"I've looked at over a hundred businesses in the past year and I'm no closer to buying than when I started."
We hear this frustration from business buyers all too often.
Many approach the acquisition process like wandering through a vast marketplace without a shopping list—hoping the perfect opportunity will somehow jump out at them.
The endless scrolling through business listings across manufacturing, retail, services, and tech can quickly become overwhelming.
But experienced buyers know a critical truth: before you can find the right business, you need to know what type of business to look for in the first place.
This article focuses on one of the most energizing and creative parts of the business buying journey: systematically brainstorming potential business types that align with your strengths, goals, and vision.
Whether you're just beginning your search or feeling stuck in a cycle of endless browsing, this approach will help you discover opportunities you might otherwise miss.
Brainstorming Your Boring Businesses
This is where the fun begins.
It's time to let your imagination roam free and explore all the potential businesses that might align with your carefully defined criteria.
Don't worry about being practical just yet - this is your chance to consider a wide range of possibilities.
Why focus on "boring" businesses? Because contrary to popular belief, the most successful acquisitions are often found in established, straightforward industries rather than cutting-edge or trendy sectors.
As the saying goes, "boring businesses make exciting returns."
The Power of Open-Minded Exploration
Take out a blank sheet of paper and start listing every business type that sparks even a modest flicker of interest.
This is a judgment-free exercise - no idea is too small or too ordinary at this stage.
Consider:
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A neighborhood bookstore
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A commercial cleaning service
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A landscaping company
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A specialty bakery
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An online e-commerce store
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A self-storage facility
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A pet grooming salon
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A property management business
Keep writing until you have at least 10-15 options.
You'll be surprised how this process helps uncover possibilities you might never have considered otherwise.
Finding the Sweet Spot
The ideal businesses for most first-time buyers share these characteristics:
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Easy to understand: Can you explain the business model in a single sentence?
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Documented profitability: Look for businesses with several years of consistent earnings
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Straightforward operations: Avoid complex technologies or rapidly changing markets
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Stable customer base: Recurring revenue or strong repeat business is ideal
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Reasonable learning curve: While you don't need industry experience, you should be able to grasp the fundamentals relatively quickly
As one experienced business buyer shared: "I initially wanted something cutting-edge in biotech because it seemed impressive.
I ended up buying a commercial cleaning company with 15 employees and haven't looked back.
The business is simple to understand, has predictable cash flow, and I don't wake up worried about technological disruption or obsolesce."
The 100-50-10 to 1 Rule: A Strategic Approach
Finding the right business requires reviewing many opportunities.
In our community of over a thousand business buyers, we've observed that the average buyer examines more than 30 potential acquisitions before finding their match.
To streamline this process, we recommend following the 100-50-10 to 1 Rule:
Step 1: Look at 100 Businesses at a High Level
Begin by examining approximately 100 businesses that broadly match your criteria.
This initial review is quick - just enough to get a general sense of each opportunity.
Spend only 10-15 minutes per business at this stage, reviewing basic information like:
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Industry and business model
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General location
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Approximate size (revenue and employees)
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Asking price range
Step 2: Analyze 50 at a Secondary Level
From your initial 100, select the 50 most promising opportunities for a deeper look. At this level, you might:
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Request basic financial information
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Have preliminary conversations with brokers
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Research the industry more thoroughly
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Consider how each business aligns with your Deal Box criteria
Step 3: Do Deep Due Diligence for 10
Now narrow your focus to the top 10 prospects.
These deserve comprehensive investigation, including:
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Signing non-disclosure agreements (NDAs)
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Reviewing detailed financial statements
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Submitting letters of intent (LOIs)
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Meeting with sellers
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Conducting formal due diligence
The Result: Find the 1 You Should Buy
After this methodical process, you'll likely identify the one business that truly meets your criteria and feels right.
As Warren Buffett wisely noted, "No matter how great the talent or efforts, some things just take time.
You can't produce a baby in one month by getting nine women pregnant."
Embrace the Journey
Don't view this extensive review process as daunting.
Instead, see it as an educational journey that builds your business acumen with each opportunity you evaluate.
Each business you examine teaches you something valuable about valuation, operations, industry dynamics, and negotiation.
The best way to determine if a business is a good deal is by comparing it to other deals.
A mentor from Goldman Sachs once advised, "Nothing is ever good or bad except by comparison."
This is why reviewing multiple opportunities is so crucial - it builds your context and reference points.
Starting Simple
If you're just beginning your acquisition journey, we strongly recommend keeping your focus narrow.
For example, if you have experience in the cleaning industry, start by looking specifically for cleaning businesses in your local area.
Keep it simple. Focus on established businesses with documented profitability rather than complex operations or turnaround situations.
As one buyer put it: "You don't want to acquire a human genome mapping company or an artificial intelligence lab for your first purchase. That's a recipe for disaster."
Moving Beyond the Brainstorm
Once you've generated your list of potential business types, it's time to start actively searching for specific opportunities.
This is where you'll transition from theoretical exploration to practical dealmaking - reaching out to brokers, scanning listing sites, and networking with business owners in your target industries.
Remember that in our digital age, successful business acquisition still requires personal connection.
The next phase will involve shaking hands and meeting people in real life - building relationships that could lead to your perfect business match.
Your Next Step
Ready to start brainstorming potential businesses that match your criteria?
Begin your list today, then explore our current listings of successful businesses for sale at BusinessForSale.com.au