🤝  The Biz Buyer’s Guide to Risk (Without Going Insane)

Biz Buyers,

This is where we share some of the best tips, tools, and ideas from inside our SMB acquisitions community every week.

But before we dive in… got plans tonight?

Who’s up for a little Deal Analysis?

It’s all going down @6pm CT live online and we’re doing something we’ve never done before...

A complete deal review for all of you, just like some of the ones we do in our private community.

We’ll evaluate a deal live to see…

• if it cash flows?
• if it meets the business buyer’s financial goals?
• if the business has accurate and substantial P&L’s?
• what other questions the buyer should be asking?
• what financial or deal terms the buyer should consider?

Can’t wait for this. Know it’s last-minute but hope to see you there...

Okay, now let’s get down to business.

“Risk comes from not knowing what you’re doing.”

- Warren Buffett

How to Make Risk Your B*tch

There’s a reason Buffett always looks cool, calm, and collected — it’s because the man knows what the hell he’s doing.

Buyers, if you’re sweating bullets, it’s probably because you’re driving blind.

People always ask us, “How can we entirely remove the risk from a deal.” That’s like asking how to go swimming… without any water. Ain’t possible, bud.

There’s no such thing as no risk. Risk always exists. But it’s exacerbated by not knowing what you’re doing.

If risk comes from not knowing — maybe it’s time to start… knowing, so you can understand how to build ownership without losing your shirt.

Fortunately, this is a workable problem if you ACTUALLY do the work (and put in the time). One of our members put it perfectly:

The goal isn’t to YOLO your way into bankruptcy. God, no. It’s about learning how to take smart risks and buy Main Street businesses the right way, so this isn’t you in the middle of a $1.2M negotiation for a roofing company:

The real play is to learn what you’re doing — to learn it cold — then put it to practice.

Risk is dangerous, but it’s also the lever for opportunity.

The more you know, the less you gamble. And when you shift from gambling to strategizing, your risks become calculated Main Street power moves.

So, how do biz buyers make risk their b*tch?

They master the game.

Slowly at first…

…Then all at once.

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