Last updated on December 26, 2018
Lots of people dream about creating a business… but what about buying one?
When it comes to startups, there are plenty of downsides:
This is why Jonathan has bought 29 companies.
In this post, you’ll learn:
The company had a few customers and was making about $3,000 per month. Jonathan brought the company for $250,000 (paid over 30 months) and began to make small tweaks, starting with pricing.
When acquiring a company, Jonathan will only focus on companies he knows he can improve. He looks for 5 main elements:
I’ve learned to focus on similar high-leverage items — and ignore the rest — while building my 8-figure business Sumo.
It’s possible for you to use these ideas to grow your business too. Don’t let the wantrepreneur mindset pull you off track.
|BONUS: 7 marketing tools I've used to grow multiple 7+ figure businesses|
When you’re buying a business, you need a great team.
But most companies hire crap employees… even if they say they’re A players!
Avoid them completely!
Instead of obsessing over hiring the people who work at Google or Facebook, look for market inefficiencies in the hiring world.
Jonathan thinks of hiring like a quadrant to take advantage of weaknesses in the market.
On the y-axis you have highly skilled workers and underdeveloped talent. On the x-asis you have great teammates and bad teammates.
Jonathan eliminates three sections of the quadrant:
This leaves great teammates with underdeveloped talent.
“I hire them every single time,” Jonathan explained.
For example, when Jonathan hired his right-hand woman, Teri, she’d just returned from the Peace Corps.
Teri didn’t know:
But Jonathan loved her attitude and thought he could teach her how to be successful in business.
She’s ROCKED it. Today, she’s Jonathan’s director of operations. 🚀
Great teammates who don’t have the talent yet are diamonds in the rough:
Focus on market inefficiencies to hire teammates other people undervalue.
We started 100% free. Then, we played around with a bunch of different variations until we hit the pricing point that’s just right (for now).
These pricing changes were a big part of our journey to become an 8-figure company.
|Want more ways to 2x (or more) your business?|
Most entrepreneurs totally mess up their pricing.
If you do this, you’re potentially leaving tons of money on the table.
Changing price is the easiest win for a young company to GROW.
When Jonathan acquired one company, the product was being sold for a one-off fee of $5.
Through pricing experiments, Jonathan managed to increase the pricing to $9 a month before sign-ups fell off.
Money in the BANK. 💰💰💰
Once you’ve found the right pricing structure, you can also start to invest more in marketing to increase revenue.
This means you could test a bunch of marketing tactics:
When you find a marketing channel that works, go all-in. And squeeze all you can from the channel using the Content Multiplication formula!
Here are 5 key lessons from Jonathan buying 29 businesses...
Want more lessons from Jonathan Siegel — the entrepreneur who’s bought 29 freakin’ companies?
Check out the full episode below.