Posted by Steven St on July 19, 2008 at 10:59:25:
In Reply to: ok so here's step one posted by StevenS(CPA) on July 19, 2008 at 10:29:22:
I want to explain what I consider to be the difference between a deal maker and a business buyer.
To me they are two totally different people.
The Business Buyer - A typical business buyer is a person who has worked in a particular field for 5,10,15 years or more, has bought his home and has equity, has other assets, great credit, and is looking to buy a business in his field of expertise.
The business buyer typically ends up leaving his comfortable 120k, 40 hour a week job to buy a business making 120k working 80 hours a week and hoping that he'll potentially make more improving the business.
Most books in book stores are tailored toward the business buyer. I am not a business buyer. I am a deal marker.
The Deal Maker - The successful deal maker usually has a team made up of a top notch accountant and attorney, financial partners with deep pockets, maybe one or two very experienced people in a particular field to act as managers or officers of a company and a wide and deep slate of advisers and agents working on their behalf.The deal maker isn't looking to replace his 40 hour a week job for an 80 hour a week job. The deal maker is looking for a profitable deal.
Warren Buffet and Donald Trump are deal makers. Warren Buffet looks at thousands of companies and isn't an expert or have years of experience with any one company, but he puts together strong financial and management controls so he doesn't have to work 80 hours for every company he buys.
True deal makers do not look for companies to run they look for companies they can own and make a profit.
Now many business brokers and books will tell you that "absentee owners" never make as much as hands on owners. And in some cases they are right. But deal makers are not looking to buy one business and make a killing. True deal makers are looking to get the greatest return on their investment and move on to the next deal.
Outside of Rich Dad, Poor Dad, Buffet Books or Trump's collection most business buying books are for business buyers. What I'm commenting on here is not how to be a business buyer.
But this is just my opinion, I look forward to hearing others opinion on this topic.
- that's it exactly ken in sc 06:56:03 07/20/08 (0)
- The only thing Steve is..... IB (NJ) 16:53:11 07/19/08 (8)
- ReverseEndorsements Kenneth Hocking 11:33:27 07/20/08 (7)
- Re: ReverseEndorsements IB (NJ) 20:45:35 07/20/08 (0)
- Re: ReverseEndorsements StevenS(CPA) 17:06:17 07/20/08 (5)
- Criteria KJ 17:38:05 07/20/08 (4)
- Re: Criteria StevenS(CPA) 09:31:52 07/21/08 (3)
- Criteria Nike 09:50:16 07/21/08 (2)
- Nike??? StevenS(CPA) 15:08:44 07/21/08 (1)
- Oh, don't be so bothered Wayne-NC 09:44:36 07/23/08 (0)