When it comes to buying a business in an industry you don't know, it can be a daunting task. But with the right approach, you can make the process much safer and easier. In this article, we'll explore the concept of industry peer groups and how they can help you take risk off the table when buying a business.
What Are Industry Peer Groups?
Industry peer groups are groups of business owners in the same industry who meet regularly to discuss best practices, challenges, and successes. By joining a peer group, you can learn from the experiences of other business owners and gain valuable insight into the industry.
For example, if you're looking to buy a business in the IT services industry, you can join a peer group of IT services business owners. You can ask questions, learn from their experiences, and even find potential partners and vendors who can help you with your business. An example of this is IT Nation.
Benefits of Joining an Industry Peer Group
There are several benefits to joining an industry peer group:
- Learn from the experiences of other business owners. You can ask questions and get advice from people who have been in the industry for a long time.
- Find potential deals. By letting other members of the group know that you're looking for a deal, you may be able to find one through word of mouth.
- Find talented partners and vendors. You can find people who can help you with your business after you acquire it.
- Learn what to avoid. You can learn from the mistakes of other business owners and avoid making the same ones yourself.
How to Join an Industry Peer Group
Joining an industry peer group can take some time and effort. You'll need to travel to the meetings, pay for hotel and other expenses, and get to know the other members of the group. It can take up to a year to get fully embedded in the group and for them to trust you.
You can also find online peer groups that you can join for free. These can be a great way to get started and get to know the industry.
Conclusion
Industry peer groups can be a great way to learn about an industry and take risk off the table when buying a business. By joining a peer group, you can learn from the experiences of other business owners, find potential deals, find talented partners and vendors, and learn what to avoid. It may take some time and effort to join a peer group, but the rewards can be well worth it.