Mistake #4 - Being Overly Aggressive

Something changed in your life and you decided to own a business. You could probably start from scratch, but considering all pros and cons decided to acquire an established business. Well, it's a very wise decision as long as you do it right. Unfortunately, new business buyers make many mistakes that make business acquisition much harder, some times causing substantial financial and emotional hardship, other times loss of otherwise promising business opportunity altogether.

Let's review 10 major mistakes that business buyers make that prevent them from successfully buying a business.

• Mistake #1 - Procrastination 
• Mistake #2 - Making Assumptions 
• Mistake #3 - Not Asking Right Questions 
• Mistake #4 - Being Overly Aggressive
• Mistake #5 - Falling In Love With A Business
• Mistake #6 - Not Being Able To Compare Businesses
• Mistake #7 - Not Using Intermediary For Negotiation
• Mistake #8 - Forming Partnership Without Proper Documentation
• Mistake #9 - Allowing Counselors Making Buying Decision
• Mistake #10 - Relying Too Much On Financial Documentation

Mistake #4 - Being Overly Aggressive

There's no doubt, being a business owner may require you to be persistent and sometimes aggressive in pursuing your goals. Yet, dealing with other people requires quite a bit of diplomacy, especially while doing business and especially when you're negotiating a deal. It's a very good idea to put yourself in business owner's shoes while expressing your opinion about their business.

Imagine that it's you started business from scratch, invested significant amount of money, spent countless hours away from family and friends, nurtured this business like little baby. You know why things are the way they are; how you landed every single account. You have a lot of sentimental attachment to this place.

Now.., some guy or gal comes in and starting criticizing and scrutinizing everything you've done so far. The rent is too high, the space is too small, equipment is old, walls are of wrong color, etc., etc., etc... How would you react to such comments, even if they're one hundred percent true. Most likely you will resent such behavior and quit dealing with  such person altogether.

Therefore, while dealing with a business owner and negotiating a deal remember that he or she invested a lot of emotional capital in the business. Don't be overly aggressive and causiously select words. Your negotiations are going to be much more productive if you develop rapport with the owner, rather than making him defensive.

By the way, that's the reason why having a business broker - independent third party - makes negotiations much more productive. First, business brokers are skilled in negotiating and know many ways to make a deal work. Second, they don't have any emotional attachment to the business for sale and will handle both sides calmly. Having calm, business-like atmosphere during negotiation is critically important for successful sale.