I recently heard a talk on goals and how to achieve them. One of the key points was that no matter what the goal, how big or unusual it takes action steps to reaching them.
Let’s look at this in regards to buying a business. The goal is to buy and own a business. A mature, profitable and fairly priced business. 60-80% of people who say they have this goal don’t get much further than having the goal. They don’t do much about it and what they do is minimal.
On the other hand, my clients follow a plan. A plan that is part of a system that has step-by-step tasks and duties. Here’s the short list:
Preparation, of which the most important part is to determine criteria
Search & screen
Financing alternatives
Analyze
Value vs. price
Dealmaking
Negotiation
Due diligence
Transition planning
Close
Buyers who follow a plan like this, and emphasize finding a business on the hidden market elevate their chances of success by at least a factor of 10, if not 20.
Next, the same overview for preparing an exit strategy and getting the business ready for sale.
