When you buy a business, you instantly become its CEO. Most first-time buyers focus on de-risking the deal, but the real question is whether you actually want to do the work the job requires. Buying a bike shop because you love riding bikes is a mistake: you'll spend your days as a mechanic, not a rider.
When you're looking at a business, a lot of first-time buyers are trying to de-risk the acquisition. And I actually feel like that's not where the magic is. The magic is understanding that you are going to be the CEO of this company the minute after the transaction and everything you're looking at is only directionally accurate in terms of what's going to happen after. So you're cutting off the head of this animal and you are becoming the head. So what you need to do is think first about, do I have the right attitude to be the leader in this business? What is my aptitude? What is it that I bring to the table? And what do I want my daily activities to look like? If you like riding bicycles, then don't buy a bike shop because you're never going to actually ride a bicycle. You're going to be like a mechanic.
