How to Buy a Biz if You Lack Industry Experience…

According to Ben, sure, he could look at companies — including SaaS businesses — where his medical background could be more relevant.

But “I’m just not totally interested in those industries,” he told the community.

So what did other members do?

They sharpened their pencils, offered some tactical perspectives, and gave Ben some (really sharp) ways to think through the issue.

Here’s what some of them had to say:

Natalie: Step-by-step tips on how to sell yourself to lenders

“I have a similar issue and here is how I navigate it…

• I explain how I strategically built my career so far (e.g., I’ve worked in procurement, marketing, sales, and now consulting)
  
• I explain my why (e.g., started as a kid, I’m interested because XYZ, I aim to do XYZ for the company)
  
• I show what I’ve been doing outside my W2 so far (e.g., worked voluntarily on a startup, dove into the startup scene, etc)
  
• I show my greatest successes and why they are successes
  
• I connect my work experience and transferable skills to the company I’m interested in (e.g., great people management, proven resilience, etc.)
  
• I try and understand the seller. Are they emotional? Logical? What is important for them when selling? What is going on in their life that touches them? I try and build bridges between this and what I bring to the table
  
• I have a plan to showcase how I’ll navigate missing skills and knowledge
  
• My last resort would be to try and get direct industry experience: getting access to networks, doing some voluntary work on weekends…”

Robert: A process for identifying your strengths and weaknesses

“Have you written out all the things you currently do within your career today and another list of things you’d need to do with the types of businesses you want to acquire?

Then you look at those two lists for matches.

Maybe you manage people today? You’ll have to manage people in the future. Problem-solving type skills? Operational and strategic decision-making?

Did you mention you are part of a business-buying educational community where you actively look at various deals, P&Ls, balance sheets, how to operate, take over, grow, etc?

I find that if I write down all of the details of running a future business and compare it against what I do today inside and outside of my job, I can find many things that translate, so I can focus on talking about those skills with sellers, brokers, loan officers, etc.

If there are any gaps, then I look at what education I need to get and where I can get it…

I don’t know if that’s helpful, but I’d bet that you have many skills that you can transfer to owning a business that you can focus the conversations on.”

Sean: Consider getting an industry-specific coach

“You’ll be bringing in an operator for the business you buy, no?

If the biz requires a specific license, you’re keeping someone on staff with that license, correct?

At the very least, you’ll hire a coach to help you run your newly bought business, no?

If you’re getting to the point of due diligence where you’re making a loan application, you’re at the point of lining up your operator and/or a coach.

Get that step completed and have the lender on deck with the assumption that you’ll have this person in place.

Sage: Reconsider bringing on a partner…

“I have both the tech and blue-collar experience so I have found the barriers are easier to overcome and my ‘specialized generalist’ jack of all trades B.S. actually put me in a favorable position for almost any kind of deal. (Thanks ADHD!)…

Partnering can be a really great way to overcome these boundaries.

I’d suggest having more than a silent partner because you do increase your risk with little experience in the industry.

I even get a little nervous on HVAC because I’ve tried to work with coolant before… and it’s a whole other beast — I know I’d need a trustworthy operator even if the license wasn’t a concern.

Knowing this group has resources, the advisors you have, and the confidence in answering how your skills translate will help. If you want some experience flooring, I’d love to put new hardwood in my bedroom upstairs…”