| Number four in a series taken from: How to | | | | build a boat business. He was very happy to show |
| Evaluate and Profit from a Business Opportunity | | | | me all I could learn. It was only after I saw the |
| To steal a technique from Peter Lynch, one of | | | | problems the industry had regarding warranty |
| the world's most successful mutual fund | | | | work that I became concerned if there was a |
| managers (Fidelity's Magellan Fund) in his book | | | | future for me in that industry. When a problem |
| "One up on Wall Street;" look in your own | | | | occurred the dealer tried to collect from the |
| neighborhoods, focus on businesses that you like | | | | manufacturer who said that the motor wasn't |
| to do business with, look for the ones that you | | | | their problem, they only made the boat. The |
| can understand and that do a good job. When | | | | motor company said that the boat manufacturer |
| you find such a business think about how it fits | | | | must have set the boat up incorrectly, the dealer |
| with you self-assessment review. The more | | | | was forced to question the customer about |
| connections you start getting, the more likely you | | | | possible misuse -- everybody was fighting with |
| and such a business will make a good match. | | | | everybody and the boat owner was sorry he |
| When you find a business you feel comfortable | | | | ever bought a boat. |
| with and like, go back at slow periods and talk | | | | So what did I do? With my significant other's |
| with the manager, or better yet, the owner. Build | | | | keen insight, skills, and talent, we developed |
| a relationship. Tell him or her what you have in | | | | relationship building newsletters that boat dealers |
| mind. You may be surprised at what you learn. | | | | could send four times a year to their prospects |
| They may know of a business like theirs for sale | | | | and customers which told how that dealer was |
| in a nearby town. They may be thinking about | | | | different from all the rest. At one point we were |
| expanding to a second location but lack the | | | | sending out 65,000 copies a quarter. We soon |
| necessary capital or have not yet found the | | | | began giving workshops at the annual boat |
| person they would put in charge. | | | | retailer's convention on how to build customer |
| Offer to work there -- to learn the business. | | | | relationships. |
| Present yourself as a possible partner, or | | | | The only way to find and define opportunities is |
| manager. | | | | to get the word out that you are looking to buy |
| If you are fortunate to find a business that is | | | | or build a business. Tell everyone you know; go to |
| really doing well, you will learn all the right things to | | | | as many business networking meetings and |
| do. If it isn't doing so well, perhaps you will pick up | | | | community involvement meetings as you can. |
| on what the owner is doing poorly, or even | | | | Subscribe to the Sunday editions of all the major |
| better what's been tried without success. Employ | | | | newspapers in your area and comb the classifieds. |
| the six-sigma technique -- ask "Why?" -- until you | | | | Contact the brokers or owners of opportunities |
| finally hear the real reason, not the ones | | | | for sale and ask for information. |
| everybody just guesses at. If you don't hear an | | | | Follow up on anything that looks interesting. Keep |
| answer that makes sense, management may be | | | | in mind that as with dating, it's highly unlikely you |
| the problem. | | | | will marry the first person you date, but it's quite |
| When I was thinking about owning a boat | | | | possible that you will marry someone that first |
| dealership, I went to work for a service-only shop | | | | date introduces you to. |
| -- to learn what was involved in fixing boats and | | | | Use the To Do list at the end of Chapter Four in |
| motors. I told the owner that I wanted to buy or | | | | my book to help you define opportunities. |