Navigating Uncharted Waters: My First Encounter with a Business Owner
A Real-Life Lesson in Entrepreneurship and Adaptability
In the last post, I discussed a range of topics related to the first call you will have with an owner, and you can check out the post here. The importance of such a topic warrants a further post. Why is that? Well, the early days of searching are all about gaining momentum. While there is a lot you can do from a process and structure standpoint to set up your search foundation, you inevitably need to get out into the market and speak with business owners.
That’s why I will be sharing more about this experience today, so you can get a glimpse of what to expect during these calls, where I did well, and where I went wrong to inform your strategy. Much of this will be up to you to decide.
But whether you’re a prospective searcher or a seasoned one, self-funded or traditional, today’s post will be one additional perspective that can help you build confidence in your sales approach.
If you want to start your own business or do anything entrepreneurial, you must learn how to sell yourself. If you don’t have that kind of experience but are committed to figuring it out, this post is also for you.
Initial Engagement: Opening the Dialogue
Following my industry thesis-driven sourcing efforts, I managed to batch about 80 companies into my first outreach campaigns two weeks after my search formally kicked off. My initial outreach message looked something like this to a business owner I will refer to as Jane:
Hi Jane,
I hope you're doing well. I'm David LaMore, and I want to help one business owner get more time to focus on their own health.
I'm reaching out to see if you'd be interested in a quick 15-minute call in the next few days to get to know you and talk about Best Health ABC. I've been looking to acquire a healthcare practice and have been impressed with Best Health ABC's diverse set of therapy offerings.
For more background, I lead White Cedar, a partnership between me and seasoned investor-advisors with the sole purpose of buying and leading one business with over $2 million in cash flow. My team offers a unique set of benefits for business owners who care about top-line growth, their people, and the company's longevity.
How does this Thursday or Friday sound? If not, I can be flexible.
Best,
David
Later that evening, I got my first response:
Hi David,
Thanks for reaching out, and nice to meet you via email!
I’m flattered to be contacted about this possibility and would be happy to connect for networking purposes, but I am not looking to sell my business. If you're still interested in chatting despite knowing I am not looking to sell, I'm happy to set up a time to connect.
Best,
Jane
I told Jane that I understood she was not interested in selling her business but that I was open to a conversation. I sent her a link to my Calendly to schedule some time, and we were squared away to connect later that Friday afternoon.
Strategic Preparation: Setting the Stage for Success
The interaction above occurred on a Monday evening, displaying how I spent most evenings during periods of heavy sourcing. I outline this in one of the most popular Maverick posts, My typical week, which I encourage new readers to check out.
With the call set for Friday afternoon, I had a few days to prepare while continuing to field other owner responses, most of which were not open an introductory conversation. By Thursday, I had spent about an hour preparing, drafting my set of qualifying questions, and researching the company.
My talk track and qualifying questions for the conversation looked something like this:
1. Intros and learn more about yourself
2. Overview of Best Health ABC – business model, how it makes money, how it’s grown over time
3. Succession plan and ownership situation at Best Health ABC
4. Size measured by annual revenue and/or EBITDA
5. Next steps for follow-up conversation
The Crucial Day: Facing the Challenge Head-On
I can’t lie; I was nervous heading into the conversation that day. Even though Jane was very polite over email, and I knew she didn’t want to sell her business, I couldn’t get over the fact that I would be talking with a business owner about possibly selling her business one day. Something about it felt so off.
“I am such a fraud – she’s going to laugh me out of the room,” I told myself. It could have been the 3 cups of coffee talking nonsense into me that morning, but I eventually psyched myself up to take the call at our scheduled time later in the day.
As a side note, I wasn’t in the most optimal position to take the call either. At the beginning of my search, I was hesitant to secure an office space because I was still searching for an apartment at the time. I don’t have an issue working in different environments, but my living situation put some pressure on how and where I’d work each day. I should’ve just bit the bullet and found a co-working space, which I eventually did after a few months.
About 20 minutes before the call, I settled into a quiet area to review my notes and take a few minutes to gather myself. At the top of the hour, I joined the Google Meet video meeting, and the conversation began.
The Heart of the Matter: A Candid Conversation Unfolds
I was pleasantly surprised to be greeted with warm and kind words from Jane. We began the conversation by sharing quick introductions, where I stumbled through my story and why I was interested in Best Health ABC. I talked about how my experiences as an athlete influenced how I think about physical and mental health and how that passion turned into an interest in acquiring and running a business in healthcare.
However, before getting into my set of qualifying questions, Jane interrupted me and asked a simple yet powerful question: “What is your vision for my business?”
“Your vision? What? You cannot be serious,” I thought to myself. “Is this what all owner conversations are going to be like?”
A bit taken aback, I beat around the bush with an answer discussing my commitment to improving patient outcomes and organically growing the business. While those answers were accurate, I had yet to even fathom needing to articulate a vision about a company to its owner during the first conversation.
Surprise, when you tell someone you’re looking to buy their business and run it as CEO, you should probably know what you’d like to do with it if you stepped in to run the company as a leader. Go figure.
It turned out that my answer landed quite well with Jane, and we went on to have a lovely conversation that lasted about 45 minutes, 15 past the scheduled amount. We agreed to catch up in the next few months to continue the conversation, but in reality, this was not an actionable (or qualified) lead. While I knew that going in the call, it certainly unleashed my confidence and comfort of having more of these, despite the many stumbles throughout it.
Insights and Reflections: Lessons Learned from the Frontline
As we wrap up this recount of my initial foray into direct owner discussions, let’s distill the essential insights from this experience. These are not just reflections but actionable nuggets of wisdom for those venturing into the dynamic world of entrepreneurship and business acquisition.
1. Building Momentum: Remember, the early stages of any entrepreneurial journey are less about perfection and more about propulsion. Engaging in the market is as crucial as setting up your strategic foundation.
2. Learn through Experience: The nuances of real-world interactions often surpass theoretical knowledge. Every conversation is a classroom, and every interaction is a lesson. Be open to learning, always.
3. Mastering the Art of Self-Selling: Entrepreneurship is synonymous with selling – not just products or services, but your vision, your ethos. This skill is indispensable, whether you're a novice or a seasoned player.
4. Prepared Flexibility: While meticulous preparation sets the stage, adaptability steals the show. Be ready to pivot your strategies and thought processes as real-time scenarios unfold. Be nimble.
5. Embracing Vulnerability: It's natural to grapple with self-doubt and nervousness. Acknowledge these feelings, but don't let them steer your course. Confidence is often found on the other side of apprehension.
6. Vision Alignment: Understand and respect the vision of those you interact with, especially in acquisition conversations. This alignment is not just strategic but fundamentally respectful.
7. The Human Factor: Behind every business interaction lies a human story. Approach each conversation with empathy and genuine interest.
8. Valuing Every Lead: Each discussion, actionable or not, is a step forward early on in your search. Non-actionable leads can unexpectedly unlock confidence and clarity, paving the way for future successes. After your comfort builds, shift away from these non-actionable ones to protect your time.
In conclusion, this journey through my first owner call, riddled with stumbles and triumphs, reinforces a core entrepreneurial truth: the path is unpredictable, but each step, regardless of direction, is a vital part of the learning curve. As we continue to navigate these waters, let’s carry these lessons as our compass, guiding us towards more informed, confident, and successful interactions.
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