I just finished watching an awesome documentary on Netflix — The Last Dance.
It charts the amazing success of the 1990s Chicago Bulls. The franchise won an unprecedented SIX NBA World Championships inside of an eight-year stretch, taking home the trophy THREE times in a row… TWICE.
Michael Jordon — the Bulls’ star player, affectionately known as MJ — played six out of those eight years…
Every season he played, the Bulls won the championship. The two seasons he didn’t play, the Bulls didn’t even come close to winning.
(You may remember that MJ took an 17-month hiatus from basketball to play baseball for the Chicago White Sox Double-A affiliate and then returned to the NBA.)
It doesn’t take a rocket scientist to figure out that MJ was everything to the Bulls. He was the focal point — the best player, the leader and the absolute sporting king of mindset.
However, without the team AROUND him, the Bulls probably wouldn’t have even made it to the playoffs.
Scottie Pippen, the legendary small forward and perfect sidekick…
Steve Kerr, an amazing point guard who until 2010 held the NBA record for highest three-point percentage in a season at 52.4%. He’s now the head coach of my team — the Golden State Warriors.
Dennis Rodman, the bad boy, the maverick, the controversial character who NBC named “arguably the best rebounding forward in NBA history.”
And Phil Jackson, the coach who galvanized all the talent on his team and set them up for success.
Jackson had the strategy and the game plan…
MJ had the experience and the leadership mindset on the court…
And the rest of the team had their individual skill sets…
With all these incredible star athletes combined, it’s no wonder the Bulls brought home six championships.
Now, let’s apply this concept to buying a business.
Who are the players?
I’m your coach. I have the strategy and the game plan. Use my methods, tools, tactics and experience to get your deals over the line.
You are MJ — the leader of the game. The person everyone looks to.
Pippen, Kerr and Rodman are the star players on your deal team.
Pippen is your certified public accountant (CPA). You need him for taking care of the financial due diligence on the business you want to buy.
Having a CPA on your team early will also generate deal flow for you. CPAs have access to off-market deals — business owners who want to sell but haven’t yet taken the step to list the business with a broker.
Kerr is your lawyer. To close a deal, you need a lawyer to do TWO things…
- Legally vet the business before you buy it and ensure it’s safe to do so (we call that legal due diligence).
- Take care of the legal paperwork that transfers the ownership of the business from the seller to you (as the new owner) on the day you close the deal.
If you are buying a business in a sector you don’t have a ton of experience in or truly understand, Rodman can be your business-buying partner.
Let me be clear… for your first deal, it’s really important to stay in your lane. But sometimes you will find a business you are so passionate about — yet you don’t have the relevant industry experience to a) convince the seller and financiers you are the safe, trusted pair of hands and b) move the needle as the new owner of the business.
In this case, go partner with someone who has those skills and credibility.
Your industry partner will lend significant credibility to the deal AND value to the business you will then co-own.
Even if you have to partner 50-50 and give up 50% of the equity, it’s better to live your passion and own 50% of something versus 100% of nothing.
You don’t have to buy businesses on your own.
In fact, you can’t. It’s virtually impossible.
You need a deal team to handle the financial and legal due diligence, do contracts and, in some cases, give your deal and future business some credibility if you are not buying in a sector you know.
Remember, YOU are the MJ of your deal. Lean on me for all the coaching you need, and pick your Pippen, Kerr and Rodman wisely.
Closing your first deal will feel as special as the Bulls winning a world championship.
How will you celebrate?
Until next time, bye for now.
Editor and co-founder, Dealmaker Wealth Society
P.S. You need to start building relationships with deal intermediaries from day one. Not only can they help you find off-market deals for increased deal flow, but having a deal team in place when a seller accepts your offer helps you get the deal over the line that much faster.
Dealmaker Launchpad is a one-week program that will get you in the dealmaker mindset… help you set up your deal origination funnel… AND put you in a position to start connecting with sellers and deal intermediaries alike.
Jump-start your business-buying journey with this seven-day course today! Get details here.