Meeting with the Seller
Tips For Your First Meeting

So you picked out a business that you want to see and made an appointment to meet with the seller. If you THINK that the goal of the meeting is to interrogate the seller and see how much inside information you can get in order to make your final decision on this opportunity, YOU ARE WRONG!

First of all, your goal of the first meeting is to impress the seller! That's right, you are on an interview. And considering over 90% of business transactions involve seller financing, you are being scrutinized. Here is the reality, the owner is about to sell you his or her BABY! And they will probably have to invest in you and bet on your success. So your initial goal is to show the seller that you are capable and trustworthy enough to purchase their business.

Secondly, the goal of this initial meeting is to start gathering information about the business to eventually make an informed decision on whether or not to pursue it any further.

Here are some tips for the meeting:

1.Be punctual, wait for the broker (if applicable) and enter the business casually as if you are simply a customer or there for a run of the mill meeting with the owner. Don't walk in taking pictures, inspecting the office, asking the employee(s) ANYTHING, or opening doors uninvited. Act like the guest that you are and if asked by an employee why you are there, say you have a business meeting with the owner. Then shut up!

2.When you meet the owner, smile, shake hands firmly, and be pleasant. Wait untill you are out of earshot of any employees and follow the business owners cues when it is ok to talk about the business.

3.Be complementary and listen closely to the owner.

4.Ask for their story. Take notes. Listen actively! Lean forward, nod your head, ask them to expand on their answers. Be genuinely excited to hear the history of their ownership.

5.Try to have all your questions answered, but don't push it. Let the meeting flow per the owners cues. If you are interested, there will be more meetings. Some questions are simply better off not being asked right away, such as don't talk about price....yet!!! (I will give you a list of questions next time).

6.Get a tour. If you are able, and you get permission, take a photo or two. Not a crazy amount, just enough to be able to share with your "advisors". Keep asking questions, keep being friendly and positive. Be very observant (we'll talk about this more soon).

7.If the owner ends the meeting before you want, let it end. You may not have passed the interview. Trust me, you don't want to buy a business that the owner does not want to sell you. Accept it and move on.

8.Post meeting, write the owner a thank you note. Make sure the email or note you send will be delivered privately. You don't even need to talk about anything related to the sale process. Just that you appreciated their time and effort.

9.Follow up with the broker and give and get feedback. This will help the broker further build your profile so they can better match you to a business in the future. It will also help you understand if you asked the right questions or how the owner perceived you.

10.If the business is a match and you want to take it to the next level, tell the broker immediately. Get ready to write an offer if you think it is a hot business. Good businesses sell fast and you need to act quickly if you find the right one.

Remember this is not your last chance to gather information. Your goal in the first meeting is to establish a relationship with the owner and to "try the business on for size". Due diligence comes later.