In Arizona, Small Businesses Just May be The Next “Big Thing” in Investments

Robert Roth, Ph.D. (Managing Director of the Arizona Business Center, LLC) has been tracking investment cycles for more than 30 years. During a recent presentation, he observed that “During the 1980’s, tax-sheltered real estate and oil partnerships were all the rage. In the 1990’s, technology stocks were the big thing. Then, during the first few years of the 21st Century, residential real estate was hot. With those cycles having come and gone, investors are now asking ‘What’s the next big thing’?” According to Dr. Roth, the next big thing just may be small businesses located in vigorous economic regions such as Arizona.

Why small businesses? Why Arizona?

According to Dr. Roth:

• Arizona’s economy is growing rapidly. As of late 2006, Arizona replaced Nevada as America’s fastest growing state.

• Small business is the engine that drives Arizona’s economy. U.S. Small Business Administration statistics indicate that small businesses account for 97% of all employer businesses in the state.

• The market for buying, selling, and investing in an Arizona small business is expanding rapidly. At any point in time there may be 3,000 or more owners actively seeking to sell their business. And for every business offered for sale, there may be 20 or more buyers looking to buy. Arizona’s small businesses are rapidly becoming liquid investment vehicles.

• Small business investments can be highly leveraged. For example, a typical $2.0 million deal might involve a cash investment of as little as $200,000 with the remainder being financed. If, with a few years of growth plus a little inflation, that business sells for $3 million … then the return on the initial investment would be 500%.

Of course, this is just an example. But given the vigor of Arizona’s economy, it is “doable.”

Another attractive aspect of investing in a small business, according to Roth, is that “Owners and investors have a great deal of control over their own fate.” Unlike stock and many forms of real estate investment, small business owners know what is working and they can build on that. Likewise, they know what is broken and they can fix it. They can control the management of their investment rather than being a victim of it.

Summing up, Roth noted that “The path to profiting from an Arizona business investment is a process.” Through 30 year’s of research and application, both he and his company, the Arizona Business Center, LLC, have developed a method for buying, building and selling small businesses. They call that method the ABC ProfitPathTM.

Additional information on Arizona small business opportunities and the ABC ProfitPathTM is available at www.AzBizCenter.com.

About Robert Roth, Ph.D.

Dr. Roth is a founder and Managing Director of the Arizona Business Center, LLC. His business credential includes several executive positions with Fortune 500 organizations, consulting to more than 100 clients and several entrepreneurial projects including founding Roth/Graham Advertising (Minneapolis) and redevelopment of the Grand Canyon Railway (as President and Chief Operating Officer – his doctoral dissertation served as the vision and business plan).

About the Arizona Business Center, LLC

The Arizona Business Center provides business brokerage and consulting services utilizing the proprietary ABC ProfitPathTM method. Arizona Business Center, LLC is located at 4647 N. 32nd Street, Suite B205, Phoenix, AZ 85018. Their phone number is 602.522.1520. The website is www.AzBizCenter.com. Email is info@AzBizCenter.com.

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