❌ The Number 1 Mistake Buyers make...

Good morning to all the business buyers, retiring owners and everyone completing deals in the next few days.

This week we had 345 new businesses listed.

As you know our mission is to help you find your perfect Business For Sale.

So today we break down:

• What is the #1 mistake buyers make when searching?

• Recommended book to read?

• Plus the most interesting new businesses this week

7 Most Interesting Business For Sale this Week:

Number 1 mistake business buyers make?

I talk to lots of buyers and the number one reason that it takes some buyers over a year to find their perfect business.

Is because they don’t have their search criteria crystal clear.

I was guilty of this too when I bought my first business. I was looking at every business under the sun. Why?

Because its fun to look at listings and see all the different types of businesses.

But here are the 3 big criteria that I think every buyer should have answers for at least one and maximum two of these to find their perfect business.

1. Size of Business?

How big of a business do you want to buy? I see lots of people put minimum profit amounts so that they can pay for their lifestyle.

This is a good idea and if possible don’t forget to add a buffer and an upper limit.

Some people may look at businesses from $10k to $3m profit. These businesses are very different and so have similarly different requirements to purchase.

2. Location of Business?

The simple way to think of this is by town, region, state, nation.

It can be tempting to look only at your home town. You know the area and its much easier to run a business nearby.

However in order to have enough deal flow you might need to expand your other two criteria of size and industry to help you find your perfect business.

If you are in a smaller town then searching in the region or state might give you the best results depending on your other criteria.

Also if you are looking at online businesses then these can be location agnostic allowing you to focus on your other two criteria.

3. Industry?

Is there one industry that you want to focus on? If you have experience in that industry it can be a great way to narrow your search.

But narrowing your industry too much with the location and size can mean that you wait longer and that time could have been spent growing a business rather than just searching.

Once you nail these big 3 criteria, you can plug them into the search and see how many results you get.

Most buyers get information on multiple businesses before choosing the final one to pursue. So you want to have enough opportunities to put into the top of your pipeline.

Remember you want to have minimum 1 of these criteria nailed, and maximum 2 of these criteria set.

Having 3 of these criteria set, will most likely mean your deal flow will be too small to find that perfect business.

Business For Sale around Australia

Want to be the first to get notified?

When a business that matches your perfect criteria gets listed.

Try creating a search alert here.

Add the keyword and price you are looking for on the left.

Then hit Save Search Criteria here:

Why is this amazing?

Now you can choose to get a daily or weekly email with all your preferred listings.

Hopefully this little trick saves you heaps of time.

And lets you keep track of businesses that are most interesting to you.

So you don’t have to worry about missing your perfect business getting listed.

Book Recommendation for Searching?

The one book I would recommend if you are looking at buying a business.

Is called Buy then Build by Walker Deibel.

It lays out all the things to consider before starting your search.

Including how to choose your search criteria.

And how to do due diligence and complete an acquisition.

It is a bit more American centric so not everything in the book is relevant. For example in the US they have an SBA loan to help buyers acquire companies.

But the rest of the information is really high quality and if you are serious about buying a business.

It should give you a helpful head start on what to expect.

Till next Tuesday!

Sam from Business For Sale

PS. I love hearing from buyers. What is your favourite part of the newsletter? What would you like to see more of?