In This Episode
Too many folks get in their own way when it comes to buying a company. In fact, they usually stop it before they start. The biggest reason has to do with money…or lack thereof. We hear this all the time when it comes to buying a company.
On tonight’s show we shared several stories about current business coaching clients as well as other potential clients who we’ve spoken with just in the last week alone about how to buy a company. And doing it without putting down a ton of money. The key with buying anything, whether it be a car, house, or a business, is buying it right.
One of the biggest mistakes to avoid when it comes to buying a company is to make sure you don’t get emotionally involved as the potential buyer. Keep in mind that the seller is already very emotionally involved, it’s their business after all. One of the ways to avoid this emotional commitment is get to the point of making an offer sooner vs. later.
The first question you need to answer when it comes to buying a company is, “Would you take it if they gave it to you?” Keep this question in mind as you’re looking at the potential company to purchase. Simply “giving it to you” can take a lot of different forms. The seller could play the role of the bank and you as the buyer pay them out of the future profits of the business, so the business literally pays for itself. Or, the offer could be so low, say a few thousand dollars, that it’s basically equivalent to someone giving it to you. The point is, don’t use not having a nest egg of money as an excuse for not buying a company!