___ Concepts We Can Learn About _____ From How2Exit's Interview W/ Daniel Lee - Watch Here
Here is what my team and I learned from this interview: (These are notes from team members, writers, sometimes AI, and even listeners who submitted what i learned loosely edited and shared here) - If it seems a bit unrefined, you're reading our notes, so. yeah. -Ron
Concept 1: Take The Leap Into Entrepreneurship
Taking the leap into entrepreneurship can be a daunting task, but with the right guidance and knowledge, it can be an incredibly rewarding experience. Daniel Lee is a perfect example of someone who made the transition from corporate America to owning his own business. After spending 15 years in the corporate world, Daniel decided to take a new path and become an acquisition entrepreneur. In 2020, he purchased Windura, a premium window and door replacement company in the Kansas City area.
Daniel’s journey to entrepreneurship began when he applied for a regional sales manager job. This move was a huge risk for his career, but it gave him the opportunity to get out in the field and work with insurance agents. During this time, he became fascinated with the inner workings of small businesses and was inspired to take the leap into entrepreneurship.
Daniel cites the difference between an entrepreneur and everyone else as the courage to take risks and believe in oneself. After three years on the sales side, he had the confidence to start looking for a business to buy. He followed the advice of Walker Dybul’s book “Buy Then Build” and found Windura. Despite the rocky times of the COVID-19 pandemic, Daniel was able to purchase Windura by the end of 2020.
Daniel’s story is a great example of what it takes to make the transition from corporate America to owning a business. It is not an easy task, but with the right guidance and knowledge, it can be incredibly rewarding. If you are considering taking the leap into entrepreneurship, it is important to do your research, find a mentor, and believe in yourself. With the right attitude and dedication, you can be successful in your entrepreneurial endeavors.
Concept 2: Trust And Connection Matter
Daniel’s story also highlights the importance of trust and connection in business. He talks about how he created a one-page bio about himself and had all the things a business broker would care about. He also had a target statement, which outlined his experience, strengths, and financial capabilities. He was also able to connect with a lawyer, CPA, small business banker, and SBA banker, which helped him to find the right business for him.
Daniel also talks about how he was able to build a connection with the owner of the business he ended up purchasing. They had similar values and quickly developed a sense of trust between them. This trust enabled them to work together to hammer out the details of the deal. Daniel’s story shows that trust and connection are essential for successful business transactions.
In order to be a successful entrepreneur, it is important to have trust and a connection with your business partners. It is also important to build relationships with people who can provide you with guidance and advice. Having a mentor can make the transition from corporate America to owning a business much easier.
Trust and connection matter when it comes to business. It is important to do your research, find a mentor, and build relationships with people who can help you succeed. With the right attitude and dedication, you can be successful in your entrepreneurial endeavors.
Concept 3: Acquire To Scale Quickly
Acquiring businesses to scale quickly is one way to grow a business. It is a strategy that has been used by many successful entrepreneurs. Acquiring existing businesses allows entrepreneurs to quickly gain customers, increase market share, and build their business faster than if they had to start from scratch.
When considering an acquisition, it is important to understand the business you are buying. You should do your due diligence and research the company’s financials, customer base, and competitive landscape. It is also important to understand the culture of the company you are buying. This is especially important if you are looking to acquire a business in a different industry. A culture clash can lead to problems down the road.
It is also important to understand the market you are entering. You should research the competition and understand the different strategies they are using to succeed. This will help you to develop a competitive advantage and create a unique value proposition for your customers.
Finally, it is important to have a plan for how you will scale the business. This will involve understanding the customer base and developing a strategy for reaching new customers. It is also important to have a plan for how you will manage the business after the acquisition. This may include developing a team of employees, developing a marketing strategy, and finding ways to increase efficiency.
Acquiring businesses to scale quickly is a great way to grow a business. It allows entrepreneurs to quickly gain customers, increase market share, and build their business faster than if they had to start from scratch. However, it is important to understand the business you are buying, the market you are entering, and have a plan for how you will scale the business. With the right attitude and dedication, you can be successful in your entrepreneurial endeavors.
Concept 4: Do Your Research
When it comes to buying a business, it is essential to do your research. This includes researching the industry, competitive landscape, and the business itself. Knowing the industry and competitive landscape will help you understand the potential for growth and how to best position your business for success. Additionally, researching the business itself is important. You should look at the financials, customer base, and employees to understand the potential of the business. If the business has a strong customer base and employees that are dedicated to the success of the business, it could be a great opportunity.
It is also important to consider the culture of the business you are buying. If the business is a mom and pop shop, it may have a culture that you don’t want to disrupt. However, it is possible to find businesses that are willing to be acquired and still keep their culture intact. It is important to look around and see what is available and consider creative financing structures to make the acquisition possible.
In the tech space, it is common for large companies to acquire smaller companies for their talent. This is known as acquihire. It is possible to find smaller businesses in your area that have employees that would be glad for someone to take over. This could be a great opportunity for you to acquire the business and use the employees to scale quickly.
Finally, it is important to consider how the business you are acquiring can be used to upsell and cross-sell products and services. For example, if you are buying a window and door business, you could acquire a pest control business to provide a service to customers. This could be a great way to increase sales and provide a valuable service to customers.
Overall, doing your research is essential when it comes to acquiring businesses. It is important to research the industry, competitive landscape, and the business itself. Additionally, it is important to consider the culture of the business and how you can use it to upsell and cross-sell products and services. With the right attitude and dedication, you can be successful in your entrepreneurial endeavors.
Concept 5: Buy Then Build Process
The “buy then build” process is a popular strategy used by entrepreneurs when they are looking to acquire a business. This process entails researching the industry, competitive landscape, and the business itself. It also involves understanding the culture of the business and how you can use it to upsell and cross-sell products and services. This process can be very useful for entrepreneurs who are looking to acquire a business and then build it up to be successful.
In the podcast, the speaker discussed the “buy then build” process that he used when he acquired his business. He first did his research on the industry, competitive landscape, and the business itself. He also looked into the culture of the business and how he could use it to upsell and cross-sell products and services. He discussed how he had a close second runner-up, but ultimately chose the business he acquired.
The speaker also discussed the steps he took after acquiring the business. He focused on formalizing structure, creating IT systems, and documenting processes. He also focused on digital marketing and how to show up in search. He discussed how he was working with a marketing agency to do geo-fencing, which is where ads only show up in neighborhoods they are wanting to do business in. He also discussed targeting certain neighborhoods and zip codes that they work regularly in.
Overall, the “buy then build” process is an important strategy for entrepreneurs to consider when looking to acquire a business. It is important to do your research on the industry, competitive landscape, and the business itself. Additionally, it is important to understand the culture of the business and how you can use it to upsell and cross-sell products and services. With the right attitude and dedication, you can be successful in your entrepreneurial endeavors.
Concept 6: Secure SBA Loan Before Purchase
One key step in the “buy then build” process is securing an SBA loan before purchase. The Small Business Administration (SBA) offers a variety of loan programs to help entrepreneurs finance their business purchases. These loans are designed to provide businesses with the capital needed to purchase, expand, or refinance existing businesses.
In the podcast, the speaker discusses his experience in securing an SBA loan for his purchase. He first did his research to understand what he wanted and what he could bring to the business. He then identified a business that fit his criteria and had room for improvement. He also looked for a business that had an established sales routine and was in need of operational efficiency.
The speaker then proceeded to secure an SBA loan. He started by seeking a referral to an SBA lender and meeting with them ahead of time. He then provided the lender with the necessary paperwork and financials to prove the business’s ability to repay the loan. He also had to provide personal financial information in order to qualify for the loan.
After the loan was approved, the speaker was able to use the capital to purchase the business. He was also able to use the loan to finance improvements to the business and increase operational efficiency. The speaker also notes that the SBA loan process can be a bit of a pain, but the benefits of having access to capital and the due diligence done by the SBA can be invaluable.
Overall, securing an SBA loan before purchase is an important step in the “buy then build” process. It can provide entrepreneurs with the capital needed to purchase a business and make improvements to increase operational efficiency. It is important to do your research and understand the loan process before applying for an SBA loan. With the right attitude and dedication, you can be successful in your entrepreneurial endeavors.
Concept 7: Know Your Financials
Knowing your financials is an important part of the loan process. You should be able to provide your lender with information about your assets, home, and financial situation. You should also be prepared to answer questions about your income, current debt, and credit history. Understanding the loan process and having the right information can make the process smoother and help you get approved for the loan.
In addition to understanding the loan process, it is important to be prepared for the paperwork. You should be ready to provide the lender with the necessary forms and documents. It can be time-consuming and tedious, but it is necessary to provide the lender with the information they need to make an informed decision.
It is also important to be aware of the current market conditions. During the COVID-19 pandemic, many banks had to write down their loans due to the high risk of bad debt. This meant that banks had limited capacity to process SBA loans. It is important to research the lenders you are considering and make sure they have the capacity to process your loan.
Finally, it is important to be prepared to make your case to the lender. You should be able to demonstrate your financial capability and explain why you are the best candidate for the loan. It can also help to have someone in the bank who can speak on your behalf. Having a headshot and a brief explanation of who you are and why you are the best candidate can also help your case.
In conclusion, applying for an SBA loan is a complex process. It is important to understand the loan process and be prepared with the right information and documents. Knowing your financials and being aware of the current market conditions can help you get approved for the loan. Additionally, it is important to be prepared to make your case to the lender and demonstrate why you are the best candidate for the loan. With the right attitude and dedication, you can be successful in your entrepreneurial endeavors.
Concept 8: Stay In Your Lane
The phrase “stay in your lane” is a common piece of advice given to those looking to secure an SBA loan. It is a reminder to focus on a field that you have experience in and know well. This is important because the SBA will look at your background and experience to determine if you are the right person for the loan. They want to make sure that you are knowledgeable and capable of running the business successfully.
In the podcast, the speaker shared his experience of obtaining an SBA loan. He had to demonstrate to the bank that he was qualified to own and run the business. He had to explain how his business mind would help grow the business and how he planned to transition the ownership. He also had to provide a quality of earnings report from a CPA firm to prove the accuracy of the books. All of this information was necessary to prove to the bank that he was the right person for the loan.
The speaker also shared how he overcame the challenge of obtaining the loan. He had to be persistent and prove to the bank that he was knowledgeable and capable of running the business. He also hired a CPA firm to do a forensic accounting analysis and produce a quality of earnings report. This helped provide an independent validation of the books.
The speaker’s story is a great example of why it is important to stay in your lane when applying for an SBA loan. He was able to demonstrate that he had the necessary experience and knowledge to be successful. By staying in his lane and focusing on a field he was familiar with, he was able to get approved for the loan.
It is important to remember that the SBA loan process is complex and can be difficult to navigate. However, if you are prepared and have the right information and documents, you can be successful in your endeavors. Staying in your lane is key to getting approved for the loan and being successful in your business.
Concept 9: Don't Give Up On Success
My recent experience with the SBA loan process was a great example of this. I was working with a client who had a business that needed a loan to expand. After being denied by the first bank, he was ready to give up. However, I encouraged him to keep going and to make a list of all the banks in town that could do the loan. After evaluating all the options, we found the right bank and were approved for the loan.
This experience taught me that perseverance is key to success. Even when the odds seem stacked against you, don't give up. Just like the entrepreneur spirit, you have to keep going one step further than the competition. You have to be willing to put in the hard work and dedication to make your dreams come true.
It is also important to remember that failure is part of the process. You may not succeed the first time, but that doesn't mean you should give up. Instead, use the failure as a learning experience and adjust your strategy. This way, you can be better prepared for the next time.
Finally, it is important to remember that success is not a one-time event. It is a process that requires hard work, dedication, and perseverance. Don't give up on success, no matter the odds. With the right strategy, you can achieve your goals and make your dreams come true.
Concept 10: Trust The Broker, But Listen
When it comes to buying a business, it is important to trust the broker, but also to listen. A broker can provide invaluable insight into the process and can help you find the best deal. However, they should not be the only source of information. You should also talk to the business owner and get to know them. This will help you build rapport and trust, and will give you a better understanding of the business.
It is also important to be aware of the broker's motivations. Many brokers are interested in making money, not necessarily in helping you get the best deal. If they are too involved in the process, they may be trying to control the outcome. Instead, look for a broker who will let you build a connection with the business owner and get the deal done without getting in the way.
Finally, it is important to remember that success is not a one-time event. It is a process that requires hard work, dedication, and perseverance. Don't give up on success, no matter the odds. With the right strategy, you can achieve your goals and make your dreams come true. Trust the broker, but also listen to your intuition and take the time to do your own research. With the right combination of trust and listening, you can find the perfect business for you.
Concept 11: Get Organized To Sell
When it comes to getting organized to sell a business, it is important to stay focused on the goal. This means having a clear plan of action and keeping track of all the details. Start by gathering all the necessary documents and financial statements. This will help you understand the business better and make the process smoother. You should also hire a forensic CPA to evaluate the books and make sure everything is in order.
Once you have all the documents and financials in place, you can start networking and connecting with potential buyers. This is where a business broker can be helpful. They can help you find the right buyers and make sure the sale goes smoothly. However, it is also important to remember that you should still make an objective decision and not get too emotionally attached to the business.
Finally, it is important to remember that success is not a one-time event. It is a process that requires hard work, dedication, and perseverance. Don't give up on success, no matter the odds. With the right strategy, you can achieve your goals and make your dreams come true. Trust the broker, but also listen to your intuition and take the time to do your own research. With the right combination of trust and listening, you can find the perfect business for you.
Concept 12: Achieve Success Faster
The Investors and Entrepreneurs Professional Mastermind (TIEPM) is a great tool to help you reach success faster. This program combines traditional peer-to-peer masterminds and accountability partnering. Your peers will help you set goals, take actions, and get results. TIEPM also helps you scale, blow past roadblocks, and achieve success faster than you might think is possible.
Success is a journey, not a destination. It is important to remember that success is not just about reaching a certain goal. It is about the journey you take to get there. It is important to have a plan and a strategy that you can follow. When you have a plan, you can make sure that you are taking the right steps to reach your goals.
It is also important to have the right mindset. Believe in yourself and your abilities. Believe that you can achieve success. Believe that you can reach your goals. Believe that you can make your dreams come true. Believe that you can make a difference.
Finally, don't be afraid to ask for help. There are many people out there who are willing to help you reach success. Reach out to mentors and peers who can provide you with guidance, advice, and support. With the right people in your corner, you can reach success faster.
Success is attainable. With the right strategy, mindset, and support, you can achieve success faster than you might think is possible. Don't give up on success, no matter the odds. Believe in yourself and take the steps necessary to reach your goals. With the right combination of trust and listening, you can make your dreams come true.
---- MORE COOL STUFF ---
Are you ready to take your podcast listening to the next level? Subscribe to "DEEPER by How2Exit" newsletter and never miss out on our latest episodes. Join our newsletter HERE
Want to stay in touch with what's happening in the Main Street M&A Space? Subscribe to The Hub - Acquisitions Hub
