is a great question. I personally do not know dr Breck. In your mind, what does that step eight mean? So when an owner finances the purchase, it’s a, they’re carrying the note. So you’re not necessarily gonna go to the bank and borrow money against it, but the profits of the business are going to pay for the acquisition itself. So instead of paying the bank, let’s say you got a small business loan today to buy a $100,000 business. I’m just gonna do a mortgage calculator just for a second mortgage calculator. I have found one, our good friends at Google have a mortgage calculator. I’m going to put in a purchase price of $100,000 I’m gonna put an interest rate of 7% I’m going to say we agreed to make payments over a 10 year period.
Usually it can’t get a 10 usually you can only get like a five or a six if for some reason I’m on the Google calculator, I can only go as little as 10 years. But the point is you’d be paying like, you know, 1500 a month, we’ll call it [inaudible]. So, but you just be paying it to the owner as opposed to the bank, right? So if you can’t get qualified for a loan, if the bank doesn’t want to do the deal, but the owner does, you can just make payments to the owner. Right? And I’ve done those kinds of deals before and it works out well. And the situation was sort of a roundabout way doing that. Yeah, and just get an agreement, get a contract. You can do that. But if they’re willing to owner finance, sometimes that’s a really quick way to get the deal done.
But if you’re done with a bank, banks only want to deal with conforming loans that make sense and meet their criteria. Jason, what is the next great super step? Super step number nine is determine a plan for what the former owner will now be doing after the sale. I like this button. I’m gonna hit the button again. Can you read it again? Please determined to plan for what the former owner will now be doing after the sell. Ah, okay. Lot of times you’re going to create a monster cause nobody wants to talk about, you’ll create a monster cause nobody wants to talk about what the owner’s going to do now that you’ve bought him out and a lot of times they’ll take that money and start to compete with you right across the street. I’ve only seen that movie happen a lot of times. I’ve only seen that particular move used a lot of times.
So you’ve got to get an agreement that the homeboy who bought compete clause did homeboy, you, you just bought the guy you just bought out isn’t going to compete with you. Right. So like let me just give an example. I don’t want to own a DJ company right now, but about a year ago I started thinking about wanting to do it again. Um, cause I could do it so much easier now. Right? Sure. And I can tell yet you would not want to compete with me. I believe that. So I pulled up my noncompete agreement then and I looked at it and I go, Vanessa, can I compete? She says, Oh as a family I’m not allowed to right now, but illegally. No, not until this day. Okay. So I circled that. You’re still under that? No, it’s over now. Oh, it’s over now. And I really do. I mean I just, there’s certain days where I’m like, I want, I can be, cause it’d be so fun to destroy the company I built. Like that would just be so fun. It would just be so fun just loading up mega points and, and just just getting mega points and Gallagher points, Holy cows and just,
just the energy of just beating a company that you just, but then I go, nah, that’s not nice. When I think about it, like
who cares? Maybe I should just do it. I said, I just don’t know what to do. I get these feelings of game alive and I just, I want to do it to my son says, dad, I want to be a DJ. I’m like, are you kidding me? This is about three years ago, right? So I started doing some Google search and I’m looking for the phrase, I’m just typing in Tulsa DJs just to, you know, flirt with the idea. Right. And I’ve heard great things about your son’s deejaying skills and I’m going right here guys. This is going to be really easy to win in Google. And so I’m just, I’m throwing it out here. I think BJ, Aubrey might be top and Google’s, I’m just saying because nobody has the diligence, the tenacity. Nope. The focus, the commitment, you know, cause they want to go out and you know, joy time on the Lake.
That’s okay. But it’s like if Tom Brady is Tom Brady, no matter what team you put them on, right. Well and now he’s developed that confidence, which you have that confidence. You’ve built it before and now you know you’re going to build it again. I asked her quicker, better and stronger. If you’re out there listening and you’re going, what are you, what are you really saying? I’m just saying, I haven’t started beating myself, my company. I started but look out. Look out. Yeah. Yeah. I’m just saying I’m just coming for, as soon as I get the uh, uh, approval to do it, I’m going to do it and it’s going to be awesome. It’s going to Q, the jaws theme right now, Thomas, I’m just saying I really, really want to do it and I just feel like I should do it today. Like, Hey, I have to wait a certain amount of time.
I have to wait and so get that non-compete sign. And I did, I signed a long one. I think mine was like 10 years where I was gonna say that I would have to be a pretty long one. It was like 10 and the reason why is because the guy who bought it from, he realizes that what he’s dealing with here and he’s like, [inaudible] promise not competing. Absolutely. I’ll honor my agreements, but only until the agreements over. Sure. And then I’m ready to go again because I’m no longer bound bat Shunda I want to do it. I will get excited this morning, one day, start my own, start a company to beat my old company, but I can’t do it yet. I got to get the proof on the wife. Okay, Jason, what’s the next step? The next step is paint the walls. Paint the walls, paint the walls.
Step 10 paint the walls. You must paint the walls. When you buy a new business, you go in there and paint those walls. Put find a wall. Let’s say that the previous owner had a blue wall and your favorite color is red. Paint that wall red. Paint the wall. Go in there and paint the walls. Why do you have to paint the walls? Well, one, why do people let it get kind of campy? There’s disrepair. Maybe the wall is scuffed. Maybe the walls are, they need some freshening up. Okay. Just painting the walls. Even if you pay them the exact same color shows. Wow. They’re freshening things up. Just get that sign freshened up. Just freshen it up. Maybe keep the exact same color, but just freshening it up. Shows. Wow. New management, new energy. This is a positive place. This is a good move.
Paint the walls pink. Have you paint the walls a different color that says change is coming. So if you’re going to quit, do it. Now. If you’re going to leave and go to another cuff guy, another business, go do it. But, but some positive change will happen. But I’m gonna. I’m not going to be loyal to things that didn’t work in the past. I’m going to paint a wall. When you paint a wall, it shows activity. I actually know of a minister, a very successful pastor. [inaudible] who always is painting a wall. He insists that his church, they’re always painting something. Okay. Do you know why he’s always doing that, Jason? I don’t why you’re not gonna get too comfortable. There it is. We’re going, we’re going to keep things moving forward. He always wants the church to be progressive and moving forward and he finds that the congregation loves to see productivity and it’s a major campus, so he’s always painting something so that way it’s never in a state of disrepair.
Right. Have you guys ever watched documentaries about how they maintain the golden gate bridge? Yes. That’s pretty fascinating. Crazy. What, what do you recall from watching that show or a show about it? Actually just the, a, the man out the diligence and the man hours. I mean, the, the amount of paint, the, um, the process it, they’re never done. They’re never finished, but it’s an ongoing constant. There’s some dude I watched, I, there’s like a, there’s a bunch of people, but I think there was a team of dozens of people in like, there’s some dudes, he literally, all he does is paints the bridge and it’s something crazy. We’re like, once he gets to the end of the bridge, he starts again, turns around and does it again. And it’s like every six months because like the walking the bridge and there’s people inspecting it constantly and any kind of little thing, they’re gonna, they’re gonna fix it and change it.
And I mean like daily they’re checking the same thing they checked yesterday. So if you’re out there today and you’re thinking about buying or acquiring a business, those are the 10 steps. But Jason, a lot of people, um, mainly, uh, me a lot of times, um, we get distracted during a podcast. Right. And we maybe need a recap of those steps. Yeah. So maybe we can, we can recap those. I think dr Breck has a, has a hot take for just kind of a question. So this painting a wall, is this a little bit like a market in your territory? Yeah. Is this kind of like a, Hey, like I’m here and I don’t have a place? Yeah. I don’t have a specific list. Kind of like a, a very rudimentary Neanderthal, you know? Um, well, let me animalistic looking territory. Let me tell you what I, what I did is that the, um, clean lips saying it fairly recently, um, there was a certain member of, uh, one of the companies that I owned who was wasn’t minority partner.
This is, you know, years back and he started, um, philosophically disagreeing with a lot of things I do. OK. So always questioning the ethics. So let me give an example. Did you get to get to, to get to the top of Google, Jason, there are four steps you have to take. What are the four steps to get to the top of Google? Four steps are you have to have the most Google reviews. Most Google reviews. You have to have the most objective Google reviews from real customers. Yes, continue. You have to have the most original HTML content. You have to be Google canonical compliant with your website and you have to be mobiley compliant with your website. Oh, by the way, you get 1000, 307.23 mega points. Impressive 0.23. You can redeem those at dollar thrifty. It’s a dog that dollar, what’s the dollar store? It’s door thrifty and real car.
I used to work for them. Yeah, you can go in there and try to redeem. I’m not, not sure we have that all the agreements worked out yet, but doing it, they don’t exist anymore. You crafting your liking, sir, sir, I’m here. Um, I realize you’re no longer in business, but I have 1.2 3000 mega points. Can I exchange these for a car anyway? So anyway, partner who would, who would say clay sites look gross when you load them up with all that content and I just, it looks stupid. Furthermore, I think some of the articles we’re writing don’t make sense. I just don’t think it’s ethical to write crappy articles. And I’m like, look it, look here buddy. Who are you to say that? Me and my team who right. Only the crappiest fine articles are, are shady. I mean we’re trying, but you’ve currently written zero articles that you’ve been here for years and you’ve been talking about the articles you’re going to write and the pages you’re going to write, but you don’t do it.
So I do in the best I can. I’m having people on my team write the best articles they can and if we write in an occasional bad article, sorry, but you know what? We’re doing our best, right? Well, it’s just shady. You’re asking people to leave you objective reviews. They should only do it if they feel prompted by God or by themselves. Like get outta here, get you. They won’t. Yeah, seriously man. I brought him the guy to speak to our team who happened to not be a Christian, but he’s very successful and the guy’s like, I think the spirit of the Lord is condemning. I make this feel like it’s, it’s keeping our business from growing because we brought in an outside speaker who’s not a Christian. I’m like, are you kidding me? Are you serious? I have a guy coming to T to teach our team who used to manage thousands of employees that one of the biggest companies in the world and because he is not a Judeochristian, he literally didn’t say a single thing about religion at all.
He was just teaching the concept of the group interview to our team saying that when you have thousands of employees, you have to interview all the candidates at one time. You don’t have time to read resumes. Right. You’re saying that because of that, somehow the spirit of the Lord is hurting our sales. Get outta here. I said, we have to switch the website to WordPress. He says, no, no, it looks better on PHP. I’m like, I don’t care about PHP. I want it to rank in Google. So I just had somebody whose head was so far up their anus that I had to let them know a few things. So I wrote all of the truth that you see on the walls in one night, and he came back to work and he’s going to the urinal and it says right there above the urinal, it says, I do judge you based on what you do.
I do see you Facebooking, Instagramming, and I do record your keystrokes and all the employees who are here. No, I do that anyway. Right? But I think he forgot I was doing it and he says, did you do you record my keystrokes? Nice. I do record your keystrokes and that’s how I know about the prostitute you hired. And he says, huh? I said, yeah, see, I know those things. I don’t know if the church you go to would be interested if I tweeted the map, what if I were to tweet, tweet, tweet, look, see what this guy just bought today. Look at that. Maybe the spirit of the Lord was more a condemning of that. That’s what I have to say. So I said to the gun, shoot, [inaudible] prompted that conversation, right? And he was like, you record my keystrokes. And I literally said to him, I said, yeah, that’s how I know about the prostitute you order.
He goes, you know about that? Yeah. And I know about the weed. You smoke. I know it’s legal in this city, but I know about it. I also see the LSD use. I know that. And I know about you faking being sick because I record your case drugs. You see I do that. And so I need you to leave and he was spinning, but he was so offended by the picture of Jesus. I put up in the Israeli flag and all of the notable quotables that made it such a polarizing environment that he couldn’t be here anymore. He was like, it was like wigging them out. Right. I love that. So good. When you paint a wall, it’s a polarizing idea. I encourage you right now, if you don’t know who’s for you or against you, painting a wall is a powerful thing. Maybe put a big fat head on the wall, a big print on the wall that States something that you believe that will offend the people who don’t believe that thing.
Like as an example you could put on the wall. I’m not saying you should do this. You could [email protected] we are not late for appointments and then parentheses or your money back. You put that guarantee on the wall. Let me tell you what happens. A customer will see that and a patient will see it and they go, wow, this guy values being on time and all of a sudden the member of, not your team, but somebody else’s team who’s chronically late, they recognize, wow, that’s a crazy statement. Are you saying we’re going to refund people? And I’m like, yeah, yeah, yeah. And all of a sudden it fixes things real quick. When you paint something on a wall where they put up that big old, a mural of of LeBron James in downtown Cleveland, when he signed with them, he says, I’m back. Right? Let me tell you what that did for the city.
It gave that city that confidence that LeBron James was back, right, and when he went, when he signed with LA and they tore that thing down almost immediately, that set something right. Paint a wall, paint a wall. It absolutely polarizes it sends the right messages to the right people. Jason, recap that, that that the 10 steps of determining whether to merge and acquire a business or not that that the 10 steps to properly merging and acquiring a business. Alrighty. Here we go. Step one. Make sure your current business has a strong leadership team and will not fall apart when you are not there. Check. Step two, look for businesses that you can vertically integrate. Check. Step three, make a dream. 100 list of businesses to buy Roger. Step four, call them all until they say no or yes to having a confidential appointment.
All right, y’all should check over. Uh, what, what’s your, what’s your Victor vector?
Uh, I didn’t know the answer to that question, but step five is meet with the potential seller.
It’s cutting out back to you
going through a tunnel. Step six, determine if their business is, uh, determine if their business is bankable.
Hello? Would you mind walking when I walked you wandering during we’ll be serving cater tops. You shuffle more on students or I stand for the pledge of allegiance arena. You know, we’ll, I’ll be saying the pledge.
Step seven, determine if their team would work well with yours.
In case of an emergency, we’ll be in an airplane and then there’s no chance of survival. So
step eight, see if the seller will be willing to owner finance.
Sorry, I forgot I was on a mic. Step nine determined to plan for what the former owner will be doing after the sale. How you doing? Great step tin, paint the walls, paint the walls. This Justin. That’s how you do it. If you’re thinking about buying a business, those are the steps you can do it. Dr Breck, any final thoughts about merging and acquiring for the listeners out there? Any thoughts? Any final pontifications cause you’ve been in business for a long time. You’ve seen some good things, some bad things go down. You’re a great chiropractor. Any, any final words of wisdom or any questions? Maybe just any question. Do you have a question on a step nine where it talks about what the former owner will be doing? Yeah. Um, and then, uh, you know, the two headed monster, uh, having ownership. So we kinda, we kinda glossed over that.
But uh, yeah, I know some, some mergers and acquisitions, former owner stays on board for, you know, 90 days. I’ve got a really hot one and, and I think you’re going to tell me no, they need to be out the door. Yeah, I got a hot one that just happened recently. There’s a big organization that, uh, recently acquired another one [inaudible] and the owner said, the current owner said, if you’re going to buy me, I would like to stick around for two years, just as sort of like a leadership role. I’ll be like your assistant. It’ll be very clear that you’re the owner and I’ll be like the co owner [inaudible] just so I can show my support and keep, you know, the loyalty there. Well, the new owner makes some changes, like one of which he says, moving forward, we’re going to have our team meetings at this particular time.
Used to be at this time, but now we’re just going to move to this time. Right. Sets the time. All is well. [inaudible] the new owner shows up for the new time for his meeting and no one’s there. Right? And he calls the previous owner and says, what happened? He says, Oh, a lot of people didn’t like the new time. And so I went ahead and just changed it back, I guess I forgot to tell you. [inaudible] and wow, that sent a powerful message. Right? And then the new owner wanted to raise prices just a little bit. [inaudible] it was like something stupid, like a dollar per service or just some little amount. Right. And he did. And then the new people were like, I don’t think it’s gonna work. I don’t think they were going to like this. I don’t think we should do it. And they went to the older one and the old, the old owner said, you’re right guys, I don’t agree with this.
I mean, let’s keep the prices now, but I don’t agree. [inaudible] so there’s two different cultures going on and he got really, really mad in every aspect. And you know how that situation ended up ending, you know, the new owner ended up, uh, going into litigation versus the old owner for doing actions that were harmful, um, against the business. Right. And, uh, basically pointing out that he had a fiduciary duty not to hurt his own company. Right. And he was hurting his own company. [inaudible] and they forced him out and had to change the locks. And he’s still got his check. But he was a force. It was a forced removal removal. Yeah. And that happens a lot. So just be very careful and intentional about addressing what’s gonna happen to the new ownership. Have a clear plan in place. Yeah. What happens to the old owner?
What happens to the new owner? Have a plan in place or it gets really weird real fast. But you would say that transition needs to probably happen pretty quickly too. I would just say deals with, it has to do with the temperament of the guy you’re buying out or the lady you’re buying out. Because I know of a situation recently where one of my clients was acquired recently and they asked him to stick around for a year and he’s a very calm guy and he actually likes it and they like him because he’s the kind of guy who was thankful somebody wanted to buy him. He got on board and he loves it. He’s commented to me. He said, I’ve w I prefer not being the owner. Right. I actually enjoy it better. It’s a great thing. I love these guys. They, you know, gave me a huge nest egg, million, millions of dollars in the bank and now I have a job.
I just like it. It’s a better deal. And they refer to him as the founder and he runs around as being the founder. Yeah, but he doesn’t have the responsibility or the weight of running a multi, multimillion dollar business. There you go. So if you’re out there today, that is how you determine what kind of business to buy. That’s what you do after you buy the business. That’s how you acquire, acquire. That’s how you merge. That’s mergers and acquisitions. One Oh one my name is clay Clark. That’s doctor brick, D R B R E C k.com. If you have a spine, do I have a spine? If it was fine, I think I have a spine. If you have a spline and you are in the Tulsa Oklahoma area, I encourage you to go see dr Breck. He’s a great chiropractor. Currently the highest and most reviewed chiropractor in all of Oklahoma.
To my knowledge, at least Tulsa for sure, and the first exam is free. The first adjustment is free. The first x-ray is free. It’s all free so you really have nothing to lose and you can decide whether dr Breck is a good fit for you or your family or not. Maybe you go in there and you have the best time in your life and you say, this guy really helped me with my allergies, my chronic pain, Ms. Guy really helped my sack or really yak and my back helped me with my allergies. I feel so much better. Or maybe you go in, you show up 47 minutes late, uh, maybe you get frustrated that the doors are closed because you’re 47 minutes late. Maybe you’re upset that they set appointments. Maybe you don’t like the fact that he’s prompt. Maybe you’re the kind of guy that doesn’t like to deal with a professional atmosphere.
Maybe you are upset that he’s not officing in a a a flea market somewhere. Maybe you don’t like the professionalism. Maybe you don’t like the fact that he’s physically fit and confident and that he cares about you. Maybe you don’t like the fact that he cares about his patients. And a probably unhealthy way. Maybe you don’t like the fact that he’s been doing this for how many years, dr Breck 15 going on 16 yes. If you’re looking for a startup chiropractor who’s sarcastic and always late and really doesn’t give a crap at all, who’s officing in a flea market and Sapulpa, you’re not going to like dr Bragg, but if you’re out there looking for a professional guy, you’re gonna like him. Check him out today, dr breck.com that’s D R B R E C k.com. It’s D R what’s, what’s the website? You might say, well, clay, I can’t go there.
My carpal tunnel hurts so much. Well, he can help you with the carpal tunnel issue, but you’ve got to get there. So I want you to get out like a hammer and somehow use the bottom of the hammer to type in, Oop, Oop on a computer keyboard. Have your friend help you, but go to dr Breck. Not say, what the heck. I’m going to dr breck.com and book that appointment because I’m, once you, once you booked that appointment and you experienced that pain-free, that pain release, that pain relief, your life is going to get better. We looked at each and every show with a three to one and a boom, but on today’s show we’re going to go a four, seven, three boom. Why? Because I want to be memorable for seven eight boom. Dr bragg.com.