Nikonomics - The Economics of Small Business

76 - The Reality of Buying Your First Business with Chandler Reed

Oct 28, 2024

Chandler Reed, an educator who has guided over 200 aspiring entrepreneurs through his SMB Bootcamp, shares eye-opening insights about purchasing a first business. He discusses the challenges and lessons from his own acquisition journey, including negotiating deals and the realities of operating a small business. Chandler highlights misconceptions about entrepreneurship and explains his decision to buy a job rather than just a business. Listeners gain practical advice on minimizing risk and understanding that the post-purchase landscape can be tough.

31:43

Episode guests

Chandler Reed

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Establishing recurring revenue streams is essential for business stability, especially to avoid the unpredictability of project-based income.

Effective negotiation skills and understanding market conditions are vital when acquiring a business, as demonstrated by significantly reducing the purchase price.

Deep dives

The Shift to Recurring Revenue

Recurring revenue is highlighted as a crucial lesson learned from the experience of buying and operating a business. The speaker emphasizes a desire to move away from project-based businesses due to the stress and unpredictability associated with them. The challenges faced during economic downturns demonstrated the vulnerability of relying heavily on fluctuating market demands and project-based income. This experience reinforced the importance of establishing more stable revenue streams, which is now a guiding principle for future endeavors.

Intro

2min

From Tweet to Business: An Entrepreneur's Journey

7min

Navigating Business Acquisition and Market Trends

2min

Navigating Business Acquisition Challenges

2min

Innovative Approaches to Energy Efficiency

5min

Navigating Customer Acquisition and Revenue Streams

13min

🚨MY NEWSLETTER https://nikolas-newsletter-241a64.beehiiv.com/subscribe 🚨

Join me, Nik (https://x.com/CoFoundersNik), and Chandler Reed (https://x.com/ChandlerReedSMB), as we discuss the realities of buying your first business. Chandler, who has taught over 200 people through his SMB Bootcamp, shares his journey of acquiring his first company, the challenges of buying a "sweaty" business, and why he chose to buy himself a job.

We get into the details of how Chandler found and negotiated his first deal, why the purchase process isn't all rainbows and butterflies, and how operating the business can be harder than the acquisition itself. If you’re thinking about buying your first business, this episode will give you an honest look at what it truly takes to go from buyer to operator.

Questions this Episode Answers:

How did Chandler find and negotiate his first business acquisition?
What are the biggest challenges of buying a small business?
Why did Chandler choose to buy himself a job, and what did he learn from it?
What are some misconceptions about owning and operating a business?
How can you structure a deal to minimize risk while buying a business?

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Love it or hate it, I'd love your feedback.
Please fill out this brief survey with your opinion or send me an email at Nik@cofounders.com with your thoughts.
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This week we covered:

00:00 Introduction to Chandler Reed and His Business Journey
00:19 Chandler's First Business Deal
00:44 Challenges and Lessons in Business Operations
01:04 Overview of Get Green NOI
01:43 Chandler's Entrepreneurial Beginnings
04:20 Business Growth and Market Challenges
06:24 Financial Struggles and Recovery
09:05 Newsletter Promotion and Business Insights
09:38 Business Structure and Deal Negotiation
13:14 Project-Based Business Model
15:56 Leveraging Utility Providers for Rebates
17:04 Introducing the Aquamizer: A Game-Changer in Water Efficiency
18:03 Cold Call Campaigns and Customer Acquisition
18:55 Exploring Business Opportunities and Margins
20:03 Navigating Market Trends and Challenges
22:46 Lessons Learned and Future Strategies
29:22 Rapid Fire Questions and Personal Insights
31:16 Conclusion and Where to Find More

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Nikonomics - The Economics of Small Business

76 - The Reality of Buying Your First Business with Chandler Reed

Episode guests