How to Buy a Business
Who Does the Broker Represent in a Sale?
A common mistake that buyers make is to assume that a business broker either represents their interests or is neutral at the very least.The truth is that if you contact a broker about one of his listings, he represents the best interests of the seller. Indeed he is legally obligated to do so.Keep this in mind when dealing with brokers and keep your cards close to your chest. Anything you reveal about your weaknesses as a buyer will be used to screen you out as a serious candidate.
How Do You Start Building Great Wealth?
If you want to build something great in the world of business, you basically have two choices.
One, you can wait for the next Google-type idea to come along and jump aboard–that is if they let you. However, this is a long shot. There’s only one Google, only one Microsoft, only one Apple, etc. Yes, they are all replaced eventually by an upstart but it’s a bit like waiting for Halley’s Comet to come along. In the meantime, life is passing you by.
Two, you can accept that much of business, just like sales, is little more than a numbers game. If you’re a so-so salesman who just happens to make a lot of sales calls and presentations, you are highly likely to do well over the long run. This approach holds true in most of life. Recall the famous story of Babe Ruth who in his day was not only the home run king but also the strike out champ. In fact, he struck out twice as many times as he had home runs. However, history remembers him for his successes not his failures.
Warren shares some valuable tips on buying companies that are still relevant for smaller players. Here are 12:
“Cash combined with courage in a time of crisis is priceless.”
“Price is what you pay. Value is what you get.”
