For many first-time buyers, the biggest fear in acquiring a business is not knowing what they do not know. Success often feels uncertain, especially without direct industry experience. Yet as entrepreneur Sushant Bharadwaj proves, the key to moving forward is not perfection. It is focusing on fundamentals, building trust, and treating banks and sellers as true partners in the process.

In a recent episode of Before You Buy or Sell a Business, hosted by Jared Johnson, Sushant shared his journey from consulting to acquiring two e-commerce businesses. His story offers valuable lessons for anyone considering entrepreneurship through acquisition (ETA), particularly in the online business space.

From Consulting to Business Ownership

Sushant’s background was in technology consulting, working on ERP systems and supply chain solutions for Fortune 500 companies. When the pandemic accelerated digital transformation, he saw an opportunity to apply his skills to small business ownership.

Like many buyers, he began his search on BizBuySell, reviewing hundreds of listings before narrowing down to opportunities that matched his financial and operational comfort zone. His approach was shaped by a simple but powerful filter: Is the seller trustworthy, and are the financials clean enough to rely on?

Building Partnerships with Banks and Sellers

Instead of viewing banks and sellers as obstacles, Sushant saw them as partners invested in his success. By being transparent and straightforward in his answers, he built confidence on both sides. If a lender raised a concern, he treated it as a signal to look more closely rather than something to work around.

This perspective helped him move through financing and negotiations with clarity. “The bank wants you to succeed,” Sushant explained. “They have a vested interest in your success because they are lending you the money.”

Due Diligence in E-Commerce

E-commerce businesses can be difficult to fully verify. Unlike brick-and-mortar businesses, financial and operational details may not be as straightforward. Sushant’s solution was to spot-check key indicators instead of chasing perfect certainty:

• Customer lists and email engagement rates
• Facebook ads spend versus reported metrics
• Website traffic patterns and geographic distribution
• Repeat customer data

By focusing on fundamentals, he gained confidence that the businesses he pursued were legitimate and sustainable.

Transition Planning and the First 30 Days

Closing on a business is only the beginning. For Sushant, the first 30 days of ownership proved to be the toughest. Moving inventory across the country created unexpected delays, and fulfillment was more complicated than anticipated.

With support from the sellers and careful coordination, he stabilized operations. Within weeks, he was running the business confidently and positioned for growth. The experience reinforced the importance of detailed transition planning before day one.

Lessons for First-Time Buyers

Sushant’s story highlights several important takeaways for aspiring business owners:

• Banks and sellers are allies, not adversaries
• Clean financials build trust and confidence
• In e-commerce, due diligence is about spot-checking key metrics
• Planning for the first 30 days can determine long-term success
• Strong networks shorten the learning curve and provide problem-solving support

Final Thoughts

Entrepreneurship through acquisition is not about knowing everything in advance. It is about trusting the fundamentals, building strong partnerships, and being willing to learn as you go.

Sushant Bharadwaj’s journey from consulting to closing two e-commerce deals is proof that with the right mindset and preparation, first-time buyers can succeed even outside their comfort zone.

Before You Buy or Sell a Business Podcast – Hosted by Jared Johnson

Closing on a business is only the beginning. Real success depends on how you manage the first years of ownership, the capital you bring to the table, and the partners you choose. In Episode 53 of the Before You Buy or Sell a Business podcast, host Jared W. Johnson talks with Jacob Hall, Founder and Managing Partner of Kando Capital, about the realities of Entrepreneurship Through Acquisition (ETA) and how to succeed as both an operator and investor.

Jacob shares how his background as an engineer and operator shaped his approach to working with self-funded searchers and independent sponsors. He explains why search can be a double edged sword, why alignment between investors and operators is essential, and how his firm structures equity to support both liquidity and long term ownership.

From Engineering to Entrepreneurship Through Acquisition

Jacob’s career began in engineering and corporate operations before he moved into leadership roles as a small business COO. In 2020 he discovered ETA and shifted from searching for a business to investing in entrepreneurs. His operational experience gave him insight into what operators truly need post-close, from managing working capital to building leadership teams.

At Kando Capital, Jacob and his partners raise capital from accredited investors and family offices to support operators pursuing acquisitions. Their approach emphasizes not only funding but also providing networks, strategy, and guidance.

Why Alignment Between Investors and Operators Matters

One of the strongest themes of the episode is alignment. Jacob explains that investors and operators must be on the same page about hold periods, liquidity preferences, and growth strategy. Misalignment leads to tension that can derail both the business and the partnership.

Kando Capital structures equity deals to balance near-term liquidity opportunities with long-term ownership potential. This ensures operators have both the motivation and the support needed to drive growth. Jacob highlights that transparency, communication, and trust are essential for building strong operator-investor relationships.

The J Curve and Working Capital Challenges

Jacob warns that many new owners underestimate the challenges of the first year after closing. The J curve is a common phenomenon where cash flow dips before stabilizing or improving. Without planning for this, operators can quickly find themselves under pressure.

Working capital is another underestimated factor. Owners must have enough cash available for payroll, vendor payments, and unexpected expenses. Jacob emphasizes that underfunded working capital is one of the most common mistakes new buyers make. Preparing for it upfront reduces stress and prevents early stumbles.

SBA Rule Changes and What They Mean for ETA

The conversation also covers recent SBA rule changes and their impact on investors and operators. Jacob explains how these changes affect deal structure, capital requirements, and what operators should expect when raising funds or applying for SBA-backed financing. While SBA lending remains a powerful tool for acquisitions, buyers and investors must understand the rules and plan accordingly.

Teaching and Mentorship in ETA

Mentorship has played a significant role in Jacob’s own career. Now, he is paying that forward by teaching ETA at the University of Texas. His goal is to prepare the next generation of operators by sharing lessons on alignment, capital structure, and the realities of running small businesses.

By contributing to the ETA community, Jacob hopes to foster transparency and build a network where investors and operators can learn from each other.

Key Takeaways from the Episode

• ETA requires commitment, maturity, and resilience from operators and investors
• Alignment between investors and operators sets clear expectations and prevents conflict
• The J curve is common in the first year and must be accounted for in planning
• Working capital is critical to avoid liquidity issues post-close
• Equity partners provide more than money, including strategy, networks, and support
• Mentorship and community help operators overcome challenges and grow stronger

Why This Conversation Matters

Jacob Hall’s perspective bridges the gap between investors and operators. With his operational background, he understands what entrepreneurs face after closing and what they need to succeed. His insights into SBA rules, equity structures, and alignment offer practical guidance for anyone pursuing ETA.

This episode is a reminder that acquisitions are not only financial transactions but also long-term partnerships. The right capital partners and the right planning can make the difference between struggling through the first year and building a business that thrives.

Listen to the Full Episode

You can stream Episode 53, Owning the Outcome: Jacob Hall on ETA, SBA Rules, and Operator Success, on the Before You Buy or Sell a Business podcast or wherever you listen to podcasts.

For more insights on ETA investing, SBA financing, and small business acquisitions, visit Jared W. Johnson’s website.

Before You Buy or Sell a Business Podcast – Hosted by Jared Johnson

At the heart of entrepreneurship is the responsibility to create value not just for yourself but for employees, customers, and the community. In Episode 52 of the Before You Buy or Sell a Business podcast, host Jared W. Johnson talks with Munashe Makava, an NYU MBA graduate who began his career at Deloitte and Goldman Sachs before stepping into entrepreneurship through acquisition.

Born and raised in Zimbabwe, Munashe credits his parents for instilling an entrepreneurial mindset early on. The birth of his first child became the catalyst to finally pursue ownership. Today he runs two concrete companies in the United States, navigating the realities of leadership, team building, and growth.

From Wall Street to Main Street

Munashe’s journey shows that entrepreneurship is not always about startups. Instead of creating a business from scratch, he leveraged ETA as a pathway to ownership. His strategy was not focused only on industry but on geography. Location determined the businesses he targeted and ultimately shaped his path.

Through this lens he discovered two concrete companies on BizBuySell that fit his criteria. Negotiations, tax considerations, and creative structuring allowed him to complete the acquisitions. But as he quickly learned, closing a deal is only the beginning.

Lessons from the First Year of Ownership

Munashe shares several lessons that stand out for first-time buyers:

• Entrepreneurship through acquisition requires grit and leadership, not just capital
• Geography can be a deciding factor that outweighs industry selection
• Building a strong deal team early can save opportunities later, particularly with tax strategy
• Relationships with brokers and sellers unlock creative deal structures
• Employees are the hardest part of the business and long-term success depends on building a culture of ownership
• Mentorship and networks multiply opportunities and provide guidance during uncertainty

Overcoming Post-Close Challenges

One of the toughest parts of Munashe’s journey came immediately after closing when he lost key operators in the business. He had to rebuild his team quickly while still learning the day-to-day operations. This experience underscored the importance of people. Financial modeling matters, but numbers alone cannot carry a business forward.

By investing in culture, building trust, and encouraging employees to think like owners, Munashe created an environment where people wanted to stay and contribute. His focus on leadership and resilience allowed the businesses not only to stabilize but to grow.

Mentorship and Paying It Forward

Munashe emphasizes that mentorship has been one of the most valuable parts of his journey. Having a network of peers and advisors provided both encouragement and tactical advice during difficult moments. Now, as an owner, he is committed to paying that forward by mentoring others who are considering ETA.

Why Purpose Matters

For Munashe, ownership is not only about financial return. Purpose drives his decision-making and his growth strategy. Building lasting businesses and creating opportunities for others is the ultimate reward. Entrepreneurship through acquisition has allowed him to combine his skills, his values, and his vision into a path that impacts not only his own family but also his employees and community.

Key Takeaways from the Episode

• Entrepreneurship is not limited to startups, ETA provides a pathway but still requires resilience
• Searching by geography can be as important as selecting an industry
• Building the right deal team, particularly for tax planning, prevents missed opportunities
• Relationships with brokers, sellers, and mentors create leverage during the acquisition process
• People and culture are the hardest part of ownership and the most critical factor in long-term success

Why This Conversation Matters

Munashe’s story is a reminder that acquisitions are more than financial transactions. They are about leadership, networks, and purpose. For anyone considering buying a business, this episode highlights the realities of search, acquisition, and post-close ownership. It is a powerful example of how personal motivation and entrepreneurial grit combine to create value for employees, communities, and future generations.

Listen to the Full Episode

You can stream Episode 52, Concrete Lessons: Munashe Makava on Family, ETA, and Building Businesses, on the Before You Buy or Sell a Business podcast or wherever you listen to podcasts.

For more insights on ETA, business acquisitions, and SBA financing, visit Jared W. Johnson’s website.

Before You Buy or Sell a Business Podcast – Hosted by Jared Johnson

What is the difference between starting a business from scratch and buying an existing one? In Episode 51 of the Before You Buy or Sell a Business podcast, host Jared W. Johnson sits down with Sathya Ramanathan, a former tech founder who grew and exited a software company before acquiring a light construction equipment dealership in Dallas-Fort Worth.

Sathya shares lessons learned from building and selling his first company, navigating a two-year transition with new management, and then stepping into acquisition entrepreneurship. He explains why buying an established company can sometimes be less risky than starting one from the ground up, the due diligence process he followed, and how he evaluates deals for long-term success.

From Startup Exit to Acquisition

Sathya began his career as a founder, scaling a software company and eventually selling it. His experience working with new management during the transition taught him the importance of strong relationships between sellers and buyers. That foundation made his next step into acquisitions a natural one.

He describes how acquisition allowed him to bypass the most difficult startup hurdles. Instead of creating a business from nothing, he was able to purchase a company with existing operations, revenue, and customers. However, Sathya emphasizes that this does not remove all risk. Success still requires clear due diligence, careful evaluation of fit, and disciplined financial planning.

Why Buying Can Be Less Risky Than Starting

According to Sathya, acquiring a company can provide a faster and more stable entry into entrepreneurship compared to starting a business. Established businesses have proven demand, customer relationships, and infrastructure in place. This stability can reduce certain risks, though it also brings its own challenges.

Sathya warns buyers not to underestimate the importance of fit. Matching your skills with the company’s needs is crucial. For example, operational experience, customer relationship management, or digital transformation skills can add immediate value to the right business. Without alignment, even a strong company may not thrive under new ownership.

Key Due Diligence Insights

Sathya outlines several diligence items he believes every buyer should evaluate:

• Working Capital: Ensure the business has sufficient operating funds post-close to avoid liquidity problems.
• Customer Concentration: Review how much revenue comes from a small number of clients and the risk that creates.
• Recurring Revenue: Businesses with recurring or repeatable revenue streams often provide more predictable growth.
• Location and Sector Fit: Define geography and industry preferences before launching a search to stay focused.

He also highlights the importance of flexibility when negotiating. Whether evaluating an asset sale versus a stock sale, setting working capital targets in the LOI, or negotiating terms with brokers, buyers who remain open often find better opportunities.

Building Relationships That Drive Success

Beyond the financials, Sathya stresses that vendor, customer, and employee relationships determine how smooth the transition will be. Trust is built before and after closing by showing respect for existing processes and avoiding rushed changes.

He cautions new buyers not to immediately implement major operational shifts. Instead, patience and observation allow the new owner to understand the business before making improvements. This approach builds credibility with employees and reduces disruption with customers and vendors.

Growth and Expansion Plans

Since taking over his dealership, Sathya has focused on long-term growth. His plans include digital transformation, improved marketing strategies, and evaluating potential expansion opportunities. By balancing patience with a forward-looking vision, he is laying the groundwork for sustainable growth.

Who Should and Should Not Buy a Business

Sathya closes the conversation with candid advice on what type of person should step into ownership. The right buyer is someone with relevant skills, sufficient capital, and the patience to build trust with stakeholders. Those who expect immediate results, underestimate risk, or lack alignment with the business’s needs may struggle.

Key Takeaways from the Episode

• Buying a business can reduce risk compared to starting from scratch but still requires careful planning
• Skills and fit matter as much as financials when evaluating an acquisition
• Strong relationships with sellers, vendors, employees, and customers smooth the transition
• Due diligence should prioritize working capital, customer concentration, and recurring revenue
• Patience and observation before making changes build long-term credibility

Why This Conversation Matters

With more entrepreneurs exploring Entrepreneurship Through Acquisition (ETA) and SBA financing, Sathya’s story provides a real-world example of transitioning from startup founder to acquisition operator. His experience demonstrates that acquisitions are not only about financial metrics but also about cultural fit, stakeholder relationships, and strategic growth.

For anyone considering buying a business, this episode delivers practical lessons that can help avoid missteps and set up future success.

Listen to the Full Episode

You can stream Episode 51, From Startup to Acquisition: Sathya Ramanathan on Selling, Buying, and Growing a Business, on the Before You Buy or Sell a Business podcast or wherever you listen to podcasts.

For more insights on business acquisitions, deal structures, and ETA strategy, visit Jared W. Johnson’s website.

Before You Buy or Sell a Business Podcast – Hosted by Jared Johnson

What kind of person should actually buy a business, and just as important, who should not? In Episode 50 of the Before You Buy or Sell a Business podcast, host Jared W. Johnson sits down with David Barnett, a former business broker, small business advisor, and author, to explore what separates prepared buyers from those who get in over their heads.

Barnett shares candid insights from his years in finance and brokerage, explaining why the flood of “buy a business with no money down” content online has created a wave of unprepared buyers. He breaks down the common mistakes first time buyers make, why due diligence requires more than reviewing a profit and loss statement, and the mindset every future operator needs before taking on ownership.

Why Not Everyone Should Buy a Small Business

Barnett makes it clear that business ownership is not for everyone. While the idea of acquiring a company may sound appealing, not all buyers have the right skillset, capital, or tolerance for risk.

Too many buyers approach acquisitions thinking the process is easy because of what they have read online. Barnett cautions against this, noting that running a small business demands grit, operational know-how, and the ability to handle uncertainty. Without those qualities, new owners can quickly find themselves in financial and emotional trouble.

For aspiring entrepreneurs, Barnett recommends building real-world management experience first and accumulating enough capital to withstand unexpected shocks. For those who lack these foundations, business ownership may not be the right path, at least not yet.

The Red Flags Buyers Overlook

Throughout the episode, Barnett highlights the financial blind spots that many new buyers miss during due diligence:

• Missing Balance Sheets: Too many buyers stop at the income statement and never review the balance sheet. This can hide liabilities, outdated assets, or deferred expenses.
• CapEx Underestimation: Barnett warns that SDE (Seller’s Discretionary Earnings) and EBITDA do not account for future capital expenditures. Ignoring equipment replacement or deferred maintenance creates massive surprises post-acquisition.
• Operating Capital Needs: Even profitable businesses require cash to run day-to-day. Buyers who fail to budget for working capital often find themselves scrambling immediately after closing.

Barnett explains that understanding a deal means more than looking at revenue and profit. Buyers must account for future investments, cash flow cycles, and hidden risks that are not obvious in the marketing package.

The CapEx Trap and Why Financials Do Not Tell the Whole Story

One of Barnett’s strongest warnings is about the CapEx trap. Many buyers assume that if a business is producing healthy EBITDA or SDE, the company is in good shape. In reality, businesses often need significant equipment upgrades, repairs, or replacements that will eat into those earnings.

This is where inexperienced buyers fall short. Without considering long-term capital needs, they overpay for businesses and underestimate ongoing expenses. Barnett emphasizes the importance of digging deeper: ask when equipment was purchased, how it has been maintained, and what replacement costs will look like in the coming years.

Why Price Is Not the Most Important Factor

Another common misconception is that the deal price is the ultimate decision-maker. Barnett flips this idea on its head. He explains that what truly matters is understanding what you are actually buying.

A “cheap” business might come with deferred maintenance, outdated systems, or shaky customer relationships. On the other hand, a well-priced business with strong fundamentals may be worth the premium. The key is aligning the deal with your own capabilities and risk profile.

Who Should Buy a Business

At the heart of the episode is Barnett’s answer to the question: Who should actually buy a business?

According to him, the right buyer is someone who:

• Has relevant industry or management experience
• Possesses capital reserves beyond just the down payment
• Understands that risk is inherent and there is no such thing as a risk-free acquisition
• Is willing to put in the effort to operate, not just own, a business

Barnett stresses that risk varies from buyer to buyer. A deal that looks safe to one operator may be extremely risky for another. Self-awareness, preparation, and clarity are essential before committing to ownership.

Key Takeaways from the Episode

• Buying or selling a business requires serious due diligence and experience
• First time buyers often underestimate risk and overestimate deal quality
• Financials must be reviewed beyond the P&L with balance sheets, CapEx, and working capital taken into account
• Not all listings are good opportunities and some are outright traps
• The right guidance can prevent costly mistakes and prepare buyers for long-term success

Why This Conversation Matters

With the rise of Entrepreneurship Through Acquisition (ETA) and increasing attention on SBA loans for small business acquisitions, more first time buyers are entering the market than ever before. This episode of Before You Buy or Sell a Business cuts through the noise, offering practical insights from someone who has been on both sides of the transaction.

If you are thinking about buying a business, this episode is an essential listen. Barnett’s advice can save buyers from rushing into the wrong deal and help them build the foundation needed for success as an operator.

Listen to the Full Episode

You can stream Episode 50, Who Should Buy a Business? David Barnett on Picking the Right Deal and Becoming an Operator, on the Before You Buy or Sell a Business podcast or wherever you listen to podcasts.

For more resources on business acquisitions, SBA financing, and ETA strategy, visit Jared W. Johnson’s website.

In the world of small business and acquisitions, numbers matter — but stories inspire action. That’s why storytelling has become such a powerful force in shaping how entrepreneurs, investors, and lenders view opportunities.

When media platforms share real success stories, such as Veterans building businesses with SBA financing, they create confidence in the marketplace. These stories make complex financial processes relatable, showing how ordinary people can achieve extraordinary outcomes. On the other hand, negative or one-sided coverage can discourage buyers and stall deals.

The rise of digital media has amplified this impact. Podcasts, LinkedIn voices, and niche business outlets are now just as influential as traditional news. They give entrepreneurs direct access to knowledge, insights, and inspiration from industry leaders.

Storytelling also plays a key role in educating communities. By highlighting how SBA loans work, or how small business acquisitions fuel local economies, media builds awareness and trust.

The future of business media lies in these authentic, educational stories. By focusing not only on numbers but also on the people behind them, storytelling ensures that entrepreneurship feels attainable for everyone.