Skip Harvard, Just Follow The Money: Learn The Moves Leading Harvard Grads To Turn Down $300K Salaries

Harvard University graduates with master’s degrees in business are passing up $300,000 salary offers to buy blue-collar businesses. @itsDanny_V took to Twitter to explain how you can follow in their footsteps.

Steps To Get Started: You don't need a degree from Harvard to invest like a Harvard grad, but you need to tackle some information one way or the other. @itsDanny_V recommended checking out the book "Buy Then Build: How Acquisition Entrepreneurs Outsmart the Startup Game" by Walker Deibel.

Another way to get a head start is by listening to podcasts like "Let's Buy a Business" and "Acquisitions Anonymous." These resources will help you get ahead of 99% of other people looking to do the same thing, he said. 

When you start looking for a business to buy, you want to define your search by budget, industry and location. Look for something that complements your background, he noted. 

Next, you'll need funding. Although there are many ways to come across capital, the two primary sources are debt and equity. Equity is expensive, so you should aim to use as much responsible debt as possible, @itsDanny_V said.

An SBA 7(a) loan, for example, can cover up to 90% of the purchase price and offers low-interest rates. However, you are putting your personal assets on the line. Another route is seller financing, an agreement that allows the buyer to make incremental payments to the seller on the purchase.

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With financing secured, it's time to start your search for a business. Sites like LoopNet, Axial.net, BizBuySell, BusinessesForSale and BusinessBroker.net are all good tools, he said. 

Once you find a solid target, schedule a call with the seller and figure out what you think the business is worth. 

"Do not be afraid to submit an indication of value (well) below the asking price," @itsDanny_V said. 

If the seller is interested, you should prepare a letter of intent to submit your offer. If the LOI gets mutually executed, you can protect yourself by hiring some experts for areas like legal and taxes. 

From there, the attorneys will prepare a purchase agreement and an escrow company will handle the funds. That's where the easy part ends and the real challenge begins: running your business.

"Getting a deal across the finish line is the easy part. Earning the respect of your new employees, transitioning systems, executing a growth strategy ... That's the hard work. But you're the CEO. So go make it happen," @itsDanny_V said.

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Photo: David Mark from Pixabay.

This story is part of a new series of features on the subject of success, Benzinga Inspire.