Are you ready to buy your first business? (use this checklist)

A lot of people think about buying a business.

But few ever actually pull the trigger.

Most are waiting for the “perfect” moment, whether that’s needing more savings or stability before going for it.

The problem with that kind of thinking is that you’ll never feel 100% ready.

So today, I’ll share a brief checklist to help figure out if you’re truly ready for business acquisition.

Financial readiness

You don’t need a million dollars in the bank, but you do need to meet SBA pre-qualification requirements.

Get pre-qualified with an SBA lender by bringing your last three years of tax returns, pay stubs, and personal financial statements.

A good rule of thumb: for a $1M business, you need at least $100K in available capital to qualify for the loan. You can provide it or an investor can, but 10% of the purchase price is typically needed for the lender to do it.

If you’re not there yet financially, focus on building your income and savings first.

Time commitment reality

You don’t need 40 hours per week to find and close a deal.

I tell my students to spend just one hour per day looking at deals. Many of them are working professionals with families who can’t dedicate more time than that.

Yet the majority find and close deals in 6 to 9 months, and lots of them keep their day jobs.

If you can consistently dedicate one focused hour per day for 6-9 months, you have enough time.

Family and life situation

If you have kids or other major life responsibilities, it’ll be more difficult.

But it’s still doable.

It’s the same as mastering any other skill: it just takes repetition and time.

The key is being honest about what you can commit to without sacrificing your family or health.

The stability trap

People talk about the risks of entrepreneurship, and rightly so.

However, you will never feel completely stable in a W2 job either!

You can get laid off at any moment, and your earning potential will always be capped.

If you’re waiting for things to feel more stable before pulling the trigger, ask yourself:

How much more stable does it need to feel?

The opportunity cost of waiting adds up faster over time, so think about this very seriously.

If you…

1. Meet SBA pre-qualification requirements

2. Can commit 1 hour per day for 6-9 months

3. Are willing to learn and take action despite fear

… then you’re ready.

I promise you that “perfect conditions” will never come.

At some point, if entrepreneurship is really for you, you just have to take the leap.

So, if you’re ready to start looking for your first business acquisition…

Listen up:

I share business opportunities with subscribers when I come across deals worth evaluating.

If you’d like to get those emails, fill out this short form:

👉 I want to buy (or passively invest into) a business

Or, if you’re looking to sell your small business, tap the link below and tell me about it:

👉 I want to sell my business

Onward,

— Ben Kelly