Convince seller of your ability
June 26, 2023
by an investor from University of Delaware in Wilmington, DE, USA
A lot of times searchers are looking for businesses outside of the industry they come from. Does anyone have suggestions on how to convince sellers that you will be a good steward of their business. Any reading materials, etc?
in Las Vegas, NV, USA
Small things but it makes a difference.
Do some stalking of the owners before you call the broker or seller and find something you have in common. Use Facebook, Linkedin, Instagram, TikTok, Google, Secretary of State website, court case summaries, local area search for their name, industry forums, search for their email address via Google and see what websites pop up.
For example the current deal I am working, I knew from research that the owner is a current Black Belt Jiu Jitsu World Champion and he hates spending time away from his toddler and gave up his dream career as an EMT because he seen too much bad stuff. He also has his own nutrition company and recently setup another business in the next state.
So when I made my intro I gave him 60 seconds on my back ground (which was all true) - I was a volunteer EMT for 5 yrs for the local community for free as I loved the role. I did this whilst serving in the military, which I eventually left because my children were my world and when my son was 4 weeks old I was sent away for 9 months.
I told him about my plans to set up a non-profit for kids who are one decision away from ending up in jail. I want to be a positive male role-model in their lives, hold them accountable and believe in them whilst teaching them martial arts as a therapy and path to discipline and believing in themselves. I am a Taekwondo Black Belt and national champion. I then casually dropped into the conversation that I want to make sure kids who come from bad homes need good quality nutrition to help them think clearly, stay healthy and have a brain that is working optimally.
We had a huge amount of rapport from the first 2 minutes of our meeting.
That 120 seconds has got me to the point now of buying it 100% seller-financed, 42% under their asking price and having them allow me to use their license for 6 months for free, as well as several other concessions.
We had a saying in the military, time in reconnaissance is never wasted. Never underestimate the power of connection and rapport building.
in Manville, Lincoln, RI 02838, USA
Books and theory are a great starting point, but the owner can, and will, spot if you're talking purely theory or not. If you go above and beyond other buyers, by displaying a level of knowledge, sophistication, and insight on the industry that conveys genuine industry acumen, the seller can believe you're the one to take their company to the next level.
In short; In lieu of experience, defer to observations.