This is a valuable thread and @XavierHelgesen has excellent intentions. If you were planning to buy a SMB using the SBA, the deal got sweeter.

That said, there are caution flags I'd like to raise:

1) It's brutally hard. I outline the steps here https://t.co/MZ0beEl0UU

2) Selecting well, and far beyond financials factors, is a skill that takes reps to become proficient. What I thought were slam dunks 10 years ago scare me today.

Please don’t get jacked up on cheap SBA money and go tag the 14th thing you look at.
3) The required personal guarantee is no joke. Yes, it’s 10 year money. Yes, you’re going to buy it at a high cf yield. But, SMBs are volatile and often for reasons that aren’t initially obvious.

If things turn against you, you’ll declare bankruptcy. Seen it happen. Not pretty.
4) You’re almost always buying a risky job.

The idea of cashing checks and “allocating capital” is a joke. Someone somewhere has done it, but I’ve never seen it.

It’s going to be a challenging 7/365 grind to hopefully make very good money. That’s the best you can hope for.
5) Speaking of risk, as the owner, you’re the last to eat. Stuff happens and reserves need to be built to survive long-term. Working capital grows. Equipment breaks.

You’ll often have top employees getting more cash out of the business than the owner.
I use the Rule of 3. You should be able to consistently make 3X the amount you could W2 for the risk to be worth it. Consistently being the key word. Not once. But almost every year.
6) Skill set matters. If you’re an Excel wiz, great. That's only marginally useful post-close and you’re likely lacking the in-the-trenches experience that will make/break it.

There's a chasm between the world of finance and operations. If this is surprising, be worried.
If you’re a skilled operator, make sure you know your way around the financial statements, understand the competitive advantage(s), and especially pay attention to cash flow.

Cash is like oxygen. You only pay attention to it when it's in short supply and that's often too late.
7) Operating stress, especially with your net worth on the line, is intense and often ever-present.

You will get sued. Someone will steal from you. You’re going to violate some government law you didn’t know about.

On top of the normal customer, supplier, employee stress.
Now that I’m done clubbing baby seals, if none of this gives you pause, go for it. There’s gold in them there hills, but just know the hard work, emotional toll, and risk you’re taking on.

And, it can be outrageously rewarding.

Cheers to a prosperous 2021 and happy hunting.

More from Tech

Thought I'd put a thread together of some resources & people I consider really valuable & insightful for anyone considering or just starting out on their @SorareHQ journey. It's by no means comprehensive, this community is super helpful so no offence to anyone I've missed off...

1) Get yourself on the official Sorare Discord group
https://t.co/1CWeyglJhu, the forum is always full of interesting debate. Got a question? Put it on the relevant thread & it's usually answered in minutes. This is also a great place to engage directly with the @SorareHQ team.

2) Bury your head in @HGLeitch's @SorareData & get to grips with all the collated information you have to hand FOR FREE! IMO it's vital for price-checking, scouting & S05 team building plus they are hosts to the forward thinking SO11 and SorareData Cups 🏆

3) Get on YouTube 📺, subscribe to @Qu_Tang_Clan's channel https://t.co/1ZxMsQR1kq & engross yourself in hours of Sorare tutorials & videos. There's a good crowd that log in to the live Gameweek shows where you get to see Quinny scratching his head/ beard over team selection.

4) Make sure to follow & give a listen to the @Sorare_Podcast on the streaming service of your choice 🔊, weekly shows are always insightful with great guests. Worth listening to the old episodes too as there's loads of information you'll take from them.

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शमशान में जब महर्षि दधीचि के मांसपिंड का दाह संस्कार हो रहा था तो उनकी पत्नी अपने पति का वियोग सहन नहीं कर पायी और पास में ही स्थित विशाल पीपल वृक्ष के कोटर में अपने तीन वर्ष के बालक को रख के स्वयं चिता पे बैठ कर सती हो गयी ।इस प्रकार ऋषी दधीचि और उनकी पत्नी की मुक्ति हो गयी।


परन्तु पीपल के कोटर में रखा बालक भूख प्यास से तड़पने लगा। जब कुछ नहीं मिला तो वो कोटर में पड़े पीपल के गोदों (फल) को खाकर बड़ा होने लगा। कालान्तर में पीपल के फलों और पत्तों को खाकर बालक का जीवन किसी प्रकार सुरक्षित रहा।

एक दिन देवर्षि नारद वहां से गुजर रहे थे ।नारद ने पीपल के कोटर में बालक को देख कर उसका परिचय मांगा -
नारद बोले - बालक तुम कौन हो?
बालक - यही तो मैं भी जानना चहता हूँ ।
नारद - तुम्हारे जनक कौन हैं?
बालक - यही तो मैं भी जानना चाहता हूँ ।

तब नारद ने आँखें बन्द कर ध्यान लगाया ।


तत्पश्चात आश्चर्यचकित हो कर बालक को बताया कि 'हे बालक! तुम महान दानी महर्षि दधीचि के पुत्र हो । तुम्हारे पिता की अस्थियों का वज्रास्त्र बनाकर ही देवताओं ने असुरों पर विजय पायी थी।तुम्हारे पिता की मृत्यु मात्र 31 वर्ष की वय में ही हो गयी थी'।

बालक - मेरे पिता की अकाल मृत्यु का क्या कारण था?
नारद - तुम्हारे पिता पर शनिदेव की महादशा थी।
बालक - मेरे उपर आयी विपत्ति का कारण क्या था?
नारद - शनिदेव की महादशा।
इतना बताकर देवर्षि नारद ने पीपल के पत्तों और गोदों को खाकर बड़े हुए उस बालक का नाम पिप्पलाद रखा और उसे दीक्षित किया।