Dec, 2023

How To Build A Successful Company Step By Step

Rob Rowsell shares how to build a successful company from the ground up. Rob built a multi-shop auto repair business and invested his wealth wisely. Eventually, he cashed out and sold his business, transitioning to a passive residual income. Here’s how he did it.

Build A Successful Company – Step By Step To An Extraordinary Business

Rob starts out the discussion by introducing us to a five point strategy to build a successful company. This takes in all of the phases, from purchasing the business all the way to cashing out and retiring into a new life post-ownership. Here are Rob’s steps to business success:

Intelligently Invest Your Active Income

Congratulations! You now own a business. Chances are you are working the counter and doing other jobs as you establish the systems and processes your employees will follow. Ideally, others will handle all of the day to day operations once you are more established. Meanwhile, you need to be socking away whatever cash you can from your active income. Opportunities will come along to increase that income as your business grows. As your income increases, your investments should, too. Rob goes into great detail about those investment opportunities in our monthly Zoom meetings. Are you serious about growing wealth as you build a successful company? You owe it to yourself to join the ATL Community.

Pay Yourself Tax Efficiently

There are many tax benefits to owning your own business. You must pay yourself first, but don’t take chances. Make sure you consult with your CPA regularly to find legal tax advantages. The more money you can keep, the more you can invest.

Build a Successful Company by Using Active Income to Build Your Net Worth

Your business is an active income machine. It’s easy to keep escalating your lifestyle as the money rolls in, but avoid going overboard! A few Community members also have worked in the auto repair industry, and can attest that it is a great bang for buck investment. When you purchase and renovate an automotive shop, the revenue will soon pay you back.

Grow Your Company’s Value

Business growth is always an unrealized gain. Therefore, it is extremely tax efficient. Over time, you could very well 10x the value of your business from the purchase price over the years. This could be done by opening more locations and finding new revenue streams. You will not take a tax hit on the value of that business until you eventually put the business up for sale.

Transition to Passive Residual Income Over Time – The Final Step to Build a Successful Company

There are many opportunities to invest your active income. If you play the money game right, you can eventually replace your active income with regular passive residual income. Eventually, that means you can retire and live off of mailbox money derived from your investments. Remember, to build a successful company is only one part of the financial journey. The end goal is to eventually work yourself out of a job!

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL Inner Circle Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

Mar, 2023

Real Estate Due Diligence Checklist – Deep Into The Weeds

Do you plan to invest your money in a business or property? Then you MUST fill out your due diligence checklist. This includes population demographics, surrounding businesses, competition, economic conditions, and more. Rob goes DEEP into the weeds in order to discuss all of the research factors you should consider. BEFORE you invest in any kind of business, you must watch this video!

Auto Repair Shop Investing Due Diligence

Rob began by listing off just a few potential businesses that one could invest in. Consider everything from coffee shops to apartment complexes to auto repair shops. All of them have one thing in common. Researching their demographics is key. An average investor may be interested in injecting capital into a business. In that case, they would be wise to do their homework.

Specifically, Rob then expanded on due diligence for aspiring auto repair shop owners. Perhaps you are investigating a vacant property. You wish to build a new repair shop on it. In that case, consider the size of its population. Next, take a look at how many existing automotive shops serve that community. Are you currently considering an underserved region? Or is the area already overserved? Rob calculates that one average sized auto repair shop can serve up to 1,000 households. Is your target city’s population approximately 20,000? Then it could theoretically sustain up to 13 successful shop locations in the area.

Researching Household Income

However, you are not just looking at how many people live near the businesses. You want to know what the average household income is. Aim to plant your business in the middle of a thriving community. That means its citizens average $70,000 or more in annual income. These folks are much more likely to prioritize maintaining their vehicles than other, less fortunate individuals. That may not be a fun statistic to quote, but it is true. We are all trying to make a profit. And we want to do it without fighting a constant uphill battle.

What about investing in existing auto repair franchises? That honest mistake ensures you will get a smaller cut of the pie. All the while, you will work harder in order to fit into someone else’s mold. Investing in a turn key, existing business can still benefit you. If you find this idea appealing, then seek out independently owned auto repair shops.

Due Diligence in Real Estate Investing

Moving on, we discuss the real estate industry. Rob discourages pursuing properties on apartment listing aggregate websites. Many of these sites set off a race to the bottom. When this happens, competition can get fierce. The properties listed on these sites often end up driving down prices. They do this by offering move in specials. Everyone needs a place to live. Discounts like these help a lot of lower income renters. However, you want to invest in higher end, multi-family properties. Those will not be surrounded by stiff competition. They will also give you much larger returns on your investments.

Next, let’s talk about your area’s demographics. Rob lays out an ideal situation. Let’s say the community population is 100,000 people. You will want there to be no less than one hospital nearby. What’s a tip many folks may not consider? Scout a property that is 30 minutes or less away from a major airport. Rob prefers an international one. Are you investing in rental properties in multiple large markets across the country? Then you will want them to be easily accessible to you. Let’s face it: you are busy, and you don’t need to spend your time driving all the way across town to assess an issue with your complex.

Investigating the Area’s Economy

Moreover, you must examine the economy in your chosen area. Job growth should consistently be trending upward. That figure should read a 4-5% minimum, year over year. You will also want a diverse selection of industries throughout the city. Many communities’ economies are based on only one industry. This could be, for instance, a car and truck manufacturing plant. That factory, situated in the town’s industrial zone, may employ half the town. Thousands of small businesses have sprung up around it to serve its employees. How many times have we read headlines about those plants moving overseas, and ruining the area’s entire economy? Now, the plant workers, as well as the other businesses’ employees, are all out of work. If you invest in a shop serving these people, you and your staff are next.

Rob also mentioned the huge hit that the hospitality industry took during the COVID-19 pandemic. If an entire town’s economic hopes are pinned solely on a resort, an event like that will sink it. Every town is a business, and just like with any successful business’ investment strategy, diversifying is key. Remember this when you’re doing your due diligence.

Join the ATL ALL-In Financial Community

Do you currently own multi-family properties? If not, do you wish to invest in the future? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, you will join your fellow investors on a live Zoom roundtable talk. Rob Rowsell will teach you what you must do in order to build wealth in the lucrative real estate industry. It is not nearly as easy as it looks! Property taxes, liens, and legal fees can all be mind numbingly hard to navigate. Having a successful guide in your corner like Rob is a must! So sign up today!