Before you spend hours analyzing a business, run it through these 5 questions: 1. Why is the owner selling? Retirement is very different from declining sales, burnout, legal issues, or a business that depends entirely on the owner. 2. Does the business generate enough cash to support the deal? The cash flow needs to support the buyer, the business, and whatever financing structure is used. 3. How dependent is the business on the owner? If the owner controls every customer relationship, sale, decision, and operation, you may be buying yourself a job. 4. Can you clearly understand how customers are acquired? You should be able to explain where customers come from and why they keep coming back. 5. Can the acquisition be structured around the business itself? Instead of immediately asking: “Where do I find the money to buy this business?” Ask: “How can the cash flow, seller, assets, customers, or deal structure help finance the acquisition?” That shift in thinking is where creative acquisitions begin. You do not need to analyze every business. You need to get good at eliminating the wrong ones quickly.