Tips For Generating Deal Flow By Directly Contacting Small Business Owners

TIPS FOR GENERATING DEAL FLOW BY DIRECTLY CONTACTING SMALL BUSINESS OWNERS

Hello,
We are looking for suggested tips how to generate deal flow by directly contacting Business owners. 
To be clear, we are aware of working with business brokers, etc, but are specifically interested in learning methods to to directly contact small to medium size business owners.
We are interested in business with $600,000 - $1,500,000 EBITDA.
I am also familiar with LI Sales Navigator, but would sincerely appreciate other options. Regarding Sales Navigator, if you have an option to create a funnel using this option or another would like to discuss the specifics.
If you are interested in having a call, let's arrange to talk.
TIA for your suggestions!

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investor The University of Texas at Austin - Red McCombs School of Business University of Vermont - 01/29/2021

I talk with fellow business owners all the time because I have a company that partners with them. What about starting a consulting firm that focuses on prepping owners for sale in your target industry/industries or one that services companies in that space in another way. Or you could do a podcast/other media about business transition. Just some ideas.

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investor University of California, Berkeley - Haas School of Business Rensselaer Polytechnic Institute - 01/30/2021

Like any sales process you have to identify your targets, then generate awareness, then qualify leads then engage and hopefully close. You are selling business owners a product, which is an opportunity to sell their company.

Take each step of the process and identify tactics for how you will execute.

To identify your targets, decide your industry/ies, geography and firm size, and you can engage domestic list building companies or go on Upwork and find overseas contractors that will deliver you lists of firm owners and their contact information. You provide them with SIC codes, zip codes and sales ranges, and they come back with a list of companies. There are plenty of posts in the Searchfunder archives that detail how to do this.

To generate awareness, create campaigns via multiple means. E-mail, letter-writing, cold-calling. Test each tactic and see which produces the most warm leads, then apply your effort to the one that is most productive. Realize it's a big numbers game. Expect response rates in the low single digits. Business owners get pitched all the time by brokers and i-bankers. You have to find a way to rise above the noise.

Prepare your "spiel" for when you get a meeting with an owner. I recommend building rapport and establishing that you are genuinely interested in the owner's company first. Small business owners treat their firms like a member of their family. It's like you are asking to marry their daughter. Get them to like you before you start asking them to turn over their financial statements to you. Show them that you know a bit about their company and industry. Compliment them on what you think they do well.

Combine a focused strategy with the tools you have at your disposal, put in the time, face the inevitable rejection, and keep at it.

You've basically got to be a good CEO, good CMO and good VP of Sales to identify and buy a business. But if you succeed you will sharpen skills that will then help make you a successful operator.

TIPS FOR GENERATING DEAL FLOW BY DIRECTLY CONTACTING SMALL BUSINESS OWNERS

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