Here are some of the worst myths for people looking to buy a business for the first time 1. You can make your own hours... In a sense yes you can work any 80 hours out of the week you choose 2. It is passive income: When you buy a business at least for the first few years you are likely going to work harder than you ever have before. You will work longer hours, with less certainty and more risk. This will produce more potential upside but also more downside 3. Depreciation doesn't matter: EBIDTA means Earnings Before Interest Depreciation and Taxes. Thus many people don't even think about depreciation being an issue. But a big problem is some businesses have a TON of depreciation... A few examples are Trucking/Transportation industries, Heavy Equipment Rentals, Waste Hauling etc.... These businesses have constant depreciation that is a material cost in the business. Think carefully here 4. "Its Market": From brokers, to lawyers to, lenders to sellers this is one of the most over-used sayings. In the small business space there is a ton of variance in how things are done. This is true compared to many other industries. There are very few things that are obviously "market rates" Maybe some loans from SBA or banks classify here, but even if something is market it doesn't mean its right for you. Always think especially when someone says something is market 5. Spreadsheet math: The assumption that it will be easy to add 40% compounded revenue every year because it looks easy on a spreadsheet. 6. Recurring Revenue today will be here after the business is sold: You have to think deeply about this, and truly understand if this is true 7. One time add backs: Many times sellers will have a one time add back that really should be a recurring part of the business Just a few simple thoughts to think about on your ETA journey