Manage episode 298162059 series 2516734
Part 3 in a series of videos on what what Brian looks for in companies.
Qualities business investors look for number three.
Hi I’m Brian Pombo, welcome back to Brian J. Pombo Live.
I am a business investor, I look at a lot of different businesses for a lot of different reasons. Sometimes I’ve had businesses that I’ve looked at purchasing, I’ve had more often than not, I go in, and I look for ways that I can partner with the business because I could see missing elements or elements that can be tweaked just ever so slightly, to have a huge gain.
And if I can partner up with the owner, for any number of ways of doing that, and be able to help them to tweak something where we can all profit off of it, it helps everybody.
These are some of the things that I look for in a business in the most ideal scenario, the things I would look for in a business if I were just straight in going in and purchasing the business or looking to partner up with them, these are the things that I look for.
So we went through number one and number two, and today I’m going to go through number three. And number three is one of those things that is it’s not quantifiable.
In a numbers situation, it’s more of a very much a very clear track record. That is being set by the owner or owners.
Number three is what I call universal communication.
Does the owners do the leadership of the company?
Do they communicate across the board?
So are they communicating with staff?
Are they communicating with vendors?
Are they communicating with investors and other owners or people that have ownership in the company?
And most importantly, are they communicating with their current customers?
If those communications like if any one of those communication lines is broken, it’s usually broken across the board. How you communicate with one is oftentimes how you communicate with all.
And one of the most common things that honestly this will completely negate deal so often, is if I go in, and I see all the good things happening, but I see that they’re not communicating properly, either misleading people or just not communicating, shutting off communication lines between themselves and the people that matter in their company.
That that that’s a big red flag and it’s a tough thing to dig out of. Because it’s almost like PR, even if it’s PR between you and your staff, it’s really something difficult to change, because you’ve created a system of distrust.
There’s distrust between you and your staff. And there’s going to be distrust between you and everybody that your company touches, guaranteed. I’ve seen it too often, for it not to be true.
That’s why it makes it extremely difficult for anyone to come in, and partner up and attempt to fix or improve any element of that company. Because it’s rotten at a foundational level.
I don’t like using the term rotten, because it’s oftentimes really good people neglect communication. If they’re not good at it, they usually have not hired someone else that’s good at it and it absolutely needs to happen.
One of my clients went through a similar situation for years and years, where it was just nearly impossible to keep the communication game up and be able to do all the things that he was great at.
I told him, he needed an operations manager, he needed somebody in operations that could run all of that and can do the communication necessary to take the business to the next level.
Otherwise, the business is always going to it’s always going to hit its head against the ceiling.
Eventually, it happened and great things began occurring. Every time that operations manager is not able to do their job though. Everything falls apart. It’s super clear from a helicopter view or from an outsider’s view looking in what the problem is.
You got to be able to see it about yourself or you’ve got to be able to listen to somebody that has that view. And realize that about yourself that you’re not a good communicator and you need a communicator.
Universal communication is the goal you need to communicate all around to everybody that your business touches or that you want it to touch. That’s it simple principle.
Very difficult to teach, very difficult to change once the wrong pattern has been set into play. Hopefully that makes sense to you.
Tomorrow, I’m going to go through number four, the fourth element that business investors are going to look for, at least from my perspective as a business investor, so we’ll go over that tomorrow.
In the meantime, go check out my book, 9 Ways to Amazon-Proof Your Business you get a free copy at AmazonProofBook.com. We’ll be back tomorrow night. You have a great night. Get out there and let the magic happen.The post Qualities Business Investors Look For: No. 3 🕵️ (Universal Communication) first appeared on BrianJPombo.com.