The Operator Weekly: Operations Beyond Buying the Business

While the process of buying a business can be exciting and fulfilling, it's important to remember that it's just the beginning of your journey. The real challenge comes in the day-to-day operations of running a business.

The process of buying a business and getting to know the people behind them can be incredibly satisfying. It involves a lot of research, due diligence, and negotiation, but it's just a small piece of the puzzle. The real work starts once you take ownership. Suddenly, you're responsible for everything from managing employees and handling financial tasks to making strategic decisions and dealing with unexpected challenges.

There's the idyllic side of search and then there's the day to day operations beyond buying that business.

As a business owner, you're expected to juggle a multitude of tasks. It can be overwhelming, especially if you're not prepared for the operational heartaches that come with running a business. But with the right mindset and strategies in place, you can navigate the day-to-day challenges of owning and operating a business.

It can be hard on yourself or your team to stay motivated sometimes. Going from search to actually operating can be daunting. Remember to be being proactive and prepared for challenges. This means staying up to date on industry trends, keeping an eye on your finances, and having a plan in place to deal with unexpected issues that may arise. If you aren't much of a reader, dive into the problems and work through them. Build and iterate.

Don't be afraid to ask for help. Whether it's seeking advice from mentors or hiring experts to handle specific tasks, seeking help when you need it can be crucial to the success of your business. It's important to surround yourself with a strong team of advisors, employees, and partners who can support you and help you navigate the challenges of running a business.

While buying a business can be a fulfilling and exciting experience, it's just the start of your journey as a business owner. The real challenge comes in the day-to-day operations of running a business. With the right mindset and intentions, you can navigate the operational heartaches and build a successful and thriving business. Or at least learn a lot along the way!

Thanks to Everest Brady for his help, writing, and research in assembling this week’s newsletter.

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• RNOA: What It Is, And Why I Love This Profitability Measure by Josh Schultz

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SMB Open Hires

Instead of posting available jobs this week, we want to help out our friend, Tom Birchard.

This Week on Think Like an Owner

Our guests on this episode are Heritage Holding co-founders Alex de Pfyffer and Ross Porter. Heritage acquires companies across industries, but has a special focus on IT services and data centers. Alex is a data geek and loves talking with entrepreneurs in data, and haven’t talked with much of anyone on the hardware side so this conversation was a lot of fun for me.

We talk about identifying companies offering essential services, their data center acquisitions and strategy, what they’ve learned from private equity on growing companies, and thoughts on a long-term structure for Heritage going forward.

This episode Q&A features Heather Endresen at Live Oak Bank, she answers, "What effects from higher interest rates have you been seeing in your lending and current clients?" Live Oak Bank is a seasoned SMB lender providing SBA and conventional financing for search funds, independent sponsors, private equity firms, and individuals looking to acquire lower middle market companies. If you are in the process of acquiring a company or thinking about starting a search, contact Lisa Forrest or Heather Endresen directly to start a conversation or go to www.liveoakbank.com/think.

This Week in SMB Twitter

Think Like an Owner is sponsored by:

Live Oak Bank – Live Oak Bank is a seasoned SMB lender providing SBA and conventional financing for search funds, independent sponsors, private equity firms, and individuals looking to acquire lower middle market companies. If you are in the process of acquiring a company or thinking about starting a search, contact Lisa Forrest or Heather Endresen directly to start a conversation or go to www.liveoakbank.com/think.

Ravix Group - Ravix Group is a fraction CFO, outsourced accounting, and HR consulting firm serving small and large businesses alike. Whether you or someone you know is getting started, searching to buy a business, or building out an organization, Ravix will help on the journey. To learn more about Ravix Group, head to their website and tell them Think Like An Owner sent you.

Hood & Strong, LLP – Hood & Strong is a CPA firm with a long history of working with search funds and private equity firms on diligence, assurance, tax services, and more. To learn more about how Hood & Strong can help your search, acquisition, and beyond, please email one of their partners Jerry Zhou at [email protected]. 

Oberle Risk Strategies– Oberle is the leading specialty insurance brokerage catering to search funds and the broader ETA community, providing complimentary due diligence assessments of the target company’s commercial insurance and Employee benefits programs. If you are under LOI, please reach out to learn more about how Oberle can help with insurance due diligence at oberle-risk.com. Or reach out to the CEO, August Felker, directly at [email protected].

Oakbourne Advisors – Oakbourne is an independent retirement plan consulting firm that helps small companies design and implement great retirement plans for their teams.  Whether you already have a 401(k) in place or are looking to start one for your team, please reach out to learn more about how Oakbourne can set your people up for success in retirement at oakbourne.com/think.

Interested in sponsoring? Reply to this email and let’s chat.