Hey Biz-Buyers,

This is where we share some of the best insights, tips, and stories from Main Street and our private biz-buying community.

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One of our favorite ways to take advantage of the boomer small biz boom is knowing how to navigate seller financing.

Right now, we’re working on the finishing touches of a program to teach you all about it.

Whether you’re new to biz-buying or already have a few under your belt, this course will offer hands-on tips, real-life case studies, and practical strategies to help you learn how to fund deals.

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Today, in 5 minutes or less:

✔️ Buyer tip: expert thoughts on down payments

✔️ Grab bag: books our members are reading…

✔️ What are you waiting for? Get our free SMB buyer report!

✔️ 4 cool links from around Main Street

✔️ These new members are looking to buy a biz

Buyer tip: one expert’s brutally honest take on down payments for SMBs

Here’s what business broker and Contrarian Community facilitator Clint Fiore had to say to our community recently:

“I’m about to make a bunch of you mad but oh well...

Bring at least 15% down payment, preferably 20+% (unless you’re already very, very rich).

The reason I advocate for higher down payments on SMBs isn’t just because your payments are less and cash flow is better when you borrow less.

No, the top reason is optionality. It’s the same reason I tell people to put 15% or more down on a house — I believe you should put that much or more down on a business so you’re never ‘stuck’ where you can’t sell it if you really want or need to.

Avoid getting trapped in a business or a home. You need to be able to change your mind and sell if something unexpected happens (you or your spouse get cancer, a way better opportunity comes along that needs your full attention and capital, etc., etc. Life is full of surprises.)

Life is too short for the misery of getting stuck with no options and having to ride out an underwater position in a business or home and being paralyzed from being able to make next moves in life without bankruptcy. Bigger down payments let you take a small ‘L’ now and then if you need to without financial catastrophe.

Bring a bigger down payment, even if you have to give up a little equity. Don’t get stuck. And remember both homes and businesses have transaction costs of 6-12% or so to sell them, and the market can bring the value down a little through no fault of yours as well, which is why I think 15% should be your bare minimum down for most people.

You can still get infinite Cash on Cash return and put $0 or almost nothing down without violating this if that’s what you’re obsessed with.

You can have your cake and eat it too.

It’s called grabbing a money partner and giving them a generous chunk of equity for meeting the down payment needs. That’s how you get max return on invested cash + never stuck.”

More from Clint:

💰 An AMAZING thread about what it means to “buy a biz with $0 of your own money” and how to do it.

Grab bag: what our members are reading…

Our members often recommend all kinds of helpful tips, tools, and, in particular, books, including Economic Facts and Fallacies by Thomas Sowell.

Here’s one member’s take on their experience reading it:

“This was a really good book and had a lot of interesting facts about what is real versus what the media/politicians have been pushing for a long time. My takeaway was that I really wish everyone was on the same page and ultimately wanted to know the truth, even if it goes against your political or religious beliefs or even your ego.”

On that note, they also asked for other members’ book recs, and got enough responses to read a book each week for months on end. Here are a few to get you started:

• Never Split the Difference
• Principles
• Competing Against Luck
• Measure What Matters
• Who Not How
• 10x Is Easier Than 2x
• Atomic Habits
• Whatever You Think, Think the Opposite

Read up!

Get our free SMB report right here

We recently surveyed hundreds of people in our business-buying group.

We asked them about:

• Family status
• Net worth and income
• Employment status
• Motivations for business ownership
• Target income from an acquired business
• Time & resources spent on acquisition efforts
• … and more

Then, we wrote about all of it in our 2024 Small Biz Buyer Insights report for the SMB community.

But be sure to download the report for FREE:

It’s loaded with unique and valuable insights — survey data, expert perspectives, and market research from our community, our friends at Live Oak Bank, and others.

Links from around Main Street:

📘 Bookmark it: A great thread about seller notes, “one of the most critical yet overlooked” parts of biz buying

📅 While we’re on the subject: Be in the know when our new course drops. Sign up here.

🚽 Can’t flush this away: America needs to find 550,000 plumbers, fast.

🧑‍💻 So college IS still useful: Students are helping SMBs defend against hackers…

📱 Interesting read: This study highlights why SMBs are at the center of the TikTok ban debate…

Who’s looking to buy a biz?

A partial list of real people who began their Contrarian Community journey recently…

🏠 A tech W2 turned real estate broker & investor

👷 A commercial construction general contractor

🩺 A territory manager at a medical device biz

⚙️ A production manager in the SMB manufacturing industry

💵 A startup founder with decades of fintech experience

📊 A senior enterprise database architect

🏥 A veteran and founder of a facility services company

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