CFD 601 – This Is Your Defining Moment with Chad Peterson
Chad Peterson is an expert business broker and the founder of Peterson Acquisitions, an award-winning M&A firm. Chad’s firm handles transactions in the $1 million to $25 million range, with some deals exceeding $25 million.
He works with companies all over the United States and has completed international deals as well. Peterson Acquisitions was recently named by one publication as the #1 ranked business broker in the United States. What sets Chad Peterson apart from all other business brokers is his aggressive style, work ethic and tenacity that are rooted in his humble beginnings.
Chad Peterson is a self-made entrepreneur that has been in the trenches. He has started, built and sold 6 of his own businesses. Chad wrote the book “From Blue to White: A Working Man’s Guide to Self-Employment”. Best-selling author Scott Alexander of “Rhinoceros Success” wrote the foreword. He also wrote the book “Swinging Doors: A Guide to Selling Your Business” and is the host of the podcast:Business Brokers: Buying, Selling & Growing Businesses
- Who is Chad Peterson?
If you study people who are driven you will always find a point in time where it all began. For Chad, he grew up in a tumultuous house with a difficult upbringing and early on his defining moment was realizing that he had to do things on his own. In his words “if it was meant to be it was up to me.” He worked hard as a kid, earned his own money and quickly enough people started to recognize that and praise him for his effort.
As a natural entrepreneur, Chad had difficulty in school and found himself in the work program. He eventually became a commercial pilot but that career was cut short by 9/11 and he quickly went back to his entrepreneurial roots. He built several companies and sold them over the next few years until the second inflection point of his life.
In 2008, Chad had built a company that had 120 employees and was making $7 to $10 million a year. The trouble was the company was in the subprime mortgage industry and was completely destroyed by the crisis. In only a few short months, Chad went from a millionaire to broke. Instead of being defeated, Chad picked himself up and built a different company selling home services and things carried on. Eventually people started asking him how to build and sell businesses, which is how Chad ended up where he is now and a top business broker in the United States.
- The Impact of Mindset
Chad feels that his mindset of his life being up to him is responsible for at least 85% of his success. When you’re hungry in your soul, you will make things happen. Success is survival, and for Chad if he doesn’t feel like he’s progressing he feels like he’s dying.
- Why $700 to $1000 a day?
Home services between $700 and $1000 are still affordable for most Americans, even during a recession. By going for volume instead of a high price tag he knew that more people would take him up on his offer. During hard economic times, volume will beat out margin and a steady flow of income is important to keeping things going.
- Taking Risk When There Is Fear In The Marketplace
There are people who act now that will make a huge amount of money during this crisis. It may seem logical to wait when you’re afraid or uncertain, but that’s what kills an economy. We are in a collapse scenario and fear is only going to add to the speed of things falling apart.
As an example, Chad recently started a new business that is going to be heavily impacted by the coronavirus, and has decided to pivot his strategy by creating another business that’s more catered to the current situation. Just because times are tough, that doesn’t mean there aren’t opportunities out there. Now is the time to test your entrepreneurial nerves.
- Is it a good time to buy or sell a business?
It’s not the right time to buy every business, but it is the right time to buy some businesses. There are a number of businesses that are going to thrive in this kind of chaotic environment, you just have to find one that’s recession proof.
- Why do people miss their zone of genius?
Fear is often the reason that people don’t discover what they are truly good at. Sit back and think about your life and what you’ve done and you might find the answer for what you should be doing. There should be some fear involved mixed in with passion and excitement. Where there is no passion, there is no profit. When you’re doing well is the time to sell the business, don’t wait until you lose the passion for what you’re doing and for revenues to drop before looking to sell your business.
Reference: Swinging Doors: A Guide to Selling Your Business, Chad Peterson
- Chad’s Takeaway
Right now is the time to go inside yourself and figure out where you are at. Right now is a defining moment for people and it’s the time to decide where you can assert yourself in this market. Now is the time to take an inventory and reach out to people. Most failures exist because the person hasn’t done what it takes to get behind their idea. Be ready to take massive action once you decide what the answer is.
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