Acquiring a small or medium-sized business (SMB) is a significant challenge. From the initial search to the final deal, the journey can be full of challenges and setbacks. Based on experience working with numerous searchers, the key traits that distinguish successful searchers from those who eventually give up are their ability to persist and pivot effectively.
The Importance of Persistence
Persistence is a fundamental trait that every successful searcher displays. It’s not just about having a devoted attitude but also about maintaining that attitude through the ups and downs of the acquisition process. Searching for the right SMB involves a lot of effort—conducting thorough research on potential targets, networking extensively, negotiating terms, and dealing with the occasional obstacles.
No matter how diligent your search is, you will encounter challenges. Deals may fall apart due to unforeseen circumstances, market shifts, or misaligned expectations. In these moments, it’s crucial to brush off the disappointment and continue moving forward. Successful searchers understand that persistence is not just about enduring challenges but also about maintaining a forward momentum, learning from setbacks, and not letting failures define their search.
The Necessity of Pivoting
While persistence is essential, it must be coupled with the ability to pivot when necessary. The market is dynamic, and what may seem like an ideal search criterion today could quickly become outdated. Flexibility in your approach allows you to adjust your criteria based on changing market conditions or new information.
For instance, if you’ve been focusing on a specific industry but notice a shift in market trends, it might be time to reassess your strategy. Pivoting might involve altering your search criteria, exploring new markets, or re-evaluating your deal structures. The ability to adapt ensures that you remain relevant and increase your chances of finding the right SMB.
Balancing Criteria with Flexibility
Creating a search criterion is a crucial step in finding the right SMB, but it’s equally important to balance this with flexibility. A firm approach might limit your options, whereas an adaptable mindset allows you to explore a broader range of opportunities. For example, if your initial criteria don’t yield the expected results, being open to adjusting them based on new insights or changing conditions can lead to discovering unexpected yet promising opportunities.
Learning from Setbacks
Setbacks are an inevitable part of the acquisition journey. Whether it’s a deal falling through or a market shift impacting your search criteria, learning from these experiences is vital. Reflecting on what went wrong and how you can adjust your approach moving forward will not only enhance your resilience but also refine your search strategy. Each setback is an opportunity to gather insights and improve your approach for future endeavors.
The Overlooked Basics
It’s easy to overlook the basic principles of persistence and adaptability in the pursuit of SMB acquisition. Many searchers get caught up in the complexities of the process and forget the importance of these fundamental traits. While sophisticated strategies and detailed search criteria are vital, they are only part of the picture. The fundamental distinction often lies in the resilience and flexibility of the searcher.
Conclusion
In summary, the path to acquiring an SMB is paved with both persistence and adaptability. Embracing these traits will not only help you navigate the inevitable setbacks but also allow you to seize new opportunities as the market evolves. By balancing steadfast persistence with a willingness to pivot, you can enhance your chances of success and ultimately achieve your acquisition goals. Remember, while the journey may be challenging, it is these basic principles that often make the difference between success and giving up.
Thinking of Buying a Business?
Taking the leap into your first (or hundredth) acquisition? Our team at Rapid Diligence is here to offer a wide range of due diligence services for your small business acquisition. If you have questions or are still trying to figure out where to begin, set up a free call with our team to discuss how we can help you find your perfect business.
