Chris works in the construction trade and recently reached out with a timely question.
He's been talking with the owner of the company he works for about potentially buying the business. They’ve agreed to wait until February—when things slow down in the construction season—to really dig into the conversation. In the meantime, Chris wants to know:
“What kind of prep work can I be doing now to get ready?”
Great question, Chris—and it’s one I hear often.
The Temptation: Planning to Grow the Business
Chris mentioned that he’s already been brainstorming ways to expand the business—new services, product lines, or work types. This instinct is natural (and exciting). But here’s a big caution flag I need to wave:
Be careful not to get “buyer fever.”
When you start imagining all the amazing things you’ll do after you buy the business, it’s easy to become emotionally attached to the idea of ownership. This can cloud your judgment, reduce your willingness to negotiate, or make you overlook red flags.
The Right Focus: Learn the Acquisition Process
Before you fantasize about growth strategies or operational tweaks, your energy is much better spent learning the process of buying a business—the mechanics, the risks, the legal pitfalls, and the financial analysis skills you'll need.
You already know construction. But how much do you know about:
Negotiating a deal structure?
Doing proper due diligence?
Evaluating working capital and cash flow?
Managing post-sale liability?
If your answer is “not much,” that’s exactly where your focus should be.
Don’t Get Distracted by Start-Up Thinking
There’s another danger in going too deep on growth planning before you’ve bought the business.
You may start thinking, “Why don’t I just start something from scratch?”
Big mistake.
One of the biggest reasons to buy a business is to avoid the risk of start-ups.
Established businesses come with revenue, staff, systems, and—importantly—customers. Don’t trade that for a dream that might not get off the ground.
Research the Right Stuff
Here are a few smarter ways to spend your prep time:
✅ Learn the Buying Process
Take a course (like my Business Buyer Advantage) or read up on real-world acquisition stories.
✅ Network with Industry Buyers
Reach out to others who’ve bought construction businesses. Learn what they wish they knew beforehand.
✅ Investigate Legal and Liability Issues
Construction businesses often come with long-tail risks:
Workplace safety claims
Warranties on past work
Workers' comp exposure
Environmental or permit issues
If you’re considering a share purchase, you need to understand what liabilities might follow you post-sale. A good lawyer and accountant are crucial here.
✅ Understand the Value of the Business History
One tricky balance in construction is that a business’s history can be both an asset and a liability.
It may help with bonding eligibility and access to government contracts.
But it can also mean you inherit risks you didn’t create.
Final Thoughts
Chris, you're already ahead by asking the right question. The key now is to use your time wisely and stay grounded in the real purpose of buying a business:
To acquire something that works today—not just something with future potential.
If you’re in Chris’s position—or thinking about buying any kind of business—head over to www.BusinessBuyerAdvantage.com to check out the Business Buyer Advantage online course. It’s the same material I cover in my live seminars, condensed into nine hours of actionable, real-world instruction.
Don’t forget—join my email list for early access to my latest videos and insights at DavidCBarnettList.com. You’ll even receive 7 FREE gifts when you sign up.
Thanks for reading—and if you’ve got your own question about buying or selling a business, send it my way!
– David Barnett
