Today’s tip of the day: What’s the first thing I look at when evaluating a business to buy? Well for me its graphs.
I look at traffic graphs. I look at net income, customer service metrics, sales graphs, those kinds of metrics to see if they are declining, flat or growing. For me, declining graphs in most of these areas indicate an unhealthy business.
There has to be something rather exceptional in the listing description or the kind of business being performed for me to continue looking at it once I’ve perceived it as unhealthy at the first glance.
So hopefully I can save you a little bit of time when you see those kinds of graphs. Unless there’s some other compelling reason to stick around and dig further into the listing, just move on to the next one.