Living in the Upside Down

Vertical Integration is when you acquire (or become) a supplier or customer of your current business.

It is growth via supply chain.

And the most common way that a small business Vertically Integrates is by buying a building rather than leasing space.

You can turn one of your biggest Operation Expenditures (OpEx) into a profit center that starts building equity. You may even become cashflow-positive if you finance it right.

In fact, it’s very common for long-time business tenants to buy the building they lease.

Owners who do this will often keep the building when they sell their business, having a stable tenant already in place.

Not only can you capture short-term profit, but you can set up long-term retirement cashflow long after you’re out of the day-to-day of the business.

Is it time to buy?

This is from Trail 10 of Profit Hiker: 11 Trails to gain lasting elevation in your business. Find the book right here and the program over there.