Seven Keys to Entrepreneurship through Acquisition

Entrepreneurship

Jan 7

Hello LinkedIn community, Deb here.

Today, let's dive into something close to my heart: the art of acquiring a business.

There's no one-size-fits-all approach, but I've distilled it into seven key considerations for those looking to embark on this entrepreneurial journey.

Fire In The Belly: Every successful entrepreneur needs a burning passion, not just for the good times but also for the challenging ones. Be a think outside the box leader and be ready to adapt.
Personal Cash Savings: Banks may fund up to 90% of your project, but your cash contribution matters. It shows commitment and foresight. Remember, it's not just about having enough cash down for the acquisition. It's about having a financial cushion post-purchase. Why? To ensure you can weather any unforeseen circumstances.
Good Personal Credit: This is a reflection of your financial responsibility. Banks need to trust that you're prudent with your finances. It's more than just paying bills on time. It's about not over-leveraging yourself in significant credit card debt before taking on a large business loan.
Sales, Marketing and P&L Savvy: Understanding the basics of sales, customer service, marketing and the business profit and loss statement is crucial. Know how money flows in and out of a business. A clear grasp of profit and loss statements is essential. This is the language of business.
Industry-Specific Licensing: Some fields and states require specific licenses. While you may already have them, there are workarounds if you don't. Some banks consider these workarounds when moving forward with a deal. Know the requirements and how to meet them by engaging an experienced business acquisition loan consultant.
People Skills: Businesses aren't just about numbers; they're about people. From employees to customers to vendors, effective communication is key. Adaptability in dealing with different personalities is vital. A good heart and an open mind can set you apart.
Collateral for Larger Loans: Most business acquisitions over $2 million, banks often require collateral like real estate equity from the business buyer. Understand the SBA terms and be prepared to meet these requirements.

An experienced business acquisition loan consultant has immediate access to top bank and non-bank lenders sourcing the best bank loan project, backed by the SBA to support your acquisition deal credentials.

Remember, every buyer, seller, and business is unique. Entrepreneurship through acquisition isn't cookie-cutter. Nor is SBA-backed bank or non-bank financing.

To navigate these waters, team up with an experienced business acquisition loan consultant. Like a guide in uncharted territory, they can connect you with the right lenders and structure a deal tailored to your entrepreneurship through acquisition success.