WHY is Balloon Distractions worth 800K right now? #1. A multi office medical practice, a cleaning company, a gas station, a car dealership, an HVAC installer, a fitness company...... ....these are all well known business models that are bought and sold every single day of the week. We have many comparable valuations on these common businesses. Buying a business that is known is just like a matter of EBIDTA (net profit) and gross sales. But what about a company that is FIRST in their market? Would you invest in Ray Kroc as he opened his 3rd McDonalds franchise back in the early 1960s? Isnt McDonalds more valuable than all the imitators that followed? The Golden Arches got there FIRST and did it RIGHT. How about the first company to create an inexpensive home computer? Or Colonel Sanders when he opened the first KFC when he was 65 years old! There is a huge intangible value in a business that is the FIRST and the BEST in their respective niche. My nearest competitor is tiny, and only in one market... we are the 1,000 pound gorilla in our niche. #2. Ive invested in an online scheduler and online training that can help us get to 1,000 bookings per week with no major improvements. How much is that technology worth? Is it possible to scale and sell that technology to other businesses? Our technology has infinite scalability over time. We could do this worldwide in less than a decade. #3. We do need not a ton of capital to expand into 200 markets. Any traditional business would need a couple million $$ to take their idea into 30 markets. We did it on a shoe string, a prayer and LOTS of hustle. We can open a new market for less than $1,500 in terms of travel, hotel, gas and recruitment ads. We have no RENT costs, no equipment than can get stolen or broken down, all our balloon artists buy their own latex !! -------------------------------------------------------------------- For these reasons Im not budging a single millimeter off an 800K valuation. If you think Im being a stubborn son of a gun youre correct. I dont know that Im the Ray Kroc of balloons but Ive been called far worse. No one thought this would work 10 years ago and we grew it to thirty freakin markets. Ill find a way to get it to 200 markets, just watch. We can scale this REALLY fast with 60K in funding and some needed fine tuning to our operations side. Whos in? -Ben Alexander 813. 391. 3895
Posted on: Fri, 15 Nov 2013 16:12:10 +0000