BBW #001: Doing Your Due Diligence Before Buying A Business

What to focus on when buying a small business.

Welcome to Business Buying Weekly!

Hey there, and welcome to the first edition of Business Buying Weekly! I’m excited you’re here. If you’re interested in buying and growing businesses, you’ve landed in the right spot. Whether you’re just getting started or already have a few acquisitions under your belt, this newsletter will walk you through everything you need to know—one bite-sized tip at a time.

Each week, I’ll send you a super practical, no-fluff tip that’ll help you along your business buying journey. Buying a business can feel like a mountain to climb, but we’ll break it down together, step by step, so you can move forward confidently.

Why Business Buying?

Buying a business is one of the fastest ways to build wealth. Skip the risky startup phase and step into something that’s already up and running. You get an established customer base, employees, systems—everything's in place for you to take it to the next level. Sounds great, right? But… it can also be overwhelming. That’s where Business Buying Weekly comes in. My goal is to make it simple and actionable for you.

Here’s what you’ll learn:

• How to find businesses that are a great fit for you.

• Evaluating if the price is fair and what the business is really worth.

• Creative ways to finance your purchase without breaking the bank.

• Doing your homework (due diligence) so you don’t get stuck with hidden problems.

• Negotiating like a pro to get the best deal.

• And finally, how to scale that business after you buy it.

---

This Week’s Tip: Conducting Due Diligence

Let’s kick things off with a critical step: due diligence. This is the part where you dive into the nitty-gritty of the business and make sure everything is legit. Don’t rush through this—due diligence helps you avoid those nasty surprises later on.

Here’s what you need to focus on:

• Check the financials: Look at the revenue, profits, and expenses. Does it all add up? Are there any red flags?

• Watch out for hidden debts: Make sure there aren’t any outstanding loans or legal issues hanging over the business.

• Understand the operations: How solid is the customer base? What contracts are in place? What about the employees? You want to know what you’re stepping into.

For more details on how to get this done right, I’ve got you covered with my full guide on RunTheMoney: Steps to Buying a Business.

Coming Next Week: Understanding Business Valuation

Next week, we’re diving into business valuation—basically, how to figure out if the asking price for a business is actually worth it. Spoiler: It’s not just about the price tag. Stay tuned for that!

---