Acquisition Aces - Issue  #11 - Read Time - 3.5 minutes

The Most Famous Business Course Correction Of All Time (And A 250k Passive Income Pivot By One Of My Students)

In 2005, a company called Odeo was founded.  The initial concept was to help people find and subscribe to podcasts.  Unfortunately, there was some stiff competition.  A little company called Apple (you may have heard of it) was beginning to dominate the niche with its iTunes platform. 

Seeing the digital writing on the digital wall, the heads of the company decided to make a pivot to a new offer.  Two employees, Jack Dorsey and Biz Stone, came up with the idea of changing the app to a status-updating micro-blogging platform.  On July 15, 2006, Twitter was born.  I use it every day, along with 556 million other people.

A lot of successful businesses end up doing completely different things than their founders ever intended.  A ton of companies fail for the opposite reason, they hold on to an idea that is not working.   People also do both of these things as well.

Why People Pivot To Become An Acquisition Ace

There was one point where I thought I was going to be in the Army until I retired.  However, after a while, I realized it was not going to give me the life that I wanted for my family.  I had put enough time in that it was tempting to stay, but then I looked at some of the older guys that it was not a perfect fit for.  They were not happy.

Economists refer to this situation as a ‘sunk cost’.  The idea is that you have put in something that cannot be recovered and this should not dictate future decisions.  In my case, it was years of service.  Stubbornly staying in a situation that isn’t a good fit because you have just been there for a long time does not help you. 

Don’t get me wrong, I loved the military.  It just was not the right vehicle to get me to where I wanted to go.  People like me decide to buy businesses for all sorts of reasons.  Examples include:  

1. Diversification.  

2. Tax Benefits.  

3. Compressing time frames for financial goals.  

4. Passive income.

Even though everyone has a different reason, they all have to have the courage to make a change.  I know that this is not easy.  It was hard to leave the Army but it was the right choice.  It isn’t just the buyers who have to pivot, sellers do too.

Why Sellers Pivot From Great Businesses

One belief that holds people back, is assuming that no one would want to sell a great business that has passive income.  Just like the Army is a long-term fit for some people but not for me, the same holds true for founders of successful companies.  I know that this can be hard to believe but people sell profitable businesses all the time.

Maybe they don’t like being an owner anymore.  Perhaps they are battling some health or family issues.  It could be something as simple as they are getting ready to retire (I talked about the Silver Tsunami in issue #4, you can read that here: The End Of The Golden Age).  The first step to changing your situation is to believe that others want to change theirs.  Sometimes it can be hard to be objective about your situation when you are living it, so let’s take a look at a case study.

One of my students took a leap of faith and it changed his entire life.

Case Study: Kris

Kris currently works a 9-to-5 for Chevron.  He had decided that he wanted help to acquire a business, so he joined my private group.  Within 5 months he purchased a company that did maintenance on oil pumps and added 250k of passive income.  Not bad for someone who describes himself as a “100% novice” in the acquisition game.

There is a very important lesson in Kris’ journey from employee to 1st time business owner.  He actually could have accomplished his goal much faster but he got stuck on a different deal.  His first choice was a steel company.  When the owner of that company continually tried to renegotiate, Kris walked away.  He pivoted to his second choice and closed the deal very fast with a motivated seller.

The big takeaway is don’t be afraid to move on from your favorite deal.  Take a look at his amazing story here:

Believing that other people want to change their lives just as much as you do by selling their businesses is the first step to finding the right deal.  It happens every single day to normal people just like Kris.  If you want to start your own Acquisition Ace journey, start by booking a time to chat with me here: Calendar 

Have a great rest of your week!

PS - Coaching compresses timeframes. If you want help finding the perfect deal for you, book a time on my calendar here to explore becoming an Acquisition Ace: Calendar

Ben, I Want to learn more…

If you feel that you are constantly working "in" the business instead of "on" the business and feel that your goal of financial freedom has led you to a prison of your own design.

You are not alone, I used to be there as well.

I have 5 companies and counting and work less than 20 hours a week on them - COMBINED.

It is not rocket science and I can help you do the same for your business.

Choose a time on my Calendar and we will get to it.

Onward,

Ben

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