This week on the Freedom Fast Lane podcast host Ryan Moran interviews entrepreneur Shakil Prasla to discuss his unique and successful passive profit investment model.

Prasla – an Austin, Texas, native – only runs the businesses he buys for about one year. After that, the entrepreneur takes a hands-off approach in his leadership role. The passive income business model embodied by Prasla enables him to move onto the next project while his existing ones continue to turn large profit margins.

It’s all in the research, according the Prasla. Selecting which business the young entrepreneur invests in lays the initial groundwork for long-lasting, passive income sources. In 2016 alone, Prasla researched roughly 1,000 different projects to purchase.

By the end of the year he had only bought two of those 1,000 researched. After vetting the projects, Prasla explains his next steps are to narrow his interests down to roughly fifty projects, with only ten of which receiving offerings.

Once a seller accepts Prasla’s offer, he dives into the specifics. The first month of ownership is spent understanding all business processes. This provides Prasla with the detailed knowledge of the business that he can then transfer to a manager that will direct the day-to-day operations.

The two- to five-month period serves as the initial growth period of the business. Prasla’s hand-picked and properly vetted managers – who work virtually in the U.S. and abroad – are directing all of the company's business.

During this time, Prasla is an essential adviser to the managers in his transfer of business operations knowledge he gains through online forums and news. As Moran put it, Prasla works as the “Tycoon Chair” to oversee passive profit.

Once substantial business growth is achieved, Prasla truly detaches himself from the business’ operations. This period is know as the “automation” phase. It is during this stage of the business’ growth that Prasla begins researching his next project. The operation is high-paced, and takes the skillset of a principles entrepreneur to properly execute.

Moran questioned the stress of managing so much at once, but as Prasla outlines in the podcast, it’s all about the preliminary research and transfer of knowledge thereafter to managers.

To learn more about how you can make high levels of passive profits, listen to the full podcast on Freedom Fast Lane.

Outline Of This Great Episode

  • [0:16] Ryan’s introduction to Shakil - and the business model he uses.
  • [2:08] How Shakil got started in business.
  • [3:24] The type of businesses that Shakil buys.
  • [5:36] The importance of a great team.
  • [8:19] Shakil’s role as owners - passing off the work to managers.
  • [8:50] The process of finding the good people to run the business.
  • [11:10] The complications that can happen in this business model.
  • [15:45] Exploring the growth strategies possible in potential businesses.
  • [19:00] Maximizing the previous owner’s missed opportunities and adding product line improvements.
  • [21:40] 4 key ways to get financing for a business purchase.
  • [24:30] How Shakil finds the businesses he purchases.
  • [25:57] The first months after buying a business. What does it require to run it well?
  • [27:30] Taking breaks between acquisitions? What’s realistic?
  • [28:45] The reasonable multiple Shakil looks for in companies he might buy.
  • [30:53] The hardest part of the process: the risk of online businesses.
  • [35:04] How you can find and support Shakil.

Action Steps From This Episode

FOR GETTING STARTED: Understand that any existing capital can be invested in businesses just as much as property or stocks. Finding the right businesses for sale and exploring their potential is a great way to build a portfolio of business investments.

FOR GREATER SUCCESS: Once you purchase an existing business, ask the previous owner what improvements he/she has considered but hasn’t implemented. Find out why. Often, you can implement some simple improvements and see immediate profits.

Connect With Today’s guest: Shakil Prasla

Website: http://szventures.com/

Shakil(at)SZVentures.com

On Twitter

On LinkedIn

Resources Mentioned On This Episode