Invest and Scale cover logo

EP25 Investing in Online Businesses: A Glimpse into the Journey and Vision of Black Book Investments

49m · Invest and Scale · 01 May 15:27

In today's digital age, online businesses are thriving, offering investors a unique opportunity to tap into this growing market. In a recent podcast episode, the founder of Black Book Investments discussed their journey in starting and growing a micro private equity company that buys and operates a portfolio of online businesses. This article will explore the key insights shared in the podcast, from the importance of due diligence to investing with Empire Flippers Capital and the future vision of Black Book Investments.

The Journey to Black Book Investments

The founder of Black Book Investments started working at a startup before experimenting with blogging. While blogging did not bring immediate financial success, it helped develop essential skills in building websites and writing content. This experience eventually led to the first successful venture of buying and selling online businesses. The founder emphasized the importance of learning from scams and focusing on evergreen niches when purchasing businesses.

Investing with Empire Flippers Capital

The podcast also discussed working with Empire Flippers Capital, a fractional investing platform that bridges the gap between investors and experienced operators. The founder shared an example of one deal where a website's income doubled in just six to eight months by implementing on-page SEO, technical SEO, and other improvements. This success story highlights the potential of investing in online businesses through platforms like Empire Flippers Capital.

Blackbook's One-on-One and Group Investment Strategies

Black Book Investments works with investors through one-on-one or group buys, helping them find the right business to invest in. They handle the entire deal process, including negotiation, escrow, and business transfer. Black Book charges a 10% finder's fee and provides monthly management services for a retainer starting at $1,500 per month.

Investing in Online Businesses: Risks and Rewards

The podcast also touched on the historical return on investment (ROI) provided by Black Book Investments, ranging from 20% to 30% annually over the past seven to eight years. First, however, it is essential to understand the risks associated with investing in websites, such as Google updates and Amazon commission cuts. Despite this asset class's high-risk, high-reward nature, the founder envisions Black Book Investments becoming a New Age media company owning multiple high-value brands.

Conclusion

Investing in online businesses offers a unique opportunity for investors to tap into the growing digital market. Black Book Investments provides a platform for investors to invest in a diverse range of online businesses while benefiting from their expertise in managing and growing these ventures. As the digital landscape continues to evolve, investors looking to participate in and capitalize on the growth of online businesses should consider exploring opportunities with companies like Black Book Investments.

Disclaimer: The content presented on the Invest and Scale podcast website is for informational purposes only and should not be considered legal or financial advice. The hosts and guests of the show are not attorneys or financial advisors and do not provide legal or financial advice. The information provided on this website is not intended to create an attorney-client or advisor-client relationship and should not be relied upon as legal or financial advice. Please consult with a licensed attorney or financial advisor in your jurisdiction for legal or financial advice specific to your situation.

The episode EP25 Investing in Online Businesses: A Glimpse into the Journey and Vision of Black Book Investments from the podcast Invest and Scale has a duration of 49:28. It was first published 01 May 15:27. The cover art and the content belong to their respective owners.

More episodes from Invest and Scale

EP26 Dog Training Franchise Acquisition in Austin Texas with Chirag Shah

Welcome to the I&S podcast, where we delve into the world of business acquisitions, entrepreneurship, and personal development. In this episode our host Gabriel Murillo engages in a conversation with Chirag Shah, owner of Sit Means Sit, a dog training franchise in Austin. Chirag shares insights into his business acquisition journey, the emotional and practical challenges of staff management, and his strategies for scaling and improving his business's sales processes.

From the highs of increasing his close rate to the lows of dealing with staffing challenges, Chirag's experiences provide valuable lessons for any business owner or entrepreneur. Tune in as we explore the rollercoaster ride of owning and growing a business, and the personal growth that comes with it.

00:00 Collar used for attention in dog training.

05:52 Affordable and well-functioning business met expectations.

09:04 Reviewed numerous deals, submitted LOIs, contracted 2.

11:13 Discussing emotional and financial factors in business purchasing.

15:46 Tenant turnover leads to lower income risk.

19:22 Focused on sales, growing company's revenue. Limited expansion.

22:15 Progressing in sales, aiming to scale further.

26:43 Glad you're sharing real, conversational thoughts.

27:35 Dealing with post-deal matters in business.

30:46 Doubts about leadership and decision-making still linger.

36:08 Learn the lesson, take care of sales.

39:15 Reading only when necessary; tired of self-help.

43:17 Training dogs to improve life and relationships.

47:01 Benefits of sharing with a business coach.

49:52 Embrace challenges as opportunities for personal growth.

51:15 Focused on hiring more trainers and consultants.

Primary Topic: Chirag's Business Acquisition and Operations

- Acquisition of Sit Means Sit franchise in Austin

- Interaction with brokers and VA

- Costs and seller note

- Personal reasons for the acquisition

- Business performance and challenges

- Sales improvement and focus on scaling

- Staffing issues and team changes

- Emotional and practical challenges of staff turnover

- Impact of team changes on leadership

- Chirag's resolve and determination

- Chirag's management and personal routine

- Morning routine, exercise, and meditation

- Emotional fulfillment and impact on sales

- Resolving to move out of sales

Business Growth and Sales Strategies

- Fulfillment from dog training and business performance

- Increase in reviews and reputation

- Impact of dog training on people's lives

- Analogies of training a business and acquiring leadership

- Seeking business coaching and mentorship

- Different coaching types and strategic planning

- Experiences and benefits of coaching

Personal and Professional Development

- Self-growth and leadership

- Importance of challenging experiences

- Plans to hire and grow the business

- Rapid changes and personal development

- Property management and business revenue

- Active involvement in real estate

- Strategies for business growth and efficiency

- Deal acquisition process and emotional challenges

- Timeframe and motivation for the acquisition

- Emotional challenges and comparison with property investment

EP30 From Corporate Layoff to Business Acquisition of a Trailer Dealerships Texas with Shane Ehrsam

In this episode of I&S, our host Gabriel Murillo sits down with guest Shane, the new owner of North Texas Trailers, a multi-location trailer dealership. Shane shares the inspiring story of his journey from corporate America to acquisition entrepreneurship, discussing the challenges, fears, and motivations that led him to take the leap into business ownership. From navigating the complexities of dealership and manufacturer relationships to his ambitious plans for business expansion, Shane's insights into sales processes, employee experience, and potential acquisitions provide a compelling narrative of growth, determination, and the pursuit of success. Join us as we delve into Shane's fascinating entrepreneurial odyssey and gain valuable perspectives on the trials and triumphs of small business ownership.

00:00 High stress and busy job leads to entrepreneurship.

09:51 Challenges of career loyalty and relationship changes.

13:32 Overcoming job loss, seeking entrepreneurial opportunities.

16:24 Father encourages using 401k, take big risk.

20:08 North Texas Trailers: a trailer dealership summary.

24:41 Car dealerships have manufacturer partnerships, trailer dealerships do not.

26:17 Buying and reselling from manufacturers raises challenges.

29:52 Uncertain about future, considering business expansion options.

33:15 Generate leads, convert to sales, improve processes.

37:02 Outsource, focus on business, and sales strategy.

39:44 Sell to anyone, focusing on government entities.

44:29 Explore all deal-making options to benefit both.

46:44 Evaluate risk versus reward for pursuing entrepreneurial path.

- Shane's Journey to Business Ownership

- Influence of Shane's Father's Small Business Ownership

- Transition from Corporate Leadership Roles to Entrepreneurship

- Decision to Pursue Business Ownership After Being Laid Off

- The Trailer Dealership Business

- Operations and Relationships Between Dealerships and Manufacturers

- Vision for Expansion and Growth in the Trailer Dealership Business

- Initiatives to Improve Sales Processes and Employee Experience

- Business Development and Marketing Strategies

- Investing in New CRM and Customer Communication Platforms

- Focus on Online Sales and Digital Marketing

- Exploring Paid Advertising and Metrics Evaluation

- Business Acquisitions and Deal-Making Strategies

- Criteria for Acquiring New Businesses

- Potential Acquisitions and Property Purchases

- The Importance of Creative Deal-Making Strategies and Seller Incentives

- Reflections on Entrepreneurship and Business Ownership

- Emotions, Anxieties, and Fears in Decision-Making

- Realization of the Lack of Security in Long-Term Employment

- Rewards and Stress of Business Ownership

- Future Plans and Acknowledgement of Potential Opportunities

- Anticipation for Future Connections and Growth

- Conclusion of the Conversation with Mutual Appreciation

EP29 Lessons from the Front Line: Buying Businesses in Guatemala with Diego Cerezo

Welcome to Episode 29 of the Invest & Scale, "Masters of the Deal: Acquisition Strategies and Growth Insights." Today's episode features a gripping dialogue with Diego Cerezo, an entrepreneur who transitioned from running a Guatemalan craft brewery to mastering the art of business acquisitions in Latin America.

Diego tells us about the influences that triggered his shift towards acquiring businesses and shares his personal experiences navigating the unique challenges of Latin America's acquisition landscape. We’ll also explore creative financing arrangements, the significance of partnerships and mentorship, and the critical role of strategy in managing a diverse portfolio of companies.

Get ready to dive into a world where deal-making meets strategic foresight, and introspection becomes a cornerstone of success in business acquisitions. Whether you’re a budding entrepreneur or an experienced professional, this episode is brimming with valuable takeaways.

Now, let's roll the intro music and get ready for an enlightening session on "Investment Scale" with Diego Cerezo. Stay tuned!

00:00 Diego Cerezo shares journey of buying business.

05:43 Dad's guidance made the first acquisition successful.

07:41 Latin American business culture differs from the US.

11:17 Tough negotiations led to creative payment terms.

15:35 Discipline and commitment lead to business rewards.

18:50 Delegate operations, focus on strategy, oversee projects.

20:28 Admitting humility unlocks greatness in building teams.

24:38 Podcast discusses different ways to acquire businesses.

27:20 Guatemala partner sets up meetings, revenue share.

30:51 Innovative approach to niche ecommerce advertising strategy.

34:43 Considering acquisitions beyond Guatemala: b-to-b, low capex.

37:37 Tips for business: introspection, focus on cash flow, collaboration.

41:10 Excitement and possibility lead to big dreams.

- Entrepreneurial shift from craft brewery to acquisitions.

- Influence of personal and educational background on decision to enter acquisitions.

- Comparison to US acquisition culture.

- Challenges of a more relationship-driven market.

- Diego's personalized approach to sourcing deals.

- The intensive 15-month journey to acquire a tech company.

- Creative revenue-share agreements and company acquisition options.

- Learning resources for acquisition skills.

- Essential tips for first major acquisitions.

- Importance of cash management with profit first methodology.

- Focus on long-term growth and the strategic role.

- The significance of mentors and partnerships.

- Benefits of collaboration for business success.

- Diego's commitment to investing in education and tourism.

- Anticipation of future in-person meetings and continued exchanges.

- Diego oversees strategy for multiple companies with varied industries.

- Long-term investment vision for portfolio businesses.

- Acquiring businesses to facilitate regional growth.

- New methods beyond traditional SBA loans for business acquisitions.

- Real-life example of a revenue-sharing deal with an option for investment or income.

Diego Cerezo's Linkedin:

https://www.linkedin.com/in/diegocerezo/?originalSubdomain=gt

EP 28 Beyond Corporate: The Strategic Acquisition of a Marketing Digital Agency

Welcome to the I&S podcast, where we delve into the world of entrepreneurship, business acquisition, and personal development. In today's episode titled "Oscar Jaramillo," our host Gabriel Murillo welcomes the inspiring entrepreneur and business owner, Oscar Jaramillo. Oscar shares his journey from a corporate career at Nestle Waters North America to becoming a successful business acquirer. He takes us through the proactive and meticulous process of acquiring a suitable business, emphasizing the impact of personal skills, the importance of human capital, and the need for a balanced approach to entrepreneurship. Join us as we explore Oscar's insights, personal challenges, and the unexpected surprises of business ownership, all while gaining valuable advice and lessons learned from his inspiring entrepreneurial journey.

EP 27 The Agency Model vs. Ecommerce Companies and over 5 acquisitions

00:01:34 First acquisition at 22: a restaurant mistake.

00:06:00 Understanding buyer psychology is crucial for success. Empathy is a CEO's biggest tool. Acquisition mistakes can be costly and avoidable.

00:10:32 Cut salespeople, focus on strengths, avoid management.

00:14:58 Switching companies, need familiar people; limit reports. Avoid unnecessary meetings, prioritize scaling. Care for team individually but not in meetings. Working on a 100 million EBITDA opportunity. Acquisition potential in 100-200 million range. It's a game; changing lives; exciting.

00:19:09 Thinking win-win, building wealth for all.

00:23:10 Ecommerce companies struggle with cash flow, unlike agencies.

00:26:30 Avoiding bosses, expanding outdoor brands, supporting struggling founders.

00:28:51 Synergy is crucial, bankruptcies are imminent.

00:35:29 No money down deals, money out of pocket, misconceptions, contracts, trust.

00:38:20 Busy meetings, focused on valuable content.

00:40:42 "Great people and collaboration bring success."

Every Podcast » Invest and Scale » EP25 Investing in Online Businesses: A Glimpse into the Journey and Vision of Black Book Investments