49 - A Cautionary Tale of Buying Too Small
Today's interview is a little different.
JD Klein bought a print shop, a type of business you see a lot on BizBuySell.
And while he didn't go out of business, keeping this print shop alive was financially punishing for JD.
You'll hear it in his voice.
In the first year as new owner, he finds himself digging change out of his ashtray to fill his gas tank.
And this after being a corporate guy earning over 200 grand a year just a couple years earlier.
Two specific things I want you to listen for.
First, what made the business so difficult was that it was too small.
Even after growing it impressively over a few years — JD squeezed out margins way higher than the industry average — it still wasn't throwing off much cash.
So don't buy too small.
It's more risk, not less.
Second, though JD's is not a story of financial victory, it is a personal victory, which counts more in the long run.
I think you might share my respect for what JD went through and how he kept it all together.
Here he is, JD Klein.