Mindset Makeover: Overcoming Entrepreneurial Challenges In Business Acquisitions

May 31, 2023 •

I can think of only one good excuse why you shouldn’t pursue business ownership:

You don’t have the drive. You don’t actually want to own a business. We choose our hard in this life, and this is not the hard you’re going for.

But, I’ve NEVER heard a good excuse from someone who wants to buy a business.

If you’ve decided small business acquisition is your path to financial freedom, then your reasons for not doing it come down to one thing. Fear.

What destroys fear? Knowledge and action.

For today, let me give you a mindset makeover and bust the 6 most common biz-buying excuses.

In 5 minutes or less:

“My W-2 is just safer”
“I’ve never run a business”
“I don’t have the capital”
“I don’t have the time”
“How would I even find a business?”
“I don’t have the expertise”

“My W-2 is just safer.”

We call these golden handcuffs. Just shiny enough to let us forget we’re not in control.

We’ve been conditioned about the security of a W-2 job. They tell you the safe path is to diligently climb the corporate ladder, then retire in comfort.

The uncomfortable truth: Job security is a flimsy illusion.

Corporate downsizing, economic downturns, and industry disruptions can knock you off that ladder in a heartbeat.

Instead of relying solely on a job, consider small business acquisition as a means to build your own security. Many owners in our Contrarian Community group still work their fulltime (or parttime) job while a hired operator handles the day-to-day. Your W-2 doesn’t have to be the enemy of your business ventures.

But it doesn’t need to be the hero either.

In a survey of small business owners, 45.9% of them held a corporate job before running their business. Think they wish they’d stuck with that job a bit longer?

Nope. 85.4% of them regretted not becoming an owner sooner.

Will future-you wish past-you had committed to a business already?

We’ve had people (like Paul and Mary) keep their jobs while adding a couple of laundromats to their asset column and income stream. We’ve also had people (like Renan and Brett) make a business purchase that supported them quitting their W-2 job altogether.

You get to choose your path, but you have to take the first step.

“I’ve never run a business.”

It’s an easy excuse for those who’ve yet to step into acquisitions.

Fear of the unknown is natural, but the truth is: nobody starts as a business guru.

Every biz owner had to start somewhere.

Some of the biggest names in entrepreneurship built before any formal training or professional experience: Walt Disney, Andrew Carnegie, Thomas Edison, Arianna Huffington (yes, that Huffington).

Past business experience certainly can impact business success. But just as important are the skills and traits a future owner brings to the table.

Studies show the following traits most often correlate with business success:

need for achievement
generalized self-efficacy
innovativeness
stress tolerance
need for autonomy
proactive personality

Whether these traits are intrinsic inside you or skills you’ve developed throughout your career, this is what makes you a successful business owner.

Your W-2 job has given you a toolkit of skills – leadership, problem-solving, communication – that are put to the test on the entrepreneurial battlefield. Don’t think inexperience holds you back.

The most successful entrepreneurs are the ones willing dive in headfirst. The ones who desire to win, learn as they go, and adapt like champions.

“I don’t have the capital.”

Contrary to popular belief, buying a business doesn’t necessarily require a huge amount of upfront capital.

One beauty of business acquisitions is the creativity and flexibility available in financing structures:

SBA loans
Raising funds
Full or partial seller financing
Partnerships with a trusted party
Trading services for partial equity
Smaller-scale acquisitions and ventures
Earn-outs where the company’s profit pays out to the seller over time

You’d be surprised at how little cash it can take to make a business yours. Explore your options before you use this excuse.

Our Contrarian Community members have done plenty of deals with unique financing. From Lloyd buying a laundromat with all new equipment financed with only 5% down, to Renan buying an $8 Million home services company with 100% seller financing.

Funding a SMB acquisition is only limited by your imagination and negotiation skills. Find out what’s important to the seller and what they need to exit. It may not be the big wad of cash you think.

“I don’t have the time.”

If you’re working a full-time job, time constraints are a valid concern.

But there’s truth in the saying: “Where there’s a will, there’s a way.”

Take a hard look at your schedule, identify the pockets of potential, and seize them. Steal time before and after your 9-5.

Assemble a team to decrease the load of the acquisition process: a great attorney, broker, and accountant will not only enable you to buy the best business… But they’ll allow you to do it without breaking from your W-2.

Remember, Rome wasn’t built in a day, but it damn well was built while juggling multiple commitments.

“How would I even find a biz?”

There are lots of options for business sourcing: marketplaces, brokers, and off-market searches.

Online marketplaces can be a simple entry point for new buyers. Just to name a few:

Flippa
BizQuest
Bizbuysell
Acquire.com
BusinessForSale

You can also get connected with brokers. Think of it like using a realtor to help find a house. They have connections and information that online business-buying platforms just don’t have.

But off-market opportunities can be the cheapest and offer the most growth:

Spend time where small business owners (think retirees) might be. Get inside their network.
Utilize SMB resources, like local libraries, chambers of commerce, and SBA offices
Find local businesses on google. Visit them and meet the owner.
Scrape data from online to cold-call.

Our favorite tool for off-market business-buying is Bizscout. Based on your zip code and the type/industry of business you want to buy, they give you the data of hundreds of solid leads to reach out to.

Dip your toe into acquisitions, and you’ll quickly find that buyable businesses are all around you.

“I don’t have the expertise.”

You don’t need to be a certified genius to kickstart your biz-buying journey.

Worried you can’t own a plumbing co if you’ve never been a plumber? Stretch your hiring muscles and find a competent operator to take over where your expertise leaves off. (Better yet: make an existing operator criterion for your buy box.)

Think you don’t have what it takes to even be an owner? Scroll back up to the “I’ve never run a business before” excuse. Then come back here, and remember you’re not an island.

You aren’t the first person to ever run a business. The SMB owner community is a well of expertise – draw from it.

Rub shoulders at industry events, and join business communities (like our Contrarian Community, or local groups).

Tap into the collective wisdom of like-minded individuals.

Enough excuses. Let’s start.

Do you really want the freedom of business ownership?

Is small business acquisition the hard you want to choose?

Or will you opt for the comfort and false-security of your 9-5?

Because I’m not buying your excuses. And you shouldn’t either.

I give you full permission to start. Start without all the answers (you can’t get them). Start before it feels comfortable (it never will). Start when you’re not an expert (or else you’ll never become one).