The last 24 hours have been a little crazy.
Yesterday, I decided to take an impromptu overnight trip to Phuket, Thailand.
If you follow me on Facebook you will know why.
A couple weeks ago I announced I’m looking to get into the resort business.
I want to start my own resort chain (just like Hilton, or Marriot), and I’m going to start by purchasing one resort within the next 6 months.
I know absolutely nothing about the resort business, other than what I’ve learned from staying at many around the world these past few years and doing our events at them.
My decision was triggered by 2 things:
1.) I recently attended a 22k high level mastermind at a castle in Scotland. The guy running it, a 70 year old business veteran teaches how to raise capital and do leveraged buyouts followed by a public offering. He grew a 450m company pretty much from scratch back in his day.
After attending that mastermind, I realised I was not thinking big enough, and that I needed to be doing more. So starting a resort chain was my big idea that came from that.
2.) The second reason is, MOBE spends a fortune on resorts when we hold our high end masterminds around the world.
For example, last year I spent close to 500k on just rooms, food, and event space at the Atlantis resort in the Bahamas to put on a Titanium Mastermind! (The resort was great, but we grossly overpaid if you ask me, and if I could go back in time I would have chosen another resort.)
Anyway, you can see in 2016 alone we’ll be going to 9 different countries and finding 9 different resorts (see the MOBE Mastermind Schedule) and we’ll literally spend millions of dollars all up.
Having my own resort to hold these masterminds at could save us a lot of money.
(By the way–a few people have asked if this will take my focus off running MOBE. No it won’t, not in the slightest! I’m as hungry today as I ever was with building MOBE.)
So for close to 2 years I’ve been flirting with this idea, and now that I’m financially in a position to do so it’s time to go ‘resort shopping.’
I’ll freely admit I’m clueless about the resort business.
Then again, I was clueless about internet marketing in 2008, and have since done pretty well.
Just like I taught myself internet marketing by throwing myself into the deep end of the swimming pool and being forced to swim for survival, I plan on doing the same with this business.
That’s why I flew to Phuket.
This resort for sale I looked at is selling for 8m USD. It’d need at least another 2m in renovations, including building a big seminar room.
It has 75 rooms for guests.
It’s right on the beach, and is only 7 minutes from the airport.
I got in a day early before my meeting with the sales rep and stayed under a different name so they wouldn’t know I was there, and just observed.
The actual building is nothing too stunning.
But the location is.
There’s no such thing as a ‘private’ beach in Thailand, but very few tourists / locals come to this hotel’s beach, so it may as well be.
On the other side of the beach you see pictured there’s a mirroring piece of land extending out and sheltering it, so it’s free of rips and is always safe to swim in for guests.
According to the financial statements I got before arrival, the resort averages 72% occupancy rates throughout the year.
Last year it netted about 700k USD. With about 18% margins.
I don’t know if the financial statements are audited and I haven’t done any real due diligence on them yet, so I’m taking those figures with a grain of salt. But they’re encouraging.
There’s a lot to learn about investing here in Thailand–including foreign ownership laws and that kind of thing (apparently you need a Thai local to own 51% of the property, so that’s the next hurdle.)
It’s all very exciting.
This was the first resort I’ve ever looked at to seriously buy.
I’m going to go see some more in some other nearby Asian countries, plus in about 3 weeks I’ll go to Costa Rica for a few nights to look at my options there.
Who knows …
I will keep you posted.
Here’s Why I’m Sharing All of This with You:
If you want to learn business–whether it’s an online or offline business–the best way is through doing the business.
It’s very easy to get caught up in studying theory … reading books, buying courses, attending webinars, but taking no real action because you don’t feel you’re ‘ready’ (whatever that means.)
Even after all these years I still do this myself.
Last month I ordered about 10 different books from Amazon on the hotel industry so I could study up.
I told myself I needed to start watching episodes of ‘Hotel Impossible’ on YouTube and learn the lingo.
But in reality, I was just procrastinating on taking real action.
I was afraid to take action because I didn’t want to make mistakes, look foolish, lose money, etc.–just like many people reading this now are afraid to do in their own new business ventures.
Then I thought about how I had learned internet marketing and grown MOBE: through taking action and making a lot of mistakes.
So I began to apply that to this new venture.
Right away I scheduled an appointment with the 2nd largest bank here in the city to ask for a loan to get a resort (not even knowing which country it was going to be in!)
I showed up to the meeting with these 2 bankers in jeans and a wrinkled shirt (the internet marketing lifestyle has made me into a bit of a slob when it comes to dress sense!)
They were using terms which I had no clue about (but I just nodded my head up and down as if their language was perfectly understandable to me.)
As soon as the meeting was done, I looked up the terms, and I went right to a tailor to order a brand new business suit, which is arriving tomorrow night.
My point is, no amount of studying can compare to getting real life experience and making the mistakes.
I’m not telling you to stop buying courses.
I’m telling you that the courses are useless if you’re not also taking action at the same time while you’re learning.
If you only consume theory without the action, the theory will always remain at the surface level of your brain, and the real lessons won’t sink in.
You need real world experience to relate the theory to.
I have no doubt that I will make huge, costly mistakes as I enter the resort business.
I’ll make a fool of myself. Many times over.
But I’ll succeed because I’m willing to make those mistakes.
And as I learn these new business lessons, I’l be sharing freely on our site at mobe.com.