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Open The Kimono
Getting cozy with other business owners so you can level up.
Simon Trask
April 14, 2025
Thinking about buying a business?
It can be a thrilling time.
The search, the hunt, the negotiation, the possibilities, the hopes and dreams, the potential that a prospective business has…
Buying a business means that you and the seller both need to get really cozy with each other. This can be uncomfortable, to say the least.
I heard Tim Ferris use the phrase “Open the Kimono” and thought that phrased it just perfectly. You have to get financially naked.
You will both be making yourselves vulnerable by sharing your finances, and the seller might have to take a big risk in letting a competitor behind the curtain of the business during the due diligence process.
Be cautious and empathetic as you take this trail. Keep in mind that you’re both taking a risk.
Like Vertical Integration, you will face challenges when mashing your businesses together, except with Horizontal Integration there might be some more dynamics to navigate.
If you buy a direct competitor, many times the employees already dislike each other because they have a tribal mentality. (This may even be from your own doing!)
If you’re not careful about the integration, it might feel to your employees as though you have invited the enemy to move into camp. Culture can be difficult to manage and is an art form in itself.
Buying a business can take you to the moon, just make sure you don’t lose a few parts exiting the atmosphere!
 | Onward and upward, (I’m a small business owner, advisor, and advocate – learn more here) |