Buying a small business can be one of the best moves you ever make – but it can also be one of the riskiest if you don’t know what you’re doing.

After five years running the Acquisition Lab and having thousands of conversations with serious buyers, one thing is clear: most first-time buyers don’t fail because they lack intelligence or drive.

First-time buyers fail because they don’t see the hidden risks piling up beneath the surface.

In a previous Office Hours, Acquisition Lab co-founder Chelsea Wood broke down the 10 most common (and costly) mistakes we see buyers make, often without even realizing it.

If you’re serious about buying a business – and buying it the right way – here’s what you need to know.

 

1. Stop Confusing Search Fund Advice with Self-Funded Strategy

If you’re self-funding your search, you don’t need to follow the traditional search fund playbook.

You don’t have to quit your job immediately. You don’t have to move anywhere in the country. You don’t have to only target businesses with $1M+ in EBITDA.

That’s advice for funded searchers managing investor expectations – not for you.

 

Source: SearchFund.org

 

If you’re self-funded, you’re the one setting the parameters. Build a strategy that actually fits your life, your goals, and your risk tolerance.

The reality is, the metrics that matter to investors are very different from the metrics that should matter to you as an operator. You’ll be the one running the business, not reporting back to a board.

And for what it’s worth – plenty of successful buyers have run effective searches part-time. You don’t have to blow up your life to buy a great business. You just need a plan that’s built around where you are now and where you want to go.

 

2. Minimize Risk – Don’t Stack It

Buying a business is risky enough on its own. But what a lot of first-time buyers do – without realizing it – is layer more risk on top:

• Buying far from where they live
• Jumping into industries they don’t know
• Betting on growth they can’t personally drive
• Quitting their income source too early
• Underestimating how much cash the business will need post-close

One risk factor? You can manage.

Stack three or four? You’re asking for a disaster – especially with personally guaranteed debt on the line.

The goal isn’t to “buy a business.”

The goal is to buy a business without making a mistake.

Keep it simple:

• Buy nearby.
• Buy where you bring experience.
• Keep cash flowing until your deal closes.
• Plan for working capital shocks.

Don’t stack risks you don’t need. Play the long game – and give yourself a real shot at winning.

 

3. Don’t Fall into the Superman Complex

A lot of smart, capable people come into the search process thinking, “I can do anything.” I get it – when you’ve had success before, it’s easy to think you’ll figure it out again.

But the reality is, small business ownership isn’t clean. It’s not corporate. It’s not theoretical.

It’s messy, emotional, and personal – every single day.

If you’re scrolling listings thinking, “I could do that… and that… and that,” slow down.

You’re not looking for something you could survive. You’re looking for something you can win at.

 

 

Anchor your search where you already have pattern recognition: Skills you’ve used. Problems you’ve solved. Teams you’ve led.

Buying a business is buying a set of problems – the fewer you have to learn from scratch, the higher your odds of success.

 

4. Searching While Working? It Has to Be a Top Priority

Plenty of buyers search for a business while working full-time.

It’s absolutely doable, but only if your search becomes one of the top two priorities in your life.

It can’t be something you “fit in” when it’s convenient. It has to stand alongside your other biggest commitments – your family, your career, your future.

 

 

That might mean giving up some nights, weekends, or vacations.

It might mean hiring a VA to help with the tedious work.

It might mean saying no to other good opportunities so you can stay focused on the best one.

If your search isn’t a true priority, it will lose momentum or drag on far longer than it needs to.

Good deals move fast. The buyers who close are the ones ready to act – not just when it’s easy, but when it matters most.

Structure your time now so you’re ready to move when the right deal appears.

 

5. Blanket Emailing Brokers Doesn’t Work

One of the biggest mistakes buyers make is blasting out cold emails to brokers, hoping something sticks. It almost never does.

If you want brokers to take you seriously, you have to be more intentional.

• Start by reaching out about a specific listing.
• Show them you’ve done your homework.
• Make it clear that you’re serious, focused, and ready to move if the right opportunity presents itself.

Every interaction you have – from your emails to your buyer profile to your first phone call – is building a reputation.

 

Source: QuietLight

 

You want that reputation to say one thing clearly: I’m a credible buyer who’s ready to close.

 

6. Stop Asking for Too Much, Too Soon

Another way buyers get themselves in trouble is by asking brokers or sellers for too much access before it’s appropriate – detailed contracts, employee interviews, customer lists.

Even if you’re asking with good intentions, it can trigger a seller’s natural instinct to pull back.

You’re not just asking for information — you’re pressing on their sense of security. That’s how otherwise good deals start to fall apart.

At every stage of the process, get clear on what’s appropriate.

Ask yourself:

“What do I absolutely need to move forward?”

If it’s not necessary for the next step, hold it for later. There’s a right time for deeper diligence, and patience early on protects your momentum later.

 

7. Understand What an LOI Really Is

There’s a lot of fear around submitting Letters of Intent (LOIs). People think it’s a huge commitment. It’s not.

An LOI isn’t a marriage proposal – it’s a promise ring. It says, “Based on what I know right now, I want to move forward and learn more.”

 

Source: DealRoom

 

You don’t need to have all your questions answered before submitting. You don’t need to have negotiated every little deal term. You need to be serious – but you also need to move quickly.

Waiting too long on a good listing because you’re “not ready” is how deals slip away.

Make your move while the opportunity is still yours to take.

 

8. Don’t Try to Play Private Equity

Some buyers think they need to look bigger than they are – talking about “our firm” and “our capital partners” like they’re a PE fund.

You’re not fooling anyone.

Sellers and brokers value authenticity. They want to know who you are as a human – not a brand name or a vague entity. They want to trust who they’re handing their business over to.

The more you show up as a real, credible individual, the more memorable — and successful — you’ll be.

Lead with who you are — and build trust from the very first conversation.

 

9. Don’t Expect to Stay Hands-Off

One of the fastest ways to blow up your deal post-close? Buy a business and immediately put someone else in charge while you keep your day job.

It almost never works – unless you already have a trusted operator lined up.

You have to get in there. You have to learn the business yourself. You have to establish yourself with the employees, the customers, the suppliers.

 

Source: Someecards

 

Maybe 12–18 months down the line, you can put a GM in place and move on to the next thing, but you have to earn that right.

Plan to be active from day one – so you can build the foundation that will eventually let you step away.

 

10. Remember: This is a People Business

At the end of the day, the acquisition game is a people game.

The buyers who succeed are the ones who understand this:

• Brokers don’t want tire-kickers.
• Sellers don’t want to hand their legacy to someone they don’t trust.
• Lenders want borrowers they believe can pull it off.

If you focus on building real relationships, moving quickly but thoughtfully, and reducing risk at every turn, you’ll stack the odds heavily in your favor.

Buying a business isn’t just a financial transaction. It’s a responsibility – taking the keys to something someone else spent a lifetime building, and making it even better.

Slow down where it matters, move fast where it counts, and lead every step with integrity.

Because the goal isn’t just to buy a business. It’s to build a life – and a legacy – you’re proud of.

If you’re looking to acquire a business in the next 12 months, the Acquisition Lab is your first stop. Reach out to us today and get on the fast track to becoming an acquisition entrepreneur.