Marketers' Business Trap

Ramon Van Meer shares his perspective on buying and scaling existing businesses, drawing parallels to real estate investing. He emphasizes the importance of finding businesses with untapped potential rather than those that have already been optimized.

• Business Buying Philosophy:

  • Focus on scaling (1 to 10) rather than building (0 to 1)
  • Look for businesses with good fundamentals but poor execution
  • Similar to finding "crappy houses in good neighborhoods"

• Key Criteria for Business Selection:

  • Must have product-market fit
  • Should have proven history and data
  • Avoid businesses owned by internet marketers
    • They've likely already implemented obvious optimizations
    • Limited room for growth improvements

• Growth Opportunity Indicators:

  • Lack of marketing efforts (especially paid acquisition)
  • Poor website design/platform
  • Minimal customer communication
  • No email marketing strategy
  • Absence of basic conversion optimization

• Financing Strategies:

  • Use SBA loans (up to 90% financing)
  • Negotiate seller financing
    • 60-80% cash at closing
    • Remainder as seller's note or earnout
  • Interest rates typically 5-7% for SBA loans

• Real Example (Dog Ramp Business):

  • Purchased for $300,000
  • Had clear problems to fix:
    • No Facebook ads
    • Poor website
    • No email marketing
    • No cart abandonment recovery
  • Represented perfect opportunity: good product, poor execution