Small business owners represent about 75% to 85% of all U.S. businesses. Over the past nearly 20 years, as a business broker and investment banker, I saw hundreds of businesses and talked with many, many owners. I wanted to share my observations with all of you. I believe you will benefit significantly by reading this book, regardless of the road you take.
Some small business owners became Rich Owners. I noticed that the Rich Owners had implemented consistent winning strategies in operating their small businesses and had consequently built million-dollar net fortunes and more. They made a lot of good investment choices and avoided financially destructive ones.
The Rich Owners chose wealth-building paths. Rich Owners didn't SELL their small business. They didn't give them away for pennies on the dollar, or dump them onto the first buyer that walked through the door! They knew it was worth a lot more to them than the market would pay!
Selling was not the answer! I'll show you how it's a two-to-thee-year financial poor choice! Many Rich Owners managed their businesses themselves. Or, they hired a manager to run it for them. They implemented many of those best small business practices I observed. I'll share them with you. They invested in and through their small business. Let me repeat that. They invested in and through their small business.
Successful owners put their extra money back into their business to drive growth. They hired good people and built out their management teams. They took all their available tax deductions and tax savings, invested fully in their retirement plans, and funded savings accounts and stock portfolios. They also purchased the building to house their business. Consequently, over time, they built significant wealth for themselves.
Successful small business owners made many of the right choices. Follow the same path yourself, and you will also create a high net worth down the road.
As a Licensed Business Broker, a Licensed Investment Banker, a Licensed Financial Advisor, a Licensed Securities Broker, a Licensed Real Estate Broker, and a broker of many things media, I saw a few things along the way. I believe my observations may help you financially in your journey, whether you are a small business owner or a potential owner. I want to share these observations with you.
Small business owners operates in a big, unfair, and competitive marketplace. I would like to see the small owner catch a break by working on a more level playing field, and thereby experience increasing success, and wealth.
I'll point out examples of winning financial strategies by successful small business owners. They included things like taking full advantage of small business tax deductions and of owner's discretionary earnings deductions. They made smart choices like buying versus renting the company building, and taking excess cash to over-fund retirement and stock portfolios.
I'll show you the short term and long-term financial consequences of those decisions, and how they made some owners the millionaire next door.
You now have the essence of this book. Read on to learn more about the choices facing all small business owners.
Make the right choices and follow the right path, and become a Rich Owner yourself!