Let’s talk a bit about the dynamics of how an international community participates in buying and selling pool routes and running them as a business.
As we grow and expand our business, we’ve been working with foreign investors who want to enter the U.S. on something called an E2 visa. In doing this, the main vehicle is investing in your own business in America that will provide for ongoing residency on a temporary basis.
People who have gone through these visa processes understand that the E2 does not give permanent residential rights or citizenship. Instead, it’s a way to stay legally in the country that is renewable as you build your business and continue to maintain it.
Why Get an E2 Visa
One reason that foreign investors tend to utilize an E2 visa is that alternative visa requirements can be tough. There might be an alternative visa that is backlogged at USCIS, or where there are other costs or eligibility requirements that don’t apply to the E2.
We’ve seen how the E2 visa can be an excellent vehicle for an individual or family that wants to move across international boundaries and be present internationally as they grow their net worth and business interests.
Actual Value Investments
Here’s one of the reasons why these foreign investors like investing in pool routes.
Pool routes have a value that is roughly equal to their actual income over time.
That is definitely not true of other kinds of businesses. Take restaurants, for example, where these businesses tend to be traded at 2 to 3 times their actual income, partly because of the costs that are involved. In a restaurant, there are ongoing costs in terms of food, labor and real estate, and that’s just the tip of the iceberg. Of course, restaurants have their own kinds of management requirements as well.
But other types of businesses, including lodging and entertainment businesses and other kinds of boutique shops, usually have more of an outsized initial cost. Pool routes are an efficient way to get involved in business at a sort of one-to-one level.
Another way of talking about this is in terms of overhead. Pool routes don’t require a lot of capital investment in equipment. What gear and equipment there is will be portable, for the most part, and the company has the capability to use personal vehicles for business use if that makes sense to the business model.
When you add everything up, it looks like pool routes are an excellent investment for an E2 visa project. There’s also a sort of relaxing ethos to the pool route business. Many of the best competitive businesses are competing with others in terms of presentation and curb appeal, so someone who is a born showman or entrepreneur can find ways to get the competitive edge in pool route business.
Then there’s the buying and selling end, which we can help with. Talk to Sealey about pool route buying and selling and how to strategically grow your own enterprise.