It’s the most amazing thing ever…
My hot tub — I got it about a month ago.
Every night, I hop into the 38⁰ C (100.4⁰ F) water and fire those jets at my aching body, courtesy of my two daily 75 Hard workouts.
It’s a lifesaver for me.
Last night, it was just me and Josh. We got into a deep conversation about his schooling.
Next year he needs to select the optional subjects he will study for his General Certificate of Secondary Education (GCSE) exams.
He’s 13 and will take the exams when he’s 16.
In the U.K., in addition to the five core GCSE subjects, you get to pick five optional ones — and there are TONS to choose from.
Josh asked me “Dad, which should I pick?”
I asked him what he felt he was amazing at and what he loved to study.
For him, those are Spanish, History, IT and Art.
Easy choices then.
But what about the final one?
Naturally, I asked him what he wants to do for work when he’s all grown up.
He told me either something in sports (he’s a natural athlete) or technology (he’s an avid YouTuber).
Of course, I recommended Business Studies but I think he’s leaning towards Physical Education.
It’s his choice. He can study business later in his life if he wants to. (I never took a business class until I got an MBA in my late 20s.)
He’s all fired up, excited about his future school years because now he has a PLAN.
He knows WHAT he wants and WHAT he needs to do to get there.
When it comes to doing deals, you also need a plan.
What do you want?
We have talked a lot previously about your WHY.
I’m not going to repeat that today, but let’s dive deeper into your WHAT.
Your WHAT needs to map to your desired future outcome combined with what you LOVE and are GOOD at (the two are often closely aligned.)
This all starts with the role you want to play.
During the business buying process, your role is to be the dealmaker.
Once the deal is closed, you can pick any role you want because it’s YOUR business.
You can be the owner-investor, working only on strategic tasks like vision and planning. (Working ON the business not IN the business.)
You may want to be the owner-operator, the GM. The person driving the bus. Nothing wrong with that.
Next, it’s critical to pick the right sector.
Why is this important?
When it comes to a leveraged deal — buying a business using other people’s money — you need to have influence.
If you are currently a sales person for an IT company, go and buy a small technology business… Don’t buy a vineyard.
If you are an engineer, go and acquire a small engineering business… Don’t buy a gas station.
If you are a manager in a large PR company, buy a small PR business… Don’t buy a restaurant.
If you’re a web designer, go and buy a small web-design firm… Don’t buy an architectural firm.
It is possible (although rare) that you are really good at something but DON’T have a passion for it.
Remember the first example?
One of my students a few years ago was a six-figure earner on IBM’s sales team… He was amazing at sales and would have nailed it buying a small IT business.
But he wanted to get out of the IT sector. His passion was wine and his dream was to acquire a vineyard in California.
It’s one thing to love wine, but owning and operating a vineyard is a whole different ball game.
He was an IBM dealmaker. Closed tons of massive deals. He would be brilliant at buying businesses. Running a vineyard? Tough in my opinion.
So I advised him to partner. Find someone who really knows winemaking to lend credibility, knowledge and be the safe pair of hands that will help close the deal.
In summary, we all need a plan… especially when buying businesses.
My advice: Stay in your lane. Leverage what you are good at and are passionate about. If those don’t align, partner with someone to complement what you bring to the table.
Until next time, bye for now.