Pillar 1: Prepare Yourself
The first pillar is to prepare yourself. This means developing the skills and knowledge you need to be successful in business.
Some of the things you'll need to do include:
Learn about business valuation. You need to be able to accurately value a business in order to make a good offer.
Understand the business buying process. There are a lot of steps involved in buying a business, so it's important to be familiar with the process.
Develop your negotiation skills. You'll need to be able to negotiate effectively in order to get the best deal possible.
Pillar 2: Develop an Investor Network
The second pillar is to develop an investor network. This means finding people who are willing to invest in your business buying venture.
There are a number of ways to develop an investor network, including:
Attending business networking events. This is a great way to meet potential investors and learn more about the business investment world.
Cold-calling. This can be a time-consuming process, but it can be effective if you're persistent.
Using online platforms. There are a number of online platforms that can help you connect with potential investors.
Pillar 3: Develop a Lender Network
The third pillar is to develop a lender network. This means finding people who are willing to provide financing for your business buying venture.
There are a number of different types of lenders, including banks, credit unions, and private lenders. It's important to shop around and compare rates and terms before you choose a lender and be careful about upfront payments.
Pillar 4: Find Good Deals
The fourth and final pillar is to find good deals. This means finding businesses that are undervalued and have the potential to be profitable. Off market deals preferably.
There are a number of ways to find good deals, including:
Networking with other business owners. They may know of businesses that are for sale.
Using online platforms. There are a number of online platforms that can help you find businesses for sale.
Attending business auctions. This can be a great way to find undervalued businesses.
By following these four pillars, you can increase your chances of becoming a qualified buyer.