1) Personal drivers:
Pinpoint what motivates you to buy a business, such as wanting to work for yourself or investing recent financial gain.
2) Financial ability:
Understand what you can afford and how you will obtain capital through personal savings, investors, or bank loans.
3) Business compatibility:
Consider what role you will play in the business: CEO, content creator and/or owner? Focus on SDE vs. adj. EBIT accordingly.
4) Your unfair advantage:
Determine any unfair advantages you have, be it through know-how, personal relationships, industry connections or insider news and match these with your personal drivers and business opportunities.
5) Expansion potential:
Identify the business’s opportunities for growth, such as expanding horizontally/vertically.