Follow Obama's Strategy When Buying A Business

There seems to be a certain element of hope in the air with the pending inauguration of Barack Obama and the country can certainly use a shot in the arm. I get the sense that many people see this as an opportunity to unite all facets of America. It will be very interesting to see how things unfold over his term. While I admire his accomplishments, I do not envy the workload he has on his plate. However, I do believe that business buyers can all learn a great deal by his rise from relative obscurity to the holder of the highest office in the land.

Moreover, his election is a poignant example that prospective business buyers can emulate since much of what he faced is similar to what a new business buyer will encounter.

Obama did not possess the experience that Americans are used to in a presidential candidate, and so he had to prove himself time and time again to the voters. The same can be said for buyers. Most have never bought a business before and so they face a disbelieving group of sellers, brokers and bankers. It takes tenacity to prove you are worthy of their time. Only through your ability to demonstrate that you are knowledgeable about the process, and serious about getting a deal done, can you get the attention you need.

Obama redefined “messaging”. Never before has a political candidate done such a masterful job of getting his point across the vast numbers of potential voters. The lesson to business buyers is you cannot possibly expect a business to fall into your lap. You have to get the word out. You must search listings, visit businesses, contact every potential resource in your network and tap into their extended network. You may have to do direct solicitations to business owners once you know what type of business makes sense for you. In other words, you have got to expand your search to touch every possible opportunity.

Our next president did not get caught up in the minutia – he saw the bigger picture. Remember all those issues and accusations regarding his ties to Muslim extremists, or storylines that he wasn’t born in the USA, or his relationships with a convicted felon, or to radical clergymen? In prior times, any of these items would have undoubtedly exploded into media frenzy, and would have resulted in an irreparable scandal that would ultimately have sunk a lesser man’s aspirations. He paid no attention to them except to briefly address the questions, and then he marched on undeterred. He reminded me of the old cartoon of bullets bouncing off Superman.

You will also face an onslaught of issues when you buy a business; there is no escaping it. There will always be setbacks. Brokers who don’t call back, financials not being what they had been represented to be, businesses sold out from under you, challenges with financing, parties who twist the truth, lenders who do not believe you are creditworthy, friends and family who may not be supportive, and on and on the list goes. These issues derail many people. But truly enterprising individuals focus on the finish line, they know there is a greater good at the end, and they remain true to doing what has to be done to get there.

If you think buying a business is a walk in the park, you had better fasten your seatbelt. If it was that easy you would already own a business. The lesson is simple, stay focused, get used to setbacks, deal with the disappointments, and move on. If you cannot get past them, you are probably not suited to be a business owner altogether.

A crucial issue that comes shining through from Mr. Obama’s run for office and what you must do when buying a business is to surround yourself with the smartest people you possibly can. My initial perception of Obama was that he was an egotistical maniac. I felt he was a “my way or the highway” type person, and completely opposed to any views that were inconsistent with his own. I no longer hold that belief. Regardless of how he performs in the next four years, I admire him greatly for the team he has assembled at every step. Throughout his campaign, Obama’s advisors continuously proved their competency. Upon his election, he fast tracked his team to be sure he would hit the ground running, surrounded by an intelligent group of advisors. He has made certain to ramp up his knowledge on all issues with lightening speed. I have met some insanely successful people in my career and the common thread they all share is they are smart enough to know that they don’t know it all, and so they devour every available resource, and they get the best possible outside help they can afford.

That is precisely what you must do when buying a business. Don’t be a “know-it-all”. If you have never bought a business before, be smart enough to admit you have no clue what you are doing. Don’t try to guess your way ahead because it will not work. Having the right knowledge is the only way to successfully navigate your way through each stage of the business buying process. Don’t try to save a few bucks using an inexperienced attorney, or attempt to complete the financial review without an accountant. It is a ridiculous strategy that will bring dismal results.

Finally, the one area where every buyer can take an enormous lesson from Obama is his ability to set out and follow a plan. During his campaign his opponents’ strategy seemed to shift with the win, or be unduly influenced by the latest polls, but he carried on with unwavering fortitude. He has shown the same focus since the election and has stuck to what has clearly been a very specific plan when he assumes the Oval Office.

So too must you have a plan for buying a business. While you may not become the President of The United States, if you follow a proven plan, you will soon be the President of your own business.

Have a great week!

Richard Parker

Comments

[Mark]

The reason he paid no attention to the media frenzy, is that 95% of the media was actively trying to get him elected so they buried most of the negative stories.

Statistics showed that 80% of the news pieces done on Obama were positive whereas McCain was only 30%

Nuff said

[Scott Nei]

Wow...Just in time! I am currently 1/3 of the way through Mr Parkers "How to Buy a Business Book", and was derailed this very afternoon when I was told I have the best resume, the right down payment, but the lack of colateral by two banks, to even consider a loan for the business I want. This article supports my "keep going forward" attitude.

Thanks Richard!!!!!!!!!!!!!!!!!!!

[Bill]

I could have wrote a better blog about how to buy a business than that Richard. You totally took advantage of your readers to promote Barack (I wasn't born in this country) Obama. Biz Quest should proof read what they put in their newsletter going forward if they want to be taken seriously.

Nuff Said II

[Richard]

From Richard: Thanks for the great comments.

TO SCOTT:...with your attitude, you can't help but be successful, I'll bet on you anytime.

TO BILL: I have no clue what to tell you except that you missed the entire point of the article Secondly, it's time to get over the election and get on with the work at hand, much like a business buyer has to dust themself off from the small defeats and move forward to the finish line.