Notes
Starting a new podcast series and will try to learn something on how to be an entrepreneur via buying a “small” business.
So far so good, strongly biased on an American reality, suffering at least until episode 6 of survival bias, but really interesting and insightful.
Couple of key takeaways:
Deciding how you will you fund the search is key and will have consequences on your choice.
Looking for key drivers for a good business is paramount (non-cyclical, loyal customer base, stable revenue streams, healthy margins, macro tail winds, etc…) and the price you will pay.
You cannot set too many constraints on your search (the widest the net the better in terms of geographies and industries)
Business size should not to be too big, but with room to grow, and not to small otherwise you will end up buying a job.
As mentioned it might be a strong and compelling 3rd alternative.
The book was also added to wish list.
amazon.es/dp/B01KP33K4Y?amp%3Bcolid=14M…
“…Are you looking for an alternative to a career path at a big firm? Does founding your own start-up seem too risky? There is a radical third path open to you: You can buy a small business and run it as CEO. Purchasing a small company offers significant financial rewards—as well as personal and professional fulfillment. Leading a firm means you can be your own boss, put your executive skills to work, fashion a company environment that meets your own needs, and profit directly from your success.
But finding the right business to buy and closing the deal isn't always easy. In the HBR Guide to Buying a Small Business, Harvard Business School professors Richard Ruback and Royce Yudkoff help you:
Determine if this path is right for you
Raise capital for your acquisition
Find and evaluate the right prospects
Avoid the pitfalls that could derail your search
Understand why a "dull" business might be the best investment
Negotiate a potential deal with the seller
Avoid deals that fall through at the last minute …”
