6 Must-Ask Questions Before Buying a Business

Amazing FBA Amazon and ECommerce Podcast, for Amazon Private Label Sellers, Shopify, Magento or Woocommerce business owners, and other e-commerce sellers and digital entrepreneurs.

Congratulations, you've found a potential e-commerce brand acquisition opportunity! Before diving in, it's crucial to showcase your own value as a buyer. Whether you connected through a broker, a cold outreach, or a warm introduction, be prepared to demonstrate your capabilities in a concise and impactful way. Remember, flexibility is key. Time Stamp [00:50] - Introduction To Step Five Of Buying E-commerce Business[02:13] - Six Key Questions For Sellers[02:39] - First Question: Tell Me About Your Business[03:36] - Second Question: What Happens If You're Away For Three Months[04:32] - Third Question: How Do You Market Your Products[04:47] - Fourth Question: Who Are Your Competitors[05:43] - Fifth Question: Why Are You Selling The Business[07:10] - Sixth Question: How Would You Grow The Business[08:10] - Setting Up Next Steps After The Meeting[09:47] - Getting NDA Signed And Requesting Financial Data[10:28] - Recap Of Main Points From The Meeting[11:20] - Importance Of Practice And Role-playing[12:11] - Learning From Sales Pitch Evaluations[13:15] - Reflecting On Experience With A Mentor[13:44] - Offer For Assistance In Business Evaluation And Negotiations[14:27] - Encouragement To Practice And Seek Help If Needed[14:50] - Preview Of Next Topic On Deal Making Psychology Aiming to Project: Safe pair of hands: Reassure the seller you are a responsible and reliable owner. Industry experience: Highlight your understanding of the e-commerce landscape. Business experience: Demonstrate your track record of successful business management. Experienced dealmaker: Showcase your expertise in navigating acquisitions (if applicable). Authority: Subtly lead the conversation, demonstrating your seriousness and preparedness. What to Say in Your Self-Presentation: Briefly outline your industry background and expertise in e-commerce. Briefly highlight your experience in managing successful businesses, if applicable. Mention any relevant dealmaking experience (acquisitions, investments, etc.). If you have a strong team or mentor, subtly reference their expertise. Evaluating the Business (6 Key Questions): Now that you've established your credentials, it's time to delve deeper into the business. This is not a full due diligence process, but a preliminary assessment to determine if the opportunity aligns with your goals. Here are 6 Key Questions to Ask (within 6 minutes): Open-ended: "Tell me about your business." This opens the dialogue, provides a business overview, and reveals the seller's personality (explored further in the next episode). Management: "Who runs the business day-to-day? What happens if you were unable to work for a few months?" This assesses the team structure and potential operational dependencies. Marketing: "How do you currently market your products and generate sales?" Understand their customer acquisition strategy and marketing channels. Competition: "Who are your main competitors? How do you differentiate from them? And how do they beat you, if at all?" Gauge market positioning and competitive landscape. Reason for Sale: "Why are you selling the business?" Identify the seller's motivation, which can impact negotiations and future growth plans. Growth Potential: "If you weren't selling, how would you envision growing the business?" This reveals the seller's perspective on future potential and aligns with your own acquisition goals. Pro Tip: "NLP Anchoring" (Revealed Next Episode): We'll delve into Carl Allen's NLP anchoring technique in the next episode, a powerful tool to subtly guide the conversation during this evaluation phase. Moving to the Next Step If the initial evaluation sparks your interest, it's time to set up clear next steps. Goals: Future Pacing: Outline the potential acquisition timeline, fostering a smooth transition. Reinforce Expertise: Further establish yourself as a qualified and serious buyer.