How do you make money even in a recession?

The BRRT Method...

This is my philosophy to grow your cashflow and assets despite what is happening in the world around us.

I'm calling it the BRRT Method.

Buy - Buy businesses that cashflow
Resist - In recession-resistant sectors
Raise - With an ability to raise their prices
Tech - And add technology to their offerings

Here's an example of how you can earn based off a deal I just did.

1) Buy - but make it cashflow

The goal: buy an inexpensive business that is under performing, but profitable, and rehab it.

You make sure the purchase price & cashflow (including legal etc) can cover your expenses to fix it up.

You use OPM (seller financing or SBA) to buy.

Idea in action:

I see an online education business that I guess is making a $100k rev & $25k profit + a year, but neglected.

I reach out to the owner, who had been doing this for years and he's tired.

I ask if he'd be willing to sell for right price. I buy for: $75,000.

2) Resist - Invest in recession resistant sectors

You look for businesses that weather storms. Search their historical sector returns in downturns and go after those that GROW when others die.

Here's a list of 130 businesses I like to invest in:
contrarianthinking.co/130-boring-businesses-i-love-to-invest-in/

Idea in action:

The business I bought focuses on financial freedom and protection. That type of business does well in downturns, as do many education businesses.

When people get laid off they need new skills. We fill that need.

3) Raise - your prices

Most businesses forget to raise prices with inflation.
Some small businesses NEVER raise prices.

Just like in real estate you invest with the goal of raising prices for underpriced services.

Idea in action:

This online business I bought was charging $29 a month for access to a library of content.

I thought that content was worth more like $99 a month or $1000 a year. I re-designed the materials, fixed the funnels and increased prices.

3% churn so far.

4) Tech – Add technology to their offerings

Small businesses are notoriously NOT tech-savvy.

36% don’t have a website
89% still use a fax machine in some way (WTF?)
40% don’t have a social media strategy

Idea in action:

In this tiny little business, I made 4 changes from a technology standpoint.

- newsletter in @Mailchimp that sells their product
- @deel for them to pay international contractors easily
- email funnels
- instagram w/ testimonials

Not rocket science.

@Mailchimp @deel In summary:
Buy or invest in businesses that are
Recession resistant
Raise their prices
Tech add it to the business

Sometimes keeping it simple isn't stupid.