Mistakes I’ve made buying my first biz:

- not having an earn out where seller is on the hook for a year (min 6mo I’d say)
- margin too low to effectively hire
- underestimating working capital needs (very diff from software)
- weak diligence in their gtm channels

(…prob more gotchas that I fell for)

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Coming from software, embarrassingly never paid attn to WC or a cash flow statement till I bought this biz

Then I was like o shit

Can DM more or send excel, but tldr; 
- can be profitable but die from neg WC
- pushing back net+X payable can squeeze sig margin from biz
- good LOC terms is critical bc eats into margin

Can you say more about the working capital issues?

Would love tangible examples if you can share

Principal at Cobalt Ventures. Write @ TheItinerant.io ; BenErsing.com Host: /venturecapital /finance /adventures

Part of it! needed to find time to down on main biz now 😅