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- Herausgeber: John Wiley & Sons
- Kategorie: Fachliteratur
- Sprache: Englisch
**Finalist of the Entrepreneurship and Small Business Book of the Year at the Australian Business Book Awards 2022** What does it take to turn an underperforming business into roaring success? Discover how one of Australia's most successful hotel publicans turned his $100 backyard beer garden into a $100 million pub empire. In his straightforward and down-to-earth Australian style, Stephen J. Hunt outlines the blueprint and frameworks he uses to turn failing and under-performing business into multi-million-dollar successes. Hunt draws on his own dishwasher-to-pub-mogul story to provide readers with an actionable roadmap to formulating an idea, raising money, recruiting employees, fending off competitors, and, eventually, cashing out. You'll learn how to: * turn your passion into profit and assess the right business opportunities for you * rebrand (on a budget) to exponentially increase the value of a business * develop a bullet-proof team culture that creates loyalty for life * negotiate the best price when buying or selling a business * pitch to investors using language they understand and value. Whether you're buying, selling or reinvigorating an online or bricks-and-mortar business, or simply looking to improve your long-term business and career goals, this step-by-step guide shows you how to use simple principles, systems and procedures to quickly (and easily) unlock vast value from any business.
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Seitenzahl: 318
Veröffentlichungsjahr: 2022
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Table of Contents
Cover
Title Page
Copyright
Dedication
Acknowledgements
Introduction
Hunt by name, hunt by nature
How I got started
The scent of a deal
The $100 backyard bar
What's this book about?
Who is this book for?
What problem does this book solve?
Part I: FIND
CHAPTER 1: Find your passion
How not to buy a pub
How to find your passion
CHAPTER 2: Find your feet
Don't let them in
'Don't let them in' extends to corporate customers too
Don't just know the rules, set the rules
How a faulty constitution nearly cost me my business
Not everyone has your best interests at heart
Choose your investors carefully
Trust, but check
What's your blind spot?
How to find your blind spot
Act in haste, repent at leisure
Find the time to learn
Play and learn
Keep learning
CHAPTER 3: Find your values
Do the right thing
Karma comes back
What goes around comes around
Want free marketing? Find your community
Match your purpose to the concept
Put yourself in the right room
Give to get
How to network
What not to do when networking
Get on the stage
CHAPTER 4: Find your focus
Do the little things right
Success has its origin in decades past
A lightbulb moment
Why do I care about lightbulbs?
What we pay attention to
How we make our pubs so profitable
Everyone's welcome
Treat everyone with respect — except rock stars
Mind over matter
The benefits of meditation
The 20/30 rule
Mechanics of the mind
Help staff help themselves
Part II: BUILD
CHAPTER 5: Build your confidence
If you don't ask, you don't get
When it rains, it pours (beers)
Like numbers? Here's a few
Structuring the deal and sourcing the funds
Taking time out
How we grew the pub fund from $400 000 to $100 million
When you're on a good thing, stick to it
Finding investors was no longer a problem
Our secret weapon: the multi-factor model (MFM)
CHAPTER 6: Build your team
How to build a loyal team
Hire slow, fire fast
Don't hire rock stars
Check references
How to keep staff
Sharing the success
Developing an intrapreneurial culture
When ability doesn't match ambition
Be slow to criticise and quick to praise
Reinvesting in your team
CHAPTER 7: Build your resilience
How to manage bad days
No mud, no lotus
Don't annoy the authorities
Supporting your team in a crisis
How any small-business owner can fight for what's right
CHAPTER 8: Build your knowledge
You never know who you're dealing with
What it says 'on the box' is not necessarily what's 'in the box'
What does 'doing due diligence' actually mean?
What you need before buying any bricks and mortar business
Look ahead
Waste not, want not
Part III: SELL
CHAPTER 9: Sell your vision
How to get a better valuation
Profit versus potential
You must reinvest in your business
Pre-mortems can help prevent failure
The value of real-time reports and why they matter
Making cents of the profit and loss
Build a relationship with your banker
How credit departments work (and why it takes forever to get a loan approved)
Dashboards rule
CHAPTER 10: Sell your story
How to create an IM that impresses investors
Go big or go home
Additional documents your investors may want to see
CHAPTER 11: Sell your value
How to choose the right bank
How to choose a good accountant
Crowdfunding: Leveraging your community to raise money
CHAPTER 12: Sell your brand
What is a rebrand?
How do you do a rebrand?
The 4-step plan for rebranding your business
How do you measure the success of a rebrand?
When should you do a rebrand?
What will a rebrand cost?
How long should a rebrand take?
Promotions that have worked for us
Rebranding involves meetings — lots of meetings
Conclusion
Let's talk!
Index
End User License Agreement
Guide
Cover
Table of Contents
Title Page
Copyright
Dedication
Acknowledgements
Introduction
Begin Reading
Conclusion
Let's talk!
Index
End User License Agreement
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FIND BUILD SELL
HOW I TURNED A $100 BACKYARD BAR INTO A $100 MILLION PUB EMPIRE
STEPHEN J. HUNT
First published in 2022 by John Wiley & Sons Australia, Ltd
42 McDougall St, Milton Qld 4064Office also in Melbourne
© John Wiley & Sons Australia, Ltd 2022
The moral rights of the author have been asserted
ISBN: 978-0-730-39986-5
All rights reserved. Except as permitted under the Australian Copyright Act 1968 (for example, a fair dealing for the purposes of study, research, criticism or review), no part of this book may be reproduced, stored in a retrieval system, communicated or transmitted in any form or by any means without prior written permission. All inquiries should be made to the publisher at the address above.
Cover image: © MilenaKatzer/Getty ImagesCover design by Wiley
DisclaimerThe material in this publication is of the nature of general comment only, and does not represent professional advice. It is not intended to provide specific guidance for particular circumstances and it should not be relied on as the basis for any decision to take action or not take action on any matter which it covers. Readers should obtain professional advice where appropriate, before making any such decision. To the maximum extent permitted by law, the author and publisher disclaim all responsibility and liability to any person, arising directly or indirectly from any person taking or not taking action based on the information in this publication.
Some events, people and timeframes have been condensed, merged or truncated to keep the story rolling along.
This book is dedicated to my wife Fidelma and my children Holly, Suzie, Dermot, Aidan and Rory.
Acknowledgements
Writing this book has been a huge endeavour and one that could not have been possible without the support of my family and wider team. It's a representation of my journey through life (so far) and an opportunity to share the insights and experiences I have gleaned from that journey. I would like to shine a light on the many people who have walked this path with me, who have helped me and contributed a chapter of what has become the story of my life. I am grateful to you all.
Firstly, to my wife Fidelma and my children — Holly, Suzie, Dermot, Aidan and Rory — for your ongoing and unconditional love and support. I could not do what I do without your encouragement. You make it all worthwhile. (And to my two beautiful dogs, Dusty and Snoop, for helping me remember that at heart, I am a Hunter.)
To my mum Suzanne, my dad Peter and my siblings (David, Joanne, Phillip and Elizabeth) for the love and support you provided to me growing up, and a big thanks to my eldest brother, Dave, for being my rock and a constant voice of reason and sensibility.
To the Backyard Beer Tender: my childhood buddies, all legends in your own way, and in your own lunchtimes. You're a huge part of my life, then and now, as are your families. Thank you. In no particular order:
James Boyle
Daniel Wheeler
Andrew Stevens
Stephen Duggan
Paul Hester
Ben Taylor
Neil Coyle
Jon Farrell
Gavin Yu
Grant Lyndon
Nick Russell
Simon Loughery
David Sutton
Andrew Cairns
Jane Sandral
Katie Chad
Belinda Driver
Bridie O'Sullivan
Sharnie Lofgren
Emma Hales
Penny Zatmury
Louise Malone
Michelle Jeffers
Libby Ellis
Lucinda Maloney
Jane Collins
Catherine Hamilton
If I have forgotten anyone, I apologise.
To the Hunt Hospitality International (HHI) team: true champions in every way, for having my back and for your loyalty. You are my extended family. I hope I do as much for you as you have done for me:
Kris Gladwell
Jason Archer
Ricci-lee Wheeler
Corey Park and Hannah Purdy
Tony and Cat Jackson
Corey Baker
Wendy Berlin
Terri Jones
Jeremy Cusack
My chief advisors:
Cath Antaw
Andrew Wennerbom
Alex Thompson
Simon Rutherford
Marin Kennedy
To my investors and business partners past and present for your support. In no particular order:
Brent and Katia Penfold
Tim Wearne
Michael Mitrovits
Annette Pulbrook
Kathy Richardson
John Curnow
Graeme Cunningham
Gus Gilkison
Nick Wormald
A special thank you to Greg Maitland for being my valued mentor; what you don't know about putting a deal together isn't worth knowing. Thank you.
To the Bayfield family, especially Wayne. You were great mentors who really taught me the importance of the community/pub relationship.
To the team at Westpac bank, Jeff Hurdis, Michelle Smith and Luba Finch, for being such honest and helpful bankers.
To James Brindley from Lion, Peter Filipovic from CUB, Michael Ritoli and Fred Jones from CUB Special Beverage, the team at LMG, especially Aidan Desmond and Amanda Williams for being such great supporters, the Australian Hotels Association (AHA) and in particular John Thorpe (RIP), Scott Leach, John Wheelan, John Green, Sean Morrissey and Phillip Ryan.
To the Hamilton Chamber of Commerce, Hunter Business Chamber and the Bar and Nightclub Show Las Vegas for your support.
To all the sporting teams that we support, and who support us:
The Wildfires (Hunter Rugby)
The Maitland Blacks Rugby Club
The Wahroonga Tigers
The Hornsby Lions
The Bogan Bulls (Nyngan).
And lastly, to Bernadette Schwerdt, for the time, effort and support you have put into helping bring my business story to life. Over countless conversations, hundreds of emails and thousands of words, you have helped me distil a rollicking and rowdy life into a book that I hope will be of value to many others. From when we first met, I knew you were the right person to help me tell my story, and my trust and instinct has been rewarded. Thank you for guiding me through this journey and for providing me with an outstanding learning experience. This book would not be the success it is without you.
And finally, a sincere and heartfelt thank you to every customer who has walked into one of our pubs. You are the reason we are here.
Introduction
The greater the difficulty, the more glory in surmounting it.
Epictetus
My name is Hunt. Stephen Hunt. Clearly, my ancestors were hunters, and so am I. My name reflects perfectly what I do — so much so, I bought a dog, a German shorthaired pointer (Snoop, on the left), in honour of that ancestry. He is one of the best hunting dogs you can find. I bought him because he reminds me of who I am, and what I was destined to be.
Snoop, on the left, the best hunting dog you can find.
In short, I am a Hunter. I track down good pubs that have the potential to be great. I round up the team who can help me restore them to their former glory. I sniff out the best deals to maximise efficiencies. I then deliver them to my investors, and do it all again. I'll stop with the dog analogy … you get the drift.
Hunt by name, hunt by nature
If you believe in the science of epigenetics, I am aptly named. Now epigenetics may sound like a depilatory tool you'd see for sale on The Shopping Channel, but it's the study of how behaviours and environment affect the way our genes work. Interestingly, a study discovered that 30 per cent of white men were more likely to match their career to their surname. (This is why we see Mr McBurney become a fire chief, Mr Brain become a neurosurgeon or Mr Soo Yoo a lawyer — all of whom are real people, by the way, according to the website ‘boredpanda'.)
Is that luck, destiny, nature, nurture?
I don't know, and it doesn't matter. Whatever it is, I consider myself lucky to be The Pub Hunter. I've found myself here, at 48 years old, walking side by side with my wife and partner in life, Fidelma, our five children and a $100 million pub portfolio that continues to grow daily, delivering outstanding returns for my investors and life-changing opportunities for my employees and franchisees. I couldn't be happier with the way life turned out, but it wasn't all beer and skittles when I started out.
How I got started
I was a ginger-haired, fat-fingered, freckled-faced kid from suburban Sydney. I was also left-handed and had one kidney. What I did have going for me was that I was good with numbers and good with people. Those qualities have served me well. I now run Hunt Hospitality, a conglomerate that owns seven pubs up and down the east coast of Australia. We employ 350 staff and have won some of the most prestigious awards in the industry.
I started out washing dishes in pubs, and graduated to running them and, eventually, buying them. My modus operandi was simple: I'd choose poorly performing pubs, renovate, revalue and resell them for a higher price, repay the investors with an outstanding rate of return, and then do it all again. I got so good at buying pubs that friends, and then friends of friends, would say, ‘Steve, can we be a part of this? Can I get in on the deal?', and I'd say, ‘Sure', so I started to take on sophisticated, high-net-worth investors. I made them so much money, I became a private equity fund manager and started an investment fund, called The SJH Pub Fund. Top marks for creativity there, but it is what it is: a fund that owns, operates and manages a portfolio of successful pubs. I launched it in 2015 and it's been growing at a rate of 15.42 per cent with a cash return of 12.18 per cent per year since it started.
I'm not a trained accountant, but to manage such a complex investment portfolio, I had to become very, very good at reading numbers. And I did. I have my family to thank for that. My dad is an accountant, as are three of my four siblings, so I've been surrounded by numbers all my life. It wasn't unusual to talk about financial statements over breakfast, lines of credit over lunch and debt funding over dinner. My parents were ultra-conservative people, and they would have loved for me to become an accountant, but I had different plans. I took my passion for people and pubs and leveraged those talents to make a profit. I have found my strengths and made them work for me. When you find what you love and can make a buck from it, you'll never ‘work' another day in your life.
The scent of a deal
I got my first ‘scent' of a deal when I was four years old and was given a bucket of Lego for my birthday. I was playing with Luke, my next-door neighbour, and he said, ‘Can I buy that bucket of Lego off you?' ‘How much for?' I asked. ‘Three dollars?' he said. This was a fortune for a little kid like me, and I fantasised about all the lollies I could buy with this unexpected windfall. I was about to say ‘Sold!', when my mum pulled me aside and whispered, ‘Stephen, think about it. You could sell the bucket to him for three dollars, or you could sell him the individual bricks for 50 cents a brick, and make 20 dollars. What would you prefer?' ‘Can I charge him 70 cents a brick?' My entrepreneurial chops were on display, even then. ‘That would be greedy, Stephen,' she said. ‘And don't forget, Luke could go to the shops and buy them for less than that.'
In that moment, I discovered the principles of pricing structures and market forces. I owe my mother a great debt for teaching me, at such a young age, the essentials of entrepreneurship. I sealed the deal with Luke, headed down to the shops and filled my pockets with cobblers and chocolate bullets.
My father taught me my second lesson. When I was 10, we took a family trip to Hong Kong. We lined up at the money exchange counter to buy some Hong Kong currency. I watched my dad hand over the money to buy the notes, and a moment before the money changed hands, the exchange rate went up, and in the blink of an eye, we were given $200 more than if we had bought it a few seconds earlier. In that moment, I learned that timing is everything: a critical element when buying and selling a business.
The $100 backyard bar
I have to be honest. I didn't set out to become a publican. Growing up in a middle-class suburban home with two rugby-loving brothers (and two equally sporty sisters), I was a sports-mad jock with a grand goal to play rugby for Australia. I did make several representative rugby union and league teams, represented my school in 11 different sports and was captain of the swimming team. Unfortunately, however, my talent did not quite match my ambitions. As a result, I had to find another career. But as a 17 year old, fresh out of school, I had no idea what I wanted to do. I was too busy mucking around with my mates, playing footy, drinking beer and having fun. Which is kind of how my business began. As they say, from little things big things grow. My pub empire started as a very small operation: it started in my backyard.
When I was 17 years old, my dad bought a massive BBQ and installed it down the back of the yard. It was a concrete monstrosity with a built-in chimney, removeable grills, cast-iron hotplates and more. He decked out the area with second-hand armchairs, eskies, a tarpaulin tent to keep out the rain, a tape deck and speakers so we could listen to music, and a string of party lights dripping off the trees so we didn't trip over in the dark.
He must have wanted us out of the house. It worked.
I spent most of my weekends down there, hanging out with my high-school buddies. I'd invite them all over after the footy, we'd get a few girls from school to come along and before you knew it, every teenager in the street would be popping over to see what the noise was all about. Everyone was welcome — even the teachers. It wasn't unusual on some weekends to have 100+ people down the back of the yard, partying away, with me at the helm. My parties got so popular, I rallied my mates to help me manage the logistics. One took care of the food, the other bought the grog, another manned the gate to deter any undesirables from dropping in. We were a well-oiled team.
One night we ran short of beers so my mate said, ‘Just charge them $2 for the beer you've got left in the esky' — so I did. I took that money, went down to the pub, bought more beers, came back, sold those and made $100! I was stoked. Not only had I made a few bucks, I had enabled the party to carry on late into the night. I looked around at the faces of my friends laughing, joking, dancing, drinking: I could see the joy they were experiencing, feel the happiness they were exuding, and it was exhilarating. I had brought together this disparate group of people from many walks of life, and they were all having a great time because of me. I was having a ball too, but what I really enjoyed was watching other people have a good time. In that moment, my mate Paul turned to me and he said, ‘Steve, I reckon you should do this for a living'.
‘So do I, mate. So do I.'
And now I do.
This is my story.
What's this book about?
Success leaves clues. I've written this book so you can stand on the shoulders of those who have gone before and fast track your success; so you can minimise errors, maximise opportunities and get cracking on your business idea as soon as possible. When I set out on this journey 30 years ago, I had no idea what I was doing or where it would lead. I do now and it's been a helluva ride. This book is the step-by-step guide to how I did it — a blueprint of sorts — so that you have the tools you need to find, build and sell the business of your dreams. Rip in.
Find
What do you love? What are you good at? What does the market want? ‘Find' the intersection of these three critical questions and you've got the foundations of a successful business. ‘Find' is about identifying the right business idea for you, be it a new or existing entity, and finding the right team of people who can help you bring that idea to life. It's about finding the principles and values underpinning your entrepreneurial vision that will guide your very decision. It's about finding your strengths (and your weaknesses) so you can do more of what you love, and less of what you don't. It's about finding time to focus on what's important, and what's not, and knowing how to tell the difference. It's about finding the tools to curb anxiety, conquer worry and build resilience so you can stay the distance.
Build
Do you run the business, or does it run you? Are you working in it, or on it? ‘Build' is about taking the business you've bought (or created) and applying robust systems, procedures and processes so that you can automate the business without duplicating effort or reinventing the wheel. It's about how to ‘build' your confidence, manage risk and create an intrapreneurial culture that answers the fundamental questions of ‘Why are you in business?' ‘What do you stand for?' and ‘Who do you want to be?' It's about building systems that minimise conflict, improve productivity and maximise profits.
Sell
Do you have an exit strategy for the business? Do you want to sell it, stay with it or list it? What's the end goal? ‘Sell' is about building upon what you've created and maximising opportunities. It's about how to ‘sell' yourself, your vision and your story to attract investors and partners who can help you realise your ambitions. It's about how to evaluate investment opportunities, source venture capital, negotiate the deal, prepare the business plan, pitch to investors and choose the right advisors.
Who is this book for?
You may not want to own a pub, but you can learn a lot of lessons from someone like me who has. Why? Because I live in the real world of business. I live in a world where my business lives and dies by the sword of selling a service at a profit that sustains me, my staff and my investors. If I don't sell something, to someone, today and every day, I fail. It's as simple as that. Unlike those in the tech sector and start-up land (and good luck to them, by the way), I don't have the luxury of telling investors, ‘Invest in this obscure, untested, untried software that one day, somehow, will make you an absolute fortune. We don't have any sales, customers, traction, history or profit yet, but trust me, one day, we will!'
No. That's not the world I live in, and chances are, it's not the world you live in either. You're a small-business owner, working hard to chase your dream and turn your idea into a profitable enterprise. You get up early, stay back late, work like crazy in between, get home, say ‘hi' to your family, collapse and then get up and do it all again the next day. In short, you're exhausted, you're overwhelmed and you want to do things differently.
You want to enjoy what you do, grow the business without going into debt, make it more profitable, do more with less and get smarter about the way you manage yourself, your team, your energy, your time and your money. You want to attract more, better customers who can afford what you offer: who love what you do and aren't afraid to tell the world about it.
You don't want to be a billionaire, or maybe even a millionaire. You just want to have a thriving business that lets you do what you want to do, that pays you for a job well done; you want a business that runs without needing you to do everything; that has systems and procedures in place that ensure you know what's going on even when you're not there; that runs like clockwork so you can get on with working on the business, instead of in the business; that lets you get back to being with your family, taking a holiday now and then and sleeping soundly at night — without waking at 3 am worrying about cash flow, deal flow or work flow.
What problem does this book solve?
I've been running pubs since I was 18 and I've learned a few things along the way, and how to build a multimillion-dollar, multi-venue corporation is one of them. Through trial and error, I've discovered a blueprint for business success, and the best part is, my blueprint works for any business. Whether you're a hairdresser, stockbroker, fashion designer or car dealer, this system will work for you too.
If you live in the real world, like I do, and you'd like to learn how you can turn your passion into profit, do what you love and get paid handsomely to do so (so that you never have to work in a job you hate because the work you do is what you were born to do), this is the book for you.
There's never been a better time to make a change. If ever you were going to do something differently, the time is now. Don't waste another minute doing something you don't want to do, for a boss or company you neither like nor respect, for a wage or conditions that don't reflect your true worth, talent and potential. Don't be an armchair critic. Get out there, throw your hat in the ring and get cracking. After all, if a left-handed, one kidney-ed, ginger-haired kid from the back blocks of Sydney can do it, so can you.
Welcome to my world. The real world. Let's get started.
Part IFIND
You've got an idea and found your passion and now you want to set up the rules of engagement for how you'll take on staff, customers and investors. So let's work out your strengths, identify your blind spots and help you develop the courage to try to step out of your comfort zone and develop strategies for mitigating the risks if you fail.
It's now time to discover the importance of finding time to focus on what matters, like being in the right room and taking time to learn and do the little things right.
Let's go!
CHAPTER 1Find your passion
The future depends on what you do today.
Gandhi
I've got seven pubs worth over $100 million. Saying it like that makes it sound like it was easy to achieve. It wasn't. It's taken me 30 years to learn the formula for how to find, build and scale a bricks and mortar business. In the early days, I made many mistakes. In fact, I made so many I nearly went bankrupt before I had even begun.
I started out making $100 at my backyard bar and gradually worked my way up, managing bars all over Sydney, London and Europe, working for some of the biggest and best names in the business. I was a sponge, absorbing everything around me, just waiting for that day when I could do it for myself and be my own boss.
My opportunity came, funnily enough, when I was sitting in a bar. What I'm about to tell you sounds like a plot from a Hollywood movie, but I can assure you that everything that happened was very real. I'm revealing the story here so that (hopefully) you can avoid repeating the rookie errors I made.
How not to buy a pub
It was 2015. I was 42. I was living in the Hunter Valley, New South Wales with my wife and children. By sheer good luck (and some good timing), I found myself with $400 000 from the lucrative sale of a Sydney residence. I had already had a few good wins under my belt from residential property (I once owned a property for six weeks and made 18 per cent on the sale), so I was feeling on top of the world and, to put it quite bluntly, thought my shit didn't stink.
As it happens, my local bar — The Rutherford, two hours north of Sydney — was up for sale. I'd spent many a night in this bar and thought, ‘Maybe this is the business opportunity I've been looking for?' It had a good vibe, a terrific location, minimal competition and great community support. After a few more days of mulling it over (and, it must be said, a few more drinks in that bar), I thought, ‘Yep! This is a winner. I'm going to buy this bar!'
The Rutherford Hotel. The bar that set the wheels in motion.
I'd been managing pubs for 20 years as a CEO and general manager, but I'd never sought investors to assist with the funding of them. This would be an entirely different endeavour. But my time was here. This was a wonderful opportunity and I knew I could make it a success.
The next day, I contacted the hotel broker who was selling the pub.
‘How much are you asking for The Rutherford on the New England Highway?' I asked.
‘$4.2 million,' he said.
‘Sounds reasonable,' I said, privately thinking I had no hope in hell of finding that much money, but I wanted to give it a red-hot crack so I went to my accountant, told her about the deal and to my surprise and delight, she said, ‘Count me in. I'll invest $400 000 right now'. Well, that was a good start, I thought.
With the help of a few other friends, I found another $200 000, so with my $400 000 from the property sale and my accountant's $400 000 contribution, I now had $1 million dollars to kick start my venture.
I went to the bank and told them what I needed to buy this bar. The first one said ‘no', and so did the second and third. The fourth one, however, said ‘yes' to my request, so now I had a total of $3.73 million. Brilliant. It was a struggle to get that bank to have faith in me, but having run many pubs in the past, they could see I knew what I was doing.
Now I just needed to raise $1 million to complete the purchase. ‘Piece of cake', I thought.
Just $1 million to go
I made a list of the top 10 people I thought would be interested (the classic three Fs: family, friends and foes). I went from one house to the next, pitching the idea to them in their kitchens and loungerooms, and guess what? All 10 of them said, ‘Yes!' They said, ‘Steve, we would love to be part of this and can't wait to get started. Just let us know when you need the $100 000, and we are in!'
‘How easy was this?' I said to myself. ‘I should have done this years ago!'
I now had the final million I needed to complete the deal. I went back to the hotel broker, signed the contract and bought the bar! Happy days. I was beyond excited. I celebrated all week with my family and mates, thrilled to be embarking on this exciting venture.
I followed up with the 10 investors to tie up the loose ends and confirm the paperwork. I sent them the information memorandum (more about information memorandums in chapter 8), which outlined the deal, the bank account details and the application forms for signing, and they all said, ‘Yeah, sure thing Steve, no problem. We're right there with you. The money's coming'.
Except the money didn't come.
I checked my account every day to see if their funds had been deposited. Nothing there. I waited another week. Still no sign. I rang them all again. For some strange reason, none of them answered their phone. I sent them an email. Still no response. I went to their home and knocked on their door. No answer. That's strange, I thought. They were so keen a week ago.
I wasn't worried. I had a few more Fs to chase up and felt confident I could come up with the funds, but those phone calls, emails and door knocks also went unanswered.
The settlement date loomed. I was still $1 million in the hole and there was no sign of any new investors coming to this party any time soon. What had seemed like an exciting adventure and simple endeavour four weeks ago had become a bit of a nightmare.
What happened to my investors?
I was worried now; worried enough to start talking to lawyers to see if I could extricate myself from this mess I had created. I asked them two key questions: can I get out of this contract without penalty, and if not, how bad will it be?
Their answers were pretty clear cut. No, and very bad. Not the answers I was hoping for.
I decided to take the personal route and rely on my charm and sincerity to see if that would work. I rang the hotel broker who sold me the bar and I said, ‘Mate, you know that money that I was going to raise to buy the bar with? Well, turns out I've fallen short as a key investor has pulled out. I don't suppose we could get an extension on the settlement?
‘Ah, I don't think so,' was his response. Not the response I was looking for. He said, ‘I recommend you have a chat with the actual owner of the bar. He may be more accommodating than me'.
I jumped in the car, drove like a mad man, barged into his office and said, ‘I really want this bar, but I just need a bit more time. Can you give me an extension?'
He said, ‘I'll think about it and get back to you'.
I waited by the phone like a love-sick teenager, desperate for his call.
He didn't call.
Another day went by. No answer. Then another day. Still no call. I was now completely stressed out, on tenterhooks, waiting for an answer. My options were looking very grim. If I can't come up with the rest of the money, I forfeit the deposit, a very hefty $420 000, and will be sued for the rest of it too — an extremely hefty $4 million.
Finally, with two days to go before settlement, the bar owner rang me and said, ‘With regards to your request to extend the time frame, I have one word for you. No'.
