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!

Multifamily real estate investor Rob Rowsell outlines the 7 Investment Tips for Business Owners. You can take total control of your finances when you invest profits intelligently! Compound interest and your own unique advantages are just two facets of your wealth building journey. Make sure you also have an exit strategy…from life itself! Pass your estate on seamlessly to your heirs, but not all of it. Most of it should be given away to good causes.

Breaking Down 7 Investment Tips for Business Owners

You want to build a business, and not a job, right? Of course you do! These are the seven investment tips for business owners who want to grow into a passive income and out of the rat race.

Tip 1: Grow Your Business

If you want to have money to invest, you have to grow your business. How? Stack cash! In order to stack cash, you must increase your gross sales, gross profit, and net profit.

Tip 2: Intelligently Invest Your Profits

Once your cash is stacking up, investing it wisely is key. Set aside spare time for education outside of your business. When you look at yourself from an outside-in perspective, you can identify your advantages in the marketplace. Some business owners, such as Rob, have found their fortunes in real estate investing. Other investments may play more to your strengths. Over time, the money you put away for your outside investments will overtake your annual salary.

Tip 3: Control Your Personal Spending and “Leakages”

Live within your values, not your vanity! It’s hard to fill a bucket with water when there are little holes all over it. In much the same way, you can nickel and dime yourself out of untold wealth with unneeded purchases. Think of how much that former smokers estimate they save each year after quitting. Now, think of your daily candy bar or Starbucks habit. How much spending can you avoid each year by giving that up? Better yet, what if you invested all of that money in a mutual fund with high yield compound interest?

Investment Tips for Business Owners – Advanced Steps to the Finish Line

Tip 4: Actively Reduce Your Tax Drag

It’s not what you make, it’s what you keep! Saved taxes is an income bucket. If you find (legal!) ways to save on taxes, investing that money can equal huge cash returns over time! Remember, you are the quarterback of your finances. Nobody will care as much as you should! That includes your CPA and investment strategists, so don’t just blindly trust them to do the right thing every time. You’re not their only client, and everybody makes mistakes, so keep an eye out.

Tip 5: Avoid Stupid Capital Losses

We’ve all been tempted once in a while by new financial trends promising big short term returns. Hopefully, you have not been conned by cryptocurrency schemes or other random investments with no due diligence. Everyone (including Rob!) has fallen for this kind of snake oil. Don’t get fooled into thinking that you can successfully invest as easily as you can run a profitable business. Line your pockets, and not a con artist’s!

Tip 6: Let Time Compound My Net Worth and My Advantages

When you put the previous tips into practice, the goal is to build an additional wealth engine. This engine is independent of your business. The longer you work at establishing it, the less work you will need to put into it, as the engine will start running without your help. How? Once again, remember that the keys to starting this engine and keeping it running are using the education you’ve acquired in the marketplace to gain experience. Nobody starts out as an expert in any given field. If it were easy, everyone would do it. Putting in the work over time will both compound your net worth and your advantages.

Tip 7: Build My Estate Plan and Philanthropic Legacy

As you approach the finish line of your career and life, money will be less and less of a worry. Since you have built passive income over time that will serve you in retirement, you should turn your thoughts to what that money can do for others after you die. After all, you can’t take it with you! You invested your wealth both to provide a comfortable retirement and to help your survivors.

A staggering 70% of all wealth transitions do not end well! Regarding inheritances for your family, Rob recommends the book Preparing Heirs. It’s a game changer! Bottom line, choose an amount of money that can help your heirs live comfortably. This shouldn’t be an extravagant figure. Then, you should pick an age when your heirs will be mature enough to wisely invest that money. You should give the majority of your wealth away to philanthropic causes. We all know that helping others through scholarships, church mission funds, or other good causes will do exponentially more good than just giving it all away to our kids.

Conclusion – Investment Tips for Business Owners

That was Rob Rowsell’s quick and dirty outline of seven investment tips for business owners. These are the same strategies Rob has used for years, literally working his way up from nothing. From a homeless drug addict to working in an auto repair shop, to then owning multiple shops, to finally selling those businesses in order to concentrate on real estate investing. Most importantly of all, he also teaches others to build wealth like he has. That means you! If Rob did it, then you can too! Why not join the ATL Community and let Rob guide you personally? Sign up today.

Take it from Rob Rowsell, a successful business owner and entrepreneur: there are three and ONLY three reasons why you should buy or start a business.

1. So you can sell your business to the highest bidder
2. In order to scale your business
3. So you can passively own that business

In this video, Rob details the factors that you should consider, as well as the goals you should keep in mind in any new business venture.

Want To Start A Business? Are You Sure?

Rob started the clip by immediately laying out said reasons. Just like the first habit from Steven R. Covey’s “The Seven Habits of Highly Effective People” outlines, every business owner needs to begin with the end in mind. Then, we get to the business of unpacking each reason you would want to start a business.

Setting the End Goal of Selling Your Business

When you decide to buy or start a business with the intention of selling it, you must be prepared to work toward that goal each day. Every move that you make on a daily basis should lead toward making it attractive for a potential buyer. This statement is true, whether it involves your daily operations process, investing in the property, or cultivating an appealing work environment.

When potential buyers called to show interest in one of Rob’s previous ventures, he instantly recognized that some factors that were out of place. However, his situation dictated that he had to accept that it was “good enough”. He learned to be better prepared for the next time the phone would ring.

Start A Business To Scale It – Strategies to Implement

In Rob’s past experience as an auto repair shop owner, he scaled his business via acquisition. Specifically, he grew the business by adding more locations. He also improved the existing shops by building additional bays and installing more lifts. These steps were a must as the brand continued to grow and attract more customers daily. This of course also meant Rob scaled the business by creating new positions and growing his staff. When potential buyers come calling, they are looking for a turn key investment. In a business like automotive repair, this means franchises that have built trust in their community over the years.

Owning Your Business While Earning Passive Income

What does passive ownership look like? In effect, the business generates passive income for you while you focus on other pursuits. You have thoroughly trained your managers and assistants on every facet of running the business. They do not need you looking over their shoulders, and the business runs smoothly in your absence.

If that is your ultimate goal when you start a business, then it means working less than ten hours per month in it. That is the work hours number that Rob and his wife Claudia agreed upon after crunching the numbers. Their home state of California’s liability laws caused this business plan to be very difficult. Changes in employees’ lives would make it extremely difficult for Rob to avoid having to put out fires in person. Thus, once their automotive repair business had scaled to a certain number of locations, passive ownership was impossible. At this point in its growth, selling it was a must.

Start a Business – Figure Out Now What Your Exit Strategy Is

Just like Chapter Four of Rob’s best selling book Addicted To Life states, you must prepare now for what is coming! Whichever reason you choose to start a business, do your homework. Laying the foundation well in advance for your end goal will ensure that you get the maximum return on your investment.

If you intend on selling your business someday, you should make sure all of the legal documents to facilitate a sale are stored safely online. In fact, you should have all of these files on hand before you even start the venture! Just gathering all of this information could take up to three to six months. Slow and steady wins the race, so don’t rush and get sloppy.

Scaling your business or working toward a passive ownership model will take even more time. You will want to consult with successful people in your field and others to see what those end goals look like. Accepting help from colleagues who have been there already is never a bad move.

The Big Takeaway

Rob wants everyone to be clear on what their business exit strategy is before they buy. Just like a college freshman, you have time during your career to change your “major”. That is to say, things won’t fall apart if you fall in love with the industry and decide not to sell or scale back your schedule to own passively. However, you should still take every step available to you in order to prepare for what your end goal is now.  That way, you won’t get caught with your pants down if you change your mind later.

Join Our Community

Do you own multi-family rental properties? If not, do you aspire to invest someday? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth via real estate. 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! Enroll today!

We real estate entrepreneurs are Type A Personalities. We’ve learned to mellow with age. While we are healthy and in a good financial position, we need to relax and enjoy the fruits of our labor. A side benefit of taking time off? Your employees can show you how well they perform when you’re not there watching over their shoulders! Enjoy life’s blessings and plan a vacation today – you may not be in the position to do so tomorrow!

Type A Personalities – Stop And Smell The Roses While You Still Can!

Recognizing the older, successful Type A Personalities in the room, Rob provided the example of how strict a boss his father was when he was younger. Rob said he and and his co-workers felt lucky to get lunch breaks and a weekend off! Later on, Rob’s son Micah worked for Rob’s dad. In stark contrast, the elder Rowsell was much more lenient with young Micah. We all tend to mellow with age, and (hopefully) become more empathetic of others.

One of the perks of investing well throughout our careers is the ability to enjoy the fruits of our labor. It may be tempting for us Type A Personalities to keep our noses hard on the grindstone to the very end. What good is the wealth we have earned if we can’t enjoy it, though? While you have time, money, and health, plan a vacation getaway with your significant other. If you don’t, you will regret it.

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 Addicted To Life 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! Enroll today!