If you have never bought a business before you can start right here. Why on earth would you want to buy a business? It is a big job to buy one and a big job afterwards to run one. Even if you don’t run your company, and sit back and
collect checks which I like to do, you will be responsible for it just like a child. You will not be able to ignore it. You will be able to take expensive vacations but when you come back you will have a company waiting for you to take care of. I’ll tell you the reason I bought my first business (and I got the idea from Ollie North): I thought it was a neat idea. If that is not the world’s worst reason to buy a company then I don’t know what is. I always thought it was a neat idea both when I had a job and when I didn’t. Although it might have been a terrible reason it did one thing for me: It keep going after the prize, it gave me persistence. Moreover, buying a business is much easier and profitable than getting a job and I don’t even need to prove that anymore. If nothing else you should take away this: It takes hard to work to buy a business but buying a business doesn’t have to be hard work. Which is to say you will have to spend many hours to buy a business but many of those hours can be extremely fun and rewarding. The proceess of buying a business will give you these skills: 1. Networking 2. Face to Face communication 3. Industry familiarity and analysis 4. Legal document reivew and preparation 5. Account principals and structure 6. Dealmaking skills 7, Negotiating skills 8. Phone skils 9. Company top management skills 10. Wealth building skills To Name But A Few In short, the process of buying a business touched on virtually every aspect of business and wealth even when I hadn’t even completed a deal yet. Just the preliminary process alone of sourcing deals, and working with brokers, sellers and business professionals educated me well
beyond the limited scope of each of these areas. Once I went through this process a few times, again even if I hadn’t done a deal, I was no longer an employee, or, to be blunt, a cog in a machine. I was now a dealmaker, a founder, a CEO, a partner, all positions of exponential credibilty which build on your access to the next opportunity. So, ok, you sold me – what does a new buyer do to get started? The first thing you do is to keep your day job. The second thing you do, if you cannot do the first thing, is secure an interim source of income. Holding your own financialy is important to do while undertaking months of dealmaking. The third thing you do is for those who can’t do the first two things. This website is for
you. Your back is against the wall and you are not alone. You need the shortest distance between your current situation and a competed deal. So start here: 1. Start getting deal flow – contact brokers, websites, pick some deals, and get info 2. Pick up the phone start talking to business brokers, go to the small ones first the ones with retail stores and small deals 3. Collect packages and review the materials. Keep an email dialogue with the brokers. Ask questions via email. 4. First set up meetings with networking contacts. This should include accountants, lawyers, bankers and other businessmen. Practice your pitch on them, tell them who you are and what you are trying to do. 5. Set up meetings with brokers. Talk about the deals they have and how they structure their deals. 6. Finally, you are ready to meet with your first seller! If all this sounds time
consuming while at the same time you are in a hurry because you have no income then yes, it is. But then, trust me, when you are motivated by financial need, fear and greed you WILL make these things happen fast. You won’t get lazy when things are tough.