Welcome back to another episode of the Before You Buy or Sell a Business podcast.

Recently, I sat down with Rand Larsen and he shared his journey from startup adventures to carving out a niche in the entrepreneurial through acquisition (ETA) space. The discussion unfolds with an exploratory look into Rand's foray into starting his own company and the lessons learned from its quick demise due to external factors like the pandemic. His pivot to buying businesses and his current focus on crafting peer groups provide a rich tapestry of insights for both budding and seasoned entrepreneurs.

Rand's candid recount of his experiences illuminates the challenges and rewards of embarking on entrepreneurial ventures. With an engaging narrative, he dives into the intricacies of building a business from the ground up, transitioning to buying established companies, and creating a supportive community through events and peer groups. The conversation touches on topics such as the feasibility of buying small businesses, the power of mentorship, and the potential of innovative marketing strategies in the digital age.

• Adaptability is Key: Rand's career path emphasizes the need for adaptability, showcasing a readiness to pivot and leverage new opportunities.
• The Power of Community: Building peer groups and organizing events foster camaraderie and knowledge sharing among entrepreneurs.
• Buying Credibility: Acquiring a smaller business can serve as a stepping stone for building credibility in the market and securing more substantial deals.
• Understand Employee Dynamics: Post-acquisition, understanding and navigating the complexities of employee management is crucial for business success.
• Innovative Marketing for Growth: Rand's unique approach to promoting his peer groups through road trips and potential RV branding exemplifies creative marketing techniques.

IN THIS EPISODE

• 0:00 | Introduction
• 6:15 | Building Community Through Local Entrepreneurial Events
• 13:14 | Rand Larsen's RV Adventure for Entrepreneurial Networking
• 17:11 | Pitching to Marcus Lemonis on Twitter
• 24:23 | Balancing Authenticity and Positivity in Business Storytelling
• 27:12 | Evolving Strategies in Small Business Acquisitions
• 34:37 | Delegating Leadership to Transform Business Operations
• 37:33 | Employee Challenges in Post-Acquisition Business Management
• 44:48 | Mentorship, Motivation, and Meaningful Impact in Entrepreneurship
• 48:08 | Rand Larsen Discusses Online Presence and Future Collaborations

Follow Rand Larsen on his journey and discover more about peer groups for business owners:

• Twitter: @RandLarsen (As mentioned, Rand's life and knowledge about business are documented on Twitter)

Listen to Rand's story and learn from his experiences by tuning into the full episode. Stay connected for more episodes that shed light on the real-world aspects of buying, selling, and managing businesses. Don't miss out on valuable advice that could help catapult your ventures to new heights.

Welcome back to another episode of Before You Buy or Sell a Business.

Today, I am happy to introduce a past borrower, Derek Croft, whose recent venture into business ownership presents a unique and fascinating case study for aspiring entrepreneurs.

Derek opens up about his transformative journey, beginning with his engineering background, MBA pursuit, and foray into consulting at a top-tier firm. Realizing that his true calling lay in growing and running a business, he embarked on a meticulous search for the ideal company to acquire, laying out the nuances of his strategic shift from small to larger ventures and detailing his partnership with Search Investment Group (SIG) that led him to a rather interesting business.

As Derek navigates the initial challenges and triumphs of business ownership, listeners gain valuable insights into the critical role of due diligence, establishing operating agreements, and formulating high-impact strategic priorities.

Immerse yourself in Derek Croft's fascinating story of business acquisition and discover essential strategies for entrepreneurial success by listening to the full episode. Stay tuned for more inspiring and educational content to guide your own business journey!

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.

Welcome back to another episode of Before You Buy or Sell a Business. Today, I talk with Erik Fike as he shares his experience of buying a business while still working in his current role.

He discusses how he found the right business, the challenges he faced during the transaction, and the lessons he learned along the way. Erik provides valuable insights into the due diligence process, the importance of finding the right lender, and the need for mentorship and guidance in the acquisition process. He also highlights the significance of having experience in running a company and the motivation behind his decision to pursue business ownership.

Key Takeaways:

• Finding the right business: Erik emphasizes the importance of defining specific criteria for the type of business you want to buy, such as remote operation, B2B services, and revenue margins.
• Negotiating the LOI: Erik shares his experience of going through multiple revisions of the LOI with the seller, ensuring that all key aspects of the deal were addressed and agreed upon.
• The challenges of bank financing: Erik discusses the difficulties he faced in securing bank financing and the importance of finding a lender who understands the business and can provide the necessary support.
• The value of working capital: Erik highlights the importance of having sufficient working capital to navigate unexpected challenges and maintain stability in the business.
• Lessons learned: Erik advises considering forgivable seller notes to mitigate risks and protect against potential contract pauses or cancellations.

Notable Quotes:

"You really should have a mentor. I definitely have, and I also recommend peer groups for that same kind of thing. It's been great too." - Erik Fike

"The best-case scenario with a bunch of recurring revenue is awesome. This is not one of those businesses. This is a big project-based business." - Erik Fike

Erik Fike's LinkedIn

IN THIS EPISODE

00:00:00:00 | Introduction, Erik Fike's Background

00:04:02:10 | Emerging ETA Space & Social Media

00:17:37:01 | LOI, 9 Revisions, and Addressing Key Issues Upfront

00:20:11:13 | Experienced Lender vs Unexperienced Lender

00:27:06:20 | Unexpected budgetary issue in California affecting contracts

00:31:03:08 | Seller Note Forgiveness and Customer concentration

00:36:04:12 | Stability and Experience with Project-based Revenue

00:38:05:04 | Erik Fike Answers: Do You Have a Mentor?

00:39:30:02 | Erik Fike Answers: What Motivates You?

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If you have questions for Jared, visit JaredWJohnson.com

DISCLAIMER: The views and opinions expressed in this program are my own and/or those of my guests. They do not necessarily reflect the views or positions of my employer.