Team Member - In this model, the individual recognises that they are not an X-Factor leader and will need to be on a team with someone who is. They may have finance skills, for example, and be a team member with another X-Factor leader who is going to take the role of filling the leadership void. Investor Buyer - Our observation is that the idea someone can just buy a business they don't have a background and are unwilling to become an operator with the idea of just relying on the existing day- to-day managers does not work well in most cases and a flawed model. If someone is not an X-Factor leader and/or not prepared to fill the leadership void, they will need to be on a team or investing in someone that is to lead the business post-sale. We realise that many people in the community and some Buyer programs may advocate for this ‘investor only’ model. We are simply being true to our observations that this does not work in practice in most cases. It is important to understand that the due diligence period and contracts phase could take 3-6 months. During this time a Seller is going to get to know a Buyer pretty well. They will need to be confident that a Buyer can take over and run their business or they are likely to pull out of the deal. In the first instance, they will want confidence that their legacy will be maintained. In the second, they will want to be confident that they will get paid any monies due after closing. So it makes sense, to be honest about whether a Buyer is the right fit early on to save both sides time and money. What Type of Business Should I Buy? This is a multidimensional question that is different for everyone. This topic is also covered in many other books, so we won't go into it much here. However, below are some thoughts and guidelines you might find helpful:
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