A Very Slow Second Step

In spite of popular belief, and in spite of the fact that 1.5 months have passed since I took my first step (first entry) in searching for a small business , I am sincere in my desire to buy a business. Since that time I have completed the book "How to Buy a Business", and a short course on "Buying a Small Business". For that course I explored how to find a distressed company, and what is required to turn it around. If I find a such a company, and feel up to the challenge, I may later on this Blog go into what I found out. For now I will share what's next... my search plan for the month of April.

April Plan

1. Complete self assessment

2. Determine scope for search:

3. Develop purchase criteria / A model of business

4. Create a “Why Me?” statement

5. Make a list of investors I would call for a combined total of $100K

6. Find 20 Businesses that look interesting enough to pursue

7. Perform non-financial & financial/valuation analysis on 20 businesses

8. Share Analysis with Babson Professor, Professor Mulvaney

9. Narrow down the 20 to those that are the best fit

10. Develop a short guide sheet for broker calls

11. Call the brokers for each business of interest

12. Narrow deals down even more

13. Determine best structure for deal – Meet with Prof Mulvaney

14. Talk with 2 different types of bankers

15. Write “Letter of Intent” – hopefully on several deals

16. Negotiate

17. Due Diligence on at least one business

18. First Draft of Purchase Agreement

19. Negotiate

I will do everything in my power to make it through all 19 steps, but realize how difficult it will be to get past step 14. It goes without saying that a "Letter of Intent" will not be written unless I am confident that I have found something that is a good fit, and matches my career aspirations. With the confidence that I have found a high potential opportunity, it will thereafter just be a matter of putting in long hours and putting my education to use. I have found this is never a big deal for things I really want.

The Great Unknown

One and a half years ago I arrived at Babson College with intentions of launching a promising start-up. I didn't know in what industry, what market, how it would be done, or with whom; all I knew was it was going to be big. I went forward in faith, with the hope that over the next 2 years something might grab me; that I might I have that romanticized "Ah-hah" moment that all the great entrepreneurs seem to have. So with this mind set, It was off into the exciting and great unkown.

Instead of figuring out what I want or am about, I have somehow managed to collect more "unknowns". I have collected interests in more disciplines, industries, and sectors, but nothing has yet to grab me. So my passion continues to live somewhere in the ethos; consisting both of effecting a lot of lives for good, and making a lot of money. I've been taught ever since I arrived at Babson to "embrace ambiguity". That must mean I've been a great success, because, not only have I embraced it, I have grown it. Three months left till graduation, and I think I have more options for a career, and more approaches toward becoming an entrepreneur than I ever knew existed. One of the more recent additions was the option of entrepreneurship through acquisition. In fact, the purpose of this blog is to document my journey toward finding a small business that I want and can buy. The purpose of this particular entry is to kick that process off, and to invite all readers to join me in finding a pearl by sifting through all the grey.