Michaels 10 Commandments

“When I say something I want you to think of it as if it was coming from the Burning Bush” – The Great Santini

By the way great movie….if you have not seen it….stop do not pass go and go read it.

Now for you Instgram Course Folks let me distill buying a business down to something really simple….the 10 Commandments….oh and for more biblical analogies….all that garbage you got on “The Gram” well think of that as the Golden Calf…a false god so to speak

The 10 Commandments of Main Street Acquisitions

1. Pay for the Past, Prepare for the Present, Buy for the Future

Valuation isn’t a guessing game or a projection of what could happen under perfect conditions. You value a business strictly on its hard, historical data. When you walk in on Day One, expect to find a seller who has taken their foot off the gas—that’s your present reality. But you only close the deal if there is a clear, repeatable path to future profitability.

2. Buy a “Good” Business and Make It Great

Don’t fall into the trap of buying “garbage” just because the entry price is cheap. Turnaround projects consume massive amounts of time and capital, and the failure rate is brutal. Find a solid, fundamentally sound business with steady cash flow, and use your expertise to optimize and scale it. It’s a lot easier to take a B+ business to an A than to revive a failing one.

3. A Recipe Beats Raw Ingredients Every Time

A collection of assets, a lease, and some inventory do not make a business. Without a proven, repeatable “recipe”—documented operational processes, a solid workflow, and a functional system—you just bought yourself a disorganized, stressful job. Look for structured operations that can run smoothly without constant reinventing of the wheel.

4. Fall in Love with the Profit, Never the Product

Keep emotion entirely out of the equation. It doesn’t matter if the business sells widgets, fixes roofs, or cuts lawns. Ego-driven buyers purchase businesses because they like the prestige of the industry, and they usually overpay. You are buying a cash-flow vehicle and an ROI, not a hobby. If the net margins and the financial structure don’t make sense, walk away.

5. Match the Revenue Driver to Your Core Strength

Every business has one critical engine that drives its growth—whether it’s high-touch B2B sales, digital lead generation, or operational efficiency. If that primary driver relies on a skill set you don’t possess or care to learn, the acquisition is a mismatch. Ensure the business’s growth leverage point aligns perfectly with what you do best.

6. Aim for 75% Automation

If the owner is the business, you aren’t buying an enterprise—you’re buying a job. Look for operations where at least 75% of the day-to-day workflow, customer fulfillment, and administrative tracking are automated or handled by a trained team. The business must be capable of running smoothly when the owner steps away.

7. Identify the Real “Boss” (Mitigate Concentration Risk)

Before you sign an LOI, find out who holds the real leverage. If 40% of the revenue comes from a single client, or if the entire supply chain relies on one exclusive vendor contract, that outside entity is the real boss. High customer or supplier concentration risk can kill a business overnight. Make sure the revenue base is diversified and secure.

8. Buy Something You Can Stand Behind with Pride

Even with automation and a great team, you are going to invest your time, energy, and reputation into this company. If you are embarrassed to tell your peers, your neighbors, or your family what your business does, your lack of enthusiasm will eventually bleed into performance. Buy something you can lead with genuine pride and confidence.

9. Isolate the Imperfections and Fix Them

No business is perfect, and honestly, you don’t want it to be. A business with minor operational flaws, outdated marketing, or sloppy systems is exactly what you’re looking for—that’s where the immediate upside lives. Identify the owner’s operational neglect during due diligence, map out the fixes, and execute them post-closing to drive immediate equity growth.

10. Shut Out the Noise—You Are the Only Critic Who Matters

When you’re working a deal, everyone will have an opinion—friends, family, and unqualified third parties who have never closed a transaction in their lives. Listen to your specialized deal team (your CPA and your attorney for technical verification), but remember that you are the investor taking the risk. If the numbers pencil out, the debt service works, and the strategy fits your goals, trust your gut and pull the trigger.