Buying another business… why?
Originally sent exclusively to The Letter subscribers on December 23rd. Want to be the first to get my personal newsletter in your inbox every Monday at 7am? Subscribe for free here.
Opportunity came knocking on my door this week. Again.
At this rate, I’m going to need some more doors!
It’s not the right time for this opportunity – is it ever?
I have a lot going on, and I don’t have the spare cash for this opportunity.
My senses went into overdrive on this one. I knew I would have to make it happen.
I’m faced with crossroads like this every month; let me walk you through my mindset.
I see the choices as follows:
The pleasure of comfort: just walk away, put your feet up, and enjoy the zeitgeist we have.
The pain that follows from allowing comfort – for me, I fear more than anything this little quote: “the shoulda, woulda, couldas” – it’s dreadful.
The short-term pain of action taken, which will lead to another beautiful addition to our ecosystem (here’s where I have landed).
Questions you may want to ask yourself – and me, to myself – follow this trend:
Why another business?
Why do more?
The answer is always “Why not?” followed by “Why not see what you can become?”
The content we create – short form, letters, podcasts, YouTube and books keep serving me hot cakes.
And, boy oh boy, when they smell good, I want a taste.
Top tip: If you’re not considering content marketing for your business, please do.
Content is causing the knocker on the opportunity door to well and truly pay its way.
I honestly can’t keep up with just how many great businesses are out there with fed-up owners who want nothing more than time and comfort.
I want to be a winner, and winners thrive under pressure.
I see the world serving up three types of people:
Lazy – looking for excuses.
Average – looking for acknowledgement.
Winners – looking for pressure.
Winners love pressure; we seek it.
Achievement is brushed off like making a cup of tea.
Many cannot understand it because they operate in a lower level of thinking and action.
For all my gung-ho approach, I do say no to many knocks on the opportunity door, but some just make so much sense.
When they do, I decide to go to work.
When a great opportunity knocks, I have found the world is ready to help.
Take that help. No one is self-made.
I have done so many deals now and have extricated myself from numerous traps in my jaunt as an entrepreneur.
I’ve been in circumstances where most would simply roll over and die, taking the easier route.
I’ve collected numerous contacts, banks, and investors, and every year that little black book becomes more like a giant encyclopedia of people who are prepared, at the drop of a hat, to help me with my endeavours.
Andrew, my wise friend and mentor, always says,
“Good things happen to good people.”
If you do your best, treat the world well, and add some smartness to the mix, the world will help.
Often, people work hard without being smart, and rarely do they move forward.
Often, smart people lack kindness – you need both to get help.
Humans love helping smart, hard-working, kind people – it's an irresistible date.
Opportunity comes to all of us; the more you let it in, the more it comes knocking.
I never tell people to send me deals – they just do.
This opportunity was presented by the Managing Director of a very successful company I’ve never met, who has consumed countless hours of my content.
He simply said, “James, I work for a company; it needs you to save it,” and “you won’t need much money to do it.”
Side note here:
I have done turnarounds many times; this isn’t a turnaround; it’s the good bit from a spider web of companies – almost like a carve-out.
I was a customer of this carve-out, and I knew it well.
While picking it up for little or no money may be what it says on the tin, it rarely is.
Cheap, yes. Free, no.
Lots of time needed – guaranteed (time is cash).
It’s never free; nothing is. It’s time, effort, and energy – at the very least – and this could be a distraction, which is the most expensive cost ever.
I didn’t want to buy this opportunity and dampen my cash flow; the deal needs to be quick.
Too quick for a bank, and even though I could do it standalone, I don’t want the pressure of tight cash flow.
I am currently finalising a big deal on another transaction, so this was one step too far for me to do alone with my own cash this month.
So, action stations are go, go, go.
This week, I discovered that the network around you has so much money making pitiful but safe returns in the bank.
Like I say, people like helping good people for a bit of interest.
I clearly explained the deal, and within four calls, I had committed funds of £500,000.
I could have got more. I offered them 1% a month and my personal guarantee.
They didn’t require this, but I provided it.
It took me a lot to write this; it’s personal in many ways, but I thought it would be helpful to you.
I have a significant property portfolio worth many millions of pounds; I have great bank relationships, and I can borrow easily.
The truth is people have always stepped into help if I ask. Try it.
I have a profitable business and much around me.
The younger me would have stretched my cash flow to make this happen.
Not now. I would rather borrow at higher rates as long as the opportunity stacks up.
I figure that if you can acquire a good business and you know your onions, you have those 10,000 hours of practice and skill in your toolkit.
I say – go for it.
If you know in your heart and mind, that you can take the opportunity and win, and you’re very sure of this, don’t let your lack of resources hold you back.
Live by this quote:
“It’s not your lack of resources that stops you – it is your lack of resourcefulness.”
This deal is packed with a good business and talented people that can join our existing empire.
I’m always recruiting, and acquiring via business acquisition with embedded brilliant management is a lottery win for us entrepreneurs.
Having a brilliant management team is right up there with cash flow, and having them paid for by acquiring a business – well, what’s not to like?
As this year draws to a close and St. Nick prepares to climb down the chimney in just two more sleeps, I wish you and yours a very Merry Christmas and the best New Year ever.
As always,
To your continued success,
James
PS: When I was a little boy, I used to get bullied a lot, so my dad sent me to karate lessons. However, because I’m dyslexic, I ended up going to karaoke lessons.
Armed with my singing abilities, I took on the bullies. I got through the first verse of “I Will Survive” by Gloria Gaynor before they kicked me in the nuts . Alas.
P.S. Buying Business is on the 25th March 2025 and I’d love to see you there. Find out more here.