Revealing the Secret Sauce for Execution!
There are two things that an Acquisition Entrepreneur needs to close on your first business.
When buying a company, especially for the very first time, there’s one thing that rules over that decision process and experience.
In other words:
“What are the things that you don’t know about the business?”
“What are the things that you weren’t able to pull out during due diligence that are going to impact your decision later?”
I’ve heard it said that before closing the buyer has all the money and none of the information and the seller has none of the money and all the information.
After the transaction, the buyer has none of the money & none of the information and the seller has all the money and all of the information.
It’s not exactly accurate but it’s directionally true, right?
There’s always this component where the buyer is having to take a risk – a leap of faith.
In order to execute, you need to have the courage to make that leap of faith.
There are two things that will help and two things that need to be kept in check.
By the end of this story, you’ll have the tools that you need to move forward, know what is normal and true, and recognize the things to pay attention to.
The first time I closed on a business as well as the second time I closed on a business, my heart was pounding with fear while signing those documents. I remember having to breathe and reassure myself since it was a huge personal guarantee. It did start to get easier after the 2nd closing.
When you’re buying companies, if you’re young and don’t have a lot to lose, it may be easier to be willing to take these significant personal guarantees to acquire your own business and keep all the equity. That’s really what worked for me.
While it does get easier, that’s only because as you do it, you gain more and more confidence in your ability to actually buy a company and see it through to the end.
When it comes to the difference between searching and actually closing, there are two things that you need to be focusing on.
Persistence and the ability to pivot.
My 8-year-old daughter is so persistent that she definitely eats more cookies, more desserts and watches more videos than her other sisters. That’s because she stays on you. She knows what she wants. She works to get it.
That’s persistence. Commitment to the goal and staying after what it is that you want.
In Entrepreneurship, we say, “I’m a hundred percent committed until the world, or the customers, or the data explains to me that I need to change what I’m doing to accomplish that goal.”
Having that persistence towards the goal and that ability to pivot is really a commitment towards getting it done.