Ep 215: What Successful Business Investors Have In Common That You Don’t Yet with Jaryd Krause

How would you like to actually earn money online, the easiest way possible, without stress? I know that sounds too easy, but listen because you will be surprised. Hi! I am Griffin, co-host of the BOB podcast, and today I am speaking with Jaryd Krause who is the founder of buyingonlinebusinesses.com. He is an expert in buying and growing online businesses who now also helps take people who have no online experience to buying and growing their own online businesses.

With a decade of experience, Jaryd’s strategies have generated in revenue millions of dollars for his clients. He has helped clients buy and grow online businesses over a range of niches all with less time and less stress. Specifically, we talk about why it’s so darn hard to start a business, what’s actually holding you back and how to learn to listen to your business and hear what’s its telling you what you need to do to grow it and why people who think they need to reinvent the wheel get overwhelmed and mostly fail? The dangers of using social media for advice to grow your business and why it kills progress? What successful BOB members who have replaced their income have in common and why they are winning? The importance of long-term thinking and what do you need more of; mindset versus skills? You may be surprised by this one. And why are you getting left behind if your mentor isn’t your therapist as well and so much more. So such an incredible episode you are going to love.

Before we get into the episode, I want to tell you that this podcast is not the only way we can help you for free, we have our due diligence framework 2.0 which our members have been raving about which will help you with knowing what to look out for when buying website including questions to ask the seller and everything so to get that go to free resources and there are some other epic free resources you can check out there too.

What’s up? I am Jaryd and I am stoked to have you here. Before we dive into the show, I want to remind you that for a limited time you can get one to one voice note mentoring with me to help you buy and grow your online business. I am opening up just a few slots of voice note coaching to give you one to one access to me via Coach Works. You will tell me your goals and challenges and we will work through them together. I will ask questions and I will tell you what I think and we will get you ticking boxes and achieving your online income goals. You can message me any time and I will respond within 48 hours. Right now, you can get 20% off by using the coupon code “Jaryd” and I will drop a link in the show notes so you can find out more. Until then, let’s get on with the episode.

William Griffin:

So Jaryd, super excited to have you here. I wanted to really get into the meat! We are starting a new series on our podcast talking about why buying a business is very nice compared to starting a business. So let’s get cracking into it. My first question for you is what are most people doing to earn money online? What are the fads you have seen, and what are people doing to earn money online?

Jaryd Krause:

Do you mean to start earning money online or actually earning money online?

William Griffin:

Right I mean to say that when most people think of wanting to earn money online, what they go often do usually?

Jaryd Krause:

Typically, if you think about it and everybody listening would probably be in the same boat is if our goal is to kind of replace the income and earn income online, you would do similar thing to what I did is to think that if I need to make income online I need to start an online business. That is what was my exact thoughts and that’s why I tried to start some online businesses so majority of people when they think I want to earn an income online is like I need to start online business which just couldn’t be further from the truth. It is so ingrained into us and it’s just what we have been taught through the societal conditioning really.

William Griffin:

Yeah, you are mentioning societal conditioning. I think about all the feeds that you see on Instagram, every YouTube inspirational thing is always about starting businesses always.

Jaryd Krause:

Yeah, it’s funny because you have people who create YouTube videos and podcast whatever it is like the best niches to start online businesses in in 2020 or 2030 whatever. Every year there is a new video or people do the same thing and for years like these are the top ten million dollars business ideas. The thing is that people are making money for a long time, both online and offline and we don’t need new idea to make money like there is no such thing. I don’t believe that there’s such a thing as a million dollar business idea.

The idea doesn’t make you million dollars, it’s the action, it’s the environment, it’s the people on the team, it’s so many factors and if you get one thing out of the recipe incorrect the cake doesn’t get baked very well and so it’s not the idea of yes I want to bake a cake. Like cool, that’s not going to make the cake, it’s just an idea that you want to make the cake, it’s not going to make the cake awesome and it’s not actually going to make a cake. The million dollars business come from so many other things and then you have this one big factor that’s in the ways that 90% of these businesses fail so it’s pretty funny that this content is created because people consume it because they believe, they have this perception that if they want to make an income online they need to start an online business and they need to have a really good idea or be in the right niche or whatever it is.

You know because you have bought a business and you are also in our community, and you do a lot of work with us here and you know that the niche is valuable to know and having a good niche is good but it’s not the defining factor of making income online. Yeah, I don’t know I am just blabbering on. It’s fascinating that how we are conditioned through social media, which is why I dislike social media on a personal note, to what we should do in the society if we want to make income online.

William Griffin:

Right, I feel like you have seen this and I am seeing this more and more that when we help someone buy a business and its someone like me and just like you and they have tried to start 4, 8,10 businesses in their 20s and 30s and then they are, and once they buy a business they are like Holy cow, this is way simpler than trying to start this whole thing from the scratch.

Jaryd Krause:

Oh yeah. Well, it’s already working right? You have got an income stream and it’s all there.

William Griffin:

Right, right. I came up with a metaphor the other day. Somebody was asking me why would you buy a website business or why would you buy a business instead of starting one and I came up with; do you want a house? Yeah I want a house. Are you going to go build your own house? With your own hands? The fact is that would be a very difficult thing to do versus buying a house that’s already been built, got a roof on it and everything.

Jaryd Krause:

Yeah, I agree.

William Griffin:

You mentioned this a little bit before that 90% of businesses fail, why do you think that is? Why do you think it’s difficult for most people to start a business? What are the blocks from that working?

Jaryd Krause:

It would be easy to say market conditions, lack of resources which are big, big factors but underlying that if we come back to the foundation it really depends on the person that’s starting the business and a couple of components that a person does or does not have when they are starting the business; the main one being skills and education and also a huge one probably even bigger is the mindset. And I would say if you have the equation of skill and education and then also mindset in the same like next to each other, I would say mindset is probably 80% and 20% is skills and education with 80% importance on mindset.

Now, skills and education is still damn valuable, and it’s going to get you a long way but also you can still come up against road blocks and without the right mindset. It’s like I am just going to give up. I think the biggest thing that gets in the way of people actually succeeding not just start up but in everything is the mindset and backing themselves and having the right mindset of like long term gains with long term people. Play the long game, not just I need this business to make money in next 6 months then I am going to start it and if it doenst make money in six months or a year I am going to give up.

But, I bet if somebody had the mindset and I am not advocating the starting a business, what we do is we teach people to buy businesses but if I was to tell or teach somebody who started a business, I would tell them that don’t worry about anything. Like make sure you have got income somewhere else for the first five years and don’t try to make ROI in first five years or to make it successful enough in first five years. Also have the time frame of doing the task or building the business for 10 year time frame. If you do it in shorter time period, great then you can sell it and if not at least you are not going to give up and I bet by 10 years of full dedication to one thing you are going to build a decent business and get decent results.

William Griffin:

It sounds like that when you put a longer time period it does, I heard two things; one it does take the pressure off potentially and then two it keeps you from, if I have to do this for 10 years and I can’t quit basically so it’s helping adjust that mindset.

Jaryd Krause:

Yeah it locks you in. Like we have said and we have talked about this in previous podcast, guys go and listen to those about the mindset of long term thinking and how it sort of absorbs the stress because you have got such a long time frame.

William Griffin:

Right. I know that has been super helpful for my own site, you know thinking actually I don’t have to fix everything on that website this week, it’s going to be a journey, it’s going to be a long time frame so helps take the stress off really. I wanted to ask what experience you have had in starting an online business. Because you haven’t always bought businesses but you have started a few and I think that helped inform why you like buying businesses instead so could you tell us little bit about that experience?

Jaryd Krause:

Yeah so first business I tried to start was well I had some businesses prior to the online business. I tried multilevel marketing, prior to multilevel marketing I tried well actually didn’t try but we built a car wash service with myself, my brother and two of our best mates at the time that lived close by and just went washed cars because we had one goal of let’s make some money. This is when we were teenagers in early years of high school. Let’s make some money so we can buy a boat because we loved getting towed behind the boat skiing and skurfing and stuff like that. So that was one of the first businesses, I did have a job like I really wanted money when I was young. I did the paper round as well and my goal was to buy my first car with cash and like I wanted to be financially fine and sound.

Then I started that MLM thing and then I MLM Multilevel marketing is like a startup and I also Googled the success rate of people that do Multilevel Marketing, it’s very, very low it’s almost more morbid than as your own startup outside of under the pyramid structure. I am not going to say it’s a scheme like some people do really good from it and it ca work and it can have good structure which can be beneficial to people. What I like about Multilevel marketing thing which is bit of a side note is that when you get in there they do teach you a lot of mindset stuff and sales & marketing which is quite cool to help you get through. So they are pretty supportive but that didn’t work out, I had the person above me just quit and I had no support in that then I was just full time plumbing and then I did a travel blog and I started the travel blog so I can make money from bogging and I built that up over a two year or bit more period and I learnt a lot of things about content creation, SEO and this is back in 2013 so this is ten years ago, the game’s changed a lot since then and I am highly educated I believe in these factors of online businesses these SEO and all that sort of stuff.

With that one was really tricky was that affiliate commissions weren’t great and ad revenues weren’t great at that time frame, I got a bunch of traffic which was great but I still gave upon that because I still wasn’t making any money and that was my goal and I gave it a two year time span. Probably if I had stuck to it like if I owned it till now for ten years I would have pretty significant business. That was coming back my own mindset and not thinking that I need to give myself a good long term time frame. The second business that I tried to start which was at the same time of running this blog is a drop-shipping business, spent a month building it getting all the supplies and everything like that linked up but I had no traffic and I didn’t know anything about marketing like digital marketing and paid ads and so that didn’t work out, I didn’t end up earning money because I was trying to create content and this is really long game to earn money through drop shipping when you are just doing the content strategy alone.

So that didn’t kick off the ground, I made some money from it but it didn’t really work. And then that’s when I sort of went alright lets go and buy something and then I bought three businesses and through buying those three businesses people were like dude you need to teach me this thing and I started a business. This is what I do advocate, the only reason I suggest people to start a business that there is a problem in the world that they are so passionate about solving and they want to be in that industry or niche and help people in that space for decades and decades. And they are prepared to run the gauntlet for that and they are not doing it just for money but they are doing it more for passion and that’s why I started BOB Buying Online Businesses is because I was just really, I had quit my plumbing job and I thought like seriously the best goal I had ever achieved is quitting my plumbing job and I shouldn’t say about but it’s one of the best goals I have achieved like getting out of that 9-5 rat race and having this lifestyle that I am so passionate about trying to feed that to other people and help people do the same and that’s why BOB started. That experience with BOB was completely different like I had money from my other businesses so I didn’t have the forcefulness of trying to make BOB work, although I do have ambition and I do have drive and I did drive it and grew it quite rapidly.

Obviously there were some ups and downs, you know it William, and a lot of other people know that I had really tough time with BOB with different business model and then I changed the business model between 2018-2019, it was a really tough time and I nearly lost it nearly lost the business and I was spending a lot of money every month just to try to crawl and bring it back to a new different business model that would be more sustainable and have less risk and be better for everybody in the whole including myself so I had more time and freedom, financial freedom from the business because I was getting quite shackled within the business with a large team at the time. So there was definitely so many challenges in the business and a lot of people don’t really, I don’t think they really talk about their own business publicly enough to share the challenges and the triumph, they only like to share their golden things that are happening. So yeah, it was a tough time and I stuck it out and BOB’s doing better than ever.

William Griffin:

I love that I think the phrase that stuck out at me that you said was you solve a problem you don’t start a business you solve a problem. I think a lot of people they want to go out and start a business to make money but they haven’t solved the problem and that’s just kind of just creating a mess.

Jaryd Krause:

Yea and this is a really good thing that you have just mentioned because you got to realize that what your goal is and people don’t realize that their goal is to make money, they realize that their goal is to make money but they think the vehicle is built a business and if your only goal is to make the money, why not go buy something that has got actual proof that’s actually going to make you money like a business or a different investment. It’s not ground breaking stuff and when you start a business it’s really tough and if you want to draw money from it straight away you are going to have very, very tough time because you got to put a lot time, effort, energy, money and resources into the business to be then able to eventually pull a return or make money from it so you are looking at a long period window of being able to recuperate some of the ROI from the business that you are starting versus buying an investment that’s like here is the cash soon as you buy it, let’s change the bank account details and make some money.

William Griffin:

Right, that sounds so much better, its almost like people want to pick something really difficult like if your read our YouTube comments and it’s wonderful that people comment, one of the things I have noticed is that people like to think that starting a business or they want to believe that starting a business is a great way to prove themselves and prove there are a lot of other reasons people are starting businesses besides wanting to make money and I think those can confuse people it can make people do things that are more difficult then need be.

Jaryd Krause:

It’s interesting. I think when you are in that period of what I would call the survival phase of running the gauntlet of working a 9-5, you are trying earn money so you can put food on the table and have a place to live. I think when you are in that position and you find somebody or you look up to somebody or you see somebody that has this thing that you want or lifestyle you want we have the perception like wow that’s like hard to get and that must be complicated and I need to do things. Yes you need to do things very differently. You need to change your behavior more so than have some sort of an elaborate business plan.

The elaborate business plan you know you can create a business plan over a full month and spend 40 hours a week on it for four weeks and built a full business plan over a full month but the reality of everything going to plan like anything in life is not perfect and ideal and things change and so what I am trying to say is to earn money you don’t have to reinvent the wheel. You don’t need to feel as though its difficult you just follow somebody that has done the simple path and then as you start to earn more money I feel and you come out of that survival phase you establish investments and asset classes and may be businesses.

My goal is to simplify things and make things more simple not more complex because the more complex it is the harder it is to wrap your head around. The more things you need to have involved and that creates the stress so yeah it’s an interesting thing that we have this perception of wow that’s very, very complex to earn money but even if you just think about not just buying an online business but buying any asset for example. If you buy a car and rent it out like for example you might be in a rent out AI car in the future and it just drives around as a taxi or all you do is just buy a car and put it onto a platform and rent it out. It’s that simple you don’t need a brand new amazing idea to make things complicated and do that at scale you need to buy more cars and put more on the platform or if you just want to invest in a really good index fund then find an index fund that pays you good dividends and just keep putting more money into it so damn simple like it doesn’t need to be complicated.

William Griffin:

Right I think one way, like if you are listening and trying to come up with ways to even grow your business, starting or acquiring your own business or trying to grow the business you currently have if you want to quickly get some ideas without having to reinvent the wheel, go to google, google your three competitors especially for google your three competitors and look at what your competitors are doing. I mean how many ideas have I gotten and Jaryd you have gotten by simply googling what everybody else is doing.

Jaryd Krause:

Yeah, competitive research in your field is so damn valuable. What I think is this really tough? That’s a very simple one to do William and most people just because it’s simple doesn’t mean it’s that common and a lot of people know to do that, that may be like an aha oh wow I just go to google and find out what other people are doing with their businesses in the space and how can I make my business similar or better to theirs, don’t copy. We have a great lesson in the community; good artist copy, great artist steal which is a quote from another artist and that’s a simple one may not be common but the best way to grow the business is to listen to the business because the business is crying out for you to do more of what is already working and all you need to do is listen to the business, identify that and do more of that and then you can grow it.

That’s the really simple method but you need to tune yourself into business and learn. This is what I help people with in one on one coaching do, you have seen that it’s like wow hang on a second you have got this idea from some podcast said I made $75 million in 73 seconds if you do this to your business its going to blow up. Very different business model, niche all those different things you know you are trying to take somethings from outside plug it into it and you end up creating tis Frankenstein business versus internal growth organically inside out which is one of my philosophies.

William Griffin:

Right. Yeah, I love that it’s just being aware of what’s working and what’s not working and if you are in the audience and you do sales call, you do copywriting, if you send emails whatever you are doing notice what the results are of what you are doing and do more of whats working. If you have two types of emails and you are sending out type A & type B and if you see type A gets opened 30% more than type B, then send more of type A emails.

Jaryd Krause:

So simple, right?

William Griffin:

That’s it, almost biological.

Jaryd Krause:

Yeah exactly.

William Griffin:

You have gotten yourself out of the 9-5 grind through beginning with the end in mind and finding a way to get out I want to hear about someone else you have taken from 9-5 grind to a life where they have more free time and they are earning an income that supports them and their family. Can you share a success story with us?

Jaryd Krause:

Yeah, people can probably go and YouTube this on my YouTube channel or on the site under the success stories, there is a couple but let me just ought to say Jeff. Jeff is a beautiful man who is from Canada working in the marine industry and he bought a business, he bought a content site and then he worked with me to grow it as well, it grew really, really well and it was in a niche where that niche benefited from some media that went very viral and became very popular and his business did really well in a few months and then it strated to come back down, I reached out like I like to keep good relations with people, people that I have worked with I just reach out and say hey happy new year, how are things going? Hope you are well.

Not for any agenda of my own, just to check in on to see how they are doing and if I can help them in a way then great! And I heard back from Jeff last month after messaging a bunch of people saying hey how are you, people that I don’t talk to regularly anymore which I used to and he said hey my life is awesome, I am giving up my job to test out this non work, non 9-5 life and that was about I forgot the exact year but he bought his business a couple of years ago and now he is like in a spot where he can semi retire. I think he can retire but he wants to do a bit of work on the side and he was super grateful again through his email. That’s just one example, there is a lot of people who have done some pretty cool things.

William Griffin:

That’s rad, that’s so rad. What do you think his mindset has been? Why has he been able to make this transition do you think?

Jaryd Krause:

Well people and this is not just Jeff but I will say that people that are similar to Jeff get these results and what Jeff does well same as these other people that take the approach the same way is that Jeff is just even kilt, he is level headed, he is not looking for insane results overnight and I just harp on about this stuff guys but it’s so damn important to really get because the rest of the world and rest of the media is like you need to get results within 30 seconds or else what are you wasting your time for? Like seriously come on, just scrap this idea or this thing.

He has just got the long term approach, he is methodical and at the start he got some really good foundations that we worked on together and set them in place and just kept doing them, kept that up and business kept growing and growing and it’s like I know it’s just so damn simple and people are thinking like hang on that can’t be the case surely its more complex. It’s actually not freaking more complex. Like in Bob all I do we just produce a certain level of things and we just keep doing a certain level of things and whether we throw more money at it or not it’s just going to continue to grow anyway and sometimes when we throw more money at it, it grows a bit faster and when we don’t it still grows anyway.

Like there are a couple of things that we do that allows it to grow and it’s been just like that for years and years and it’s the same way with most businesses. Yes we need it to be adaptable to change so we don’t end up like blockbusters and some of these other firms but once you find the main thing, make it the main thing and keep on going it’s not hard. One really good thing about Jeff and what he actually mentioned to me and I believe all consulting is not teaching skills in terms of strategies but in terms of managing people’s emotions and being a bit of a therapist and this is when the first time that my coaching was coined this and Jeff coined our coaching like he said it’s basically like therapy, business therapy I come to you with all the things were like I need to this, I need to do that, should I do this one or should I do that and which one is going to be the best one for me and what should I do here and how should I do that and it’s just sounding board of having me going look bro hang on like let’s think about these.

Let’s look at them and come to some conclusion of whats best for not just the business but best for you as well and it sort of just sheds away all of these ideas that society has put in our head that we need to do to make life more complex, more drama bla bla bla.. and just make things a lot more simple and you just go away from a session and are like ahh I am relieved and I have got these two things that I got to do and it’s so simple and it’s going to work and you put them into place and it works and that’s what I think is a big benefiting factor as well is not to plug me and my coaching but to plug any mentor or any coach that can be a sounding board for you, does not have to be me. But if you have somebody there that can sort of be your rock and your sounding board then you are not going to get lost in these crazy ideas and drama and all these different strategies that get fed to you like crack cocaine on YouTube and podcast and all that sort of stuff. Because they are addictive because we think it needs to be complex.

William Griffin:

Absolutely. I mean there can be so many things that can overwhelm you we can just come up with as many ideas as possible and it is so helpful to have someone; a fellow colleague, a partner anybody even may be journaling but other people can help cut through us we can make things so complex but we can cut down to the simple things with the help of other people.

Jaryd Krause:

Definitely. Like you are right you can learn so much from just people that are not at the level in business like you are or they may be in a totally different field and they may say something, they may be a truck driver and we have got truck drivers that we work with and they come with these things and we are like wow like you are smart, you are really smart and that’s ial. You simple and it really makes sense. You can learn from everybody from all walks of life and its beneficial as long as you know you can tune into, tune into these things and pick up and then be conscious of it. Like if you can tune into your business as well, tune into what people are saying and universe is saying without going to metaphysical and quantum physic, I won’t go into that stuff.

William Griffin:

Not too much physics, not too much woo-woo. I think that you got to listen to what’s going on like today I fixed my dishwasher and it was not draining and so I did a process of elimination and found out that a new garbage disposal you have to remove a cap when you connect it to the dishwasher hose and if the cap is not removed that means that water has no place to go so just by process of elimination and using YouTube and asking people but also paying attention to water not draining I was able to problem solve.

Jaryd Krause:

Congrats on getting that fixed.

William Griffin:

The win of the week for sure. Jaryd I think we have capped up a great conversation. I want to thank you for coming on and answering my questions. For those of you listening please tune into next time we will have more value bombs for you next time too. Thank you.

Jaryd Krause:

Thanks William.