Here is a tip for all new searchers when speaking to a lender.
TIP # 1- Stop telling the lender that this is your first business (which is ok) but then telling them, this will be the first of many because you intend to have a portfolio of 40 businesses in the next 10 years. All this does is tell the lender that you have absolutely no idea what you are doing, and you are already pipe dreaming about owning all these other businesses. 100% of your focus should be on making sure the business you are buying doesn't crash and burn, understanding the product or service you will be selling. Learning the process and procedures involved in running your new business and making sure you have a resolute understanding of the monetary controls. Focus, focus, focus is how you win.
TIP # 2- Stop telling the lender that failure is not an option. If you do not think failure is an option than you do not understand how you can fail. You are only looking at one side of the coin. Failure is always an option especially when things happen completely out of your control. Anyone remember the BP Oil Spill as an example? Of course, nobody wants to fail, but statistics don't lie and knowing when to stop throwing good money after bad is a sign of maturity.
Lenders want to know that they are making a prudent decision by lending you x amount of millions. They want to know you are committed to the project and that your head isn't in the clouds, that you will be (at least for a while) boots on the ground running the business and learning everything you can about it. They do not want to hear how the seller and existing employees are going to run things while you visit once in a while to tell everyone good job. That is pure foolishness.
Buying a business does not make you an entrepreneur. Working at the attributes of being an entrepreneur makes you one. Buying a business can be very rewarding or it can make you very bankrupt, choose wisely.
What not to say as a new searcher
by a lender
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We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
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