Acquiring Minds Buying a Small Business to Build for Decades
21 snips
Aug 21, 2023 August Felker discusses his experience buying a small business without an MBA, using cold calling to secure his first deal, and the resiliency of the insurance industry. He explores lessons in leadership, the benefits of self-funding a second deal, and his vision for building a brand. The podcast also covers the niche of working with searchers, the role of virtual professionals in business operations, and the challenges of starting an insurance brokerage.
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Cold Call Secures First Deal
- August found his first deal through a cold call to an insurance magazine editor who connected him to a seller in Madison.
- He used handwritten letters and phone calls to differentiate himself, securing a valuable seller introduction early in his search.
Elevator Asset Risk and Earnouts
- Insurance agencies are "elevator asset businesses" with intangible assets that can leave with employees.
- Earnouts and seller commitments are normal to mitigate the risk that employees or sellers exit, affecting business value.
Knock Doors to Retain Clients
- Meet clients in person to build trust and reassure them during transitions.
- Personal outreach helps retain clients when salespeople change.