Keira Hamilton

The #1 reason I hear folks ask about non-SBA loan options is that they don't want to provide a personal guarantee. I get it, personal risk is scary.

But even conventional options in the SBA size range are likely to require a PG, particularly if the deal isn't fully collateralized by real estate.

Instead of trying to get around the PG, find a business you're willing to PG for.

#SBA #SBALoan #ConventionalLoan #ETA #SMB #BusinessAcquisition #PersonalGuarantee

As you embark on or continue your business buying journey in the new year, I know you are going to see more opportunities come your way and experience more success if you can remember this lesson.

Happy New Year!

The vast majority of business owners selling their business genuinely want to see it continue to succeed, even if it has no monetary impact on them. They want someone who is going to treat their employees and their customers well. Someone who is going to continue the legacy that they built.

And it’s about to be very personal to you as the one who is going to be responsible for it, and maybe have a significant debt to pay back on it.

Business is personal. It’s personal to the seller, who’s likely devoted a considerable amount of time and money to their operation.

It’s personal to the employees, who are directly impacted by the work culture of the business and rely on it as a source of income.

It seems simple, but I see it so often overlooked.

Too often, I see folks get too caught up in their spreadsheets. They’re so excited about the SDE or the margins or the multiple, they lose sight of the bigger picture.

I learned a lot from selling my business this year. I’ve been sharing my top lessons learned, and now it’s time for the most important one.

Lesson 5️⃣ - Business is about people. #ETA #SMB #BusinessAcquisition #Searcher #SearchFund

It goes both ways. You need to feel out your seller and determine if this is someone you want to partner with. You also have to show that you’re a good person to do business with, because they’ll be making the same assessment of you.

Follow to catch lesson 5 tomorrow!

If I were considering a business to buy and everything looked fantastic on paper, but I wasn’t getting a good feeling from the seller, I’m not buying that business.

Because as someone who has sold a business, I know there are things I could have hidden from my buyer.

You have to pay attention to vibe.

You know when you’re not getting a good feeling from someone. You can tell when someone seems a little shady–when it feels like they’re not quite giving you the whole story.

Due diligence can take months. More than likely, you’re going to encounter some kind of problem or unexpected circumstance at some point. And you want the person you’re doing business with (your buyer or seller) to be someone you can rely on to work with you, not against you.

I truly think one of the biggest oversights in due diligence is the seller themselves. When you sell or buy a business, you are entering into a business partnership with the person on the other end of the transaction.

Are you looking to buy a business in 2025? To wind down 2024, I’m sharing 5 lessons learned from selling my laundromat that will help you buy a business in the new year.

Lesson 4️⃣- Buyers and sellers become business partners. #ETA #SMB #Searcher #SearchFund

I’ve got two more lessons coming your way before 2024 wraps up! Be sure to follow to catch them! #ETA #SMB #BusinessAcquisition

From your first interaction with a broker/seller, show through your words and actions that you are honest and reliable.

✅ Demonstrate that you are a good person to work with.

I wasn’t just looking at how much cash buyers had. I was also assessing whether or not they were someone I wanted to work with. I knew at some point there would be problem that we would need to solve together.

Your initial outreach should not get into numbers. You should not start the conversation trying to secure a seller note or haggle for a lower purchase price. Simply start by introducing yourself and why you’re interested in the business.

✅ Focus on making a good first impression and building rapport.

This starts with getting honest with yourself about what you’re looking for and how you plan to execute. Brokers and sellers need to believe that you'll be a good operator, and that you can execute.

✅ Reflect & do your research to determine what is realistic.

Spend time really considering what type of business is going to be the best fit for you based on your experience and how you want to spend your time. Also make sure you have a financing plan (that isn't seller financing or zero down).

To count down to 2025, I’m sharing 5 lessons learned from selling my business that will help you on your business buying journey in the new year.

Lesson 3️⃣ - It’s not that hard to be a good buyer. Here’s how.

When I was in the process of selling my laundromat, there were a lot of time wasters. People who were rude, or had unrealistic expectations, or just weren’t serious. But, I interacted with some great folks as well, and ended up finding a fantastic buyer. #ETA #SMB #BusinessAcquisition

If you’re looking to buy a business next year, I strongly encourage you to take some time for personal reflection and market research. Save yourself and sellers time by educating yourself on what is realistic in the ETA space.

Follow for lessons 3-5!

Particularly with smaller deals, and especially with a business like a laundromat, there are cash buyers out there. If you find a seller willing to carry a large note, that business is likely going to need a significant time and money investment from you post-close.

🚫 You can rely on seller financing to get deals done.

There’s been an unrealistic expectation set by the gurus that relying on seller financing is a viable strategy for buying a business. While seller financing is a common practice, the good deals are not being done with high levels of it.

🚫 You can close on multiple acquisitions within a year.

Sure, it can be done. But I usually heard this from people who had never owned a business before and didn’t have the cash to back up their plans.

My advice: Start with one business. Really learn how to be an operator.

I think what a lot of this comes down to is that many people start looking for a business before they’ve figured out for themselves what it is they really want, and what they can actually execute on.

Here are a couple of the common misconceptions I encountered from buyers:

There were different ways that potential buyers wasted my time. Some had clearly heard about buying a laundromat on YouTube and just wanted someone to listen to their brilliant plan to buy five laundromats in the next year.

Some were unwilling to provide proof of funds. Some ended up ghosting.

To close out 2024, I’m sharing 5 lessons learned from selling my laundromat that will help you buy a business in 2025.

Lesson 2️⃣ - When selling a business, there are a lot of time wasters. Don’t be one of them. #ETA #SMB #BusinessAcquisition #Searcher #SearchFund

I KNOW 😂

Yep! When I sold my laundromat, I put the proceeds in a CD. The interest I'm making off that is passive, but I needed a chunk of money to start with.