Rule 1 - make sure the business is right for you ie. your strongest skills must align with the driving factor of sales & profits (in other words, focus on your strengths & don't pretend you are something you're not)
Rule 2 - Never buy a business without Seller financing (ever)
Rule 3 - this is a Buying process, not a Looking process ie. if you are serious about buying a business, set yourself a timeframe in which to secure one
Rule 4 - Every business has secrets ie. make sure you do your homework, prepare properly & do a thorough due diligence
Rule 5 - There's no such thing as a 'perfect ' business (it does not exist) ie. determine whether existing issues are incidents or catastrophes; adopt an open-ended, but not reckless, attitude
Rule 6 - It's OK to overpay for the right business (& the wrong business is never cheap enough)
Rule 7 - There are more bad owners than bad businesses ie. there are many good businesses being run by the wrong people - these businesses can prove to be gems if you know how to uncover the drivers of revenue, how to improve & grow it
Rule 8 - Fall in love with the business AFTER you own it - remain objective at all times so that you can formulate an opinion based on factual data & logical thinking
Rule 9 - No one cares about your money or future like you do - validate absolutely everything the seller or agent tells you. It is always better to err on the side of conservatism when your money & future is at stake
Rule 10 - Buying a business is one thing; then you must run it ie. ask yourself the question ' am I going to enjoy running this business everyday ?' You must derive tremendous satisfaction from the business itself if you are planning to build it into something great.
Good luck & enjoy the ride !
