As is the case with many guests of the DealQuest Podcast, this week’s guest, Richard Parker, never envisioned himself as a dealmaker. Parker's journey into the world of dealmaking, however, began early at the age of 12 when he launched his first business endeavor, delivering newspapers and selling subscriptions in his local community. This early venture instilled in him the fundamentals of sales and marketing, laying the groundwork for his future endeavors.

Throughout his career, Parker has been actively involved in numerous transactions, assuming roles as both buyer and seller. Each deal has provided invaluable insights, shaping his approach to deal making and bolstering his expertise in the field. Today, Parker is committed to assisting others in realizing their entrepreneurial aspirations. Through his programs and consultations, he shares his wealth of knowledge and experience, empowering individuals to achieve their dreams of business ownership – and he’s here to share this the keys of knowledge base with us today.

5 GOLDEN RULES OF DEALMAKING
In his years as a dealmaker, Richard has created his own formula for a set of guiding principles that he adheres to when assessing potential business opportunities. These principles have played a pivotal role in his success, and as such, he encourages others to develop their own criteria for evaluating deals. Parker's five golden rules are outlined as follows:

1. Sales and Marketing Driven: Richard prioritizes businesses that are driven by robust sales and marketing strategies, recognizing that revenue generation is fundamental to business success.
2. High Margins: He seeks out businesses with high profit margins, understanding that such margins facilitate increased profitability and long-term sustainability, providing resilience against challenges and fostering opportunities for strategic growth.
3. Element of Exclusivity: Richard looks for businesses offering an element of exclusivity in their products or services, whether through unique offerings or territorial advantages. This exclusivity confers a competitive edge and enhances the business's overall value.
4. Demand in Place: He gives preference to businesses with established demand in the market, recognizing the costliness and difficulty of creating demand from scratch. Investing in businesses with proven market demand mitigates risk and enhances potential returns.
5. Not Competing on Price: Richard steers clear of businesses that compete solely on price, recognizing the inherent pitfalls of such a strategy in the long term. Instead, he focuses on businesses that offer value and differentiation in the marketplace.
   
   

THE IMPORTANCE OF SPECIFICITY IN DEAL CRITERIA
When crafting deal criteria, Richard states that it is imperative to be precise and deliberate about the factors that hold the most significance. Richard believes that generic criteria can result in vague and unproductive assessments of potential deals, and he advises dealmakers to look deeply and pinpoint the specific quality and attributes crucial for success in a business venture.

For instance, rather than simply expressing a general preference for enjoying one’s work, it hold more weight to identify the underlying motivation behind the desire. Perhaps it stems from a passion for working with children, which can then be translated into a specific criterion pertaining to businesses specializing in children’s products or services.

By adopting a specific and intentional approach to defining deal criteria, dealmakers can effectively evaluate potential opportunities and align them with their unique strengths and interests.


HOW TO BUY A GOOD BUSINESS AT A GREAT PRICE
Are you looking into making serious business purchases? Need a good place to start on how to go about it? Luckily enough, Richard offers a course for just this. The How To Buy a Good Business at a Great Price course featured on Richard’s website is a course designed to help individuals who are thinking about buying a business or franchise. he course provides a comprehensive 548-page guide, along with ancillary resources and interactive tools. It also includes a proprietary valuation software program developed using data from successful and unsuccessful business transactions.

Be sure to check out the How to Buy a Good Business at a Great Price course: https://richardparker.com/course/

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For my full discussion with Richard Parker, and more on this topic and topics not featured on this blog post:
Listen to the Full DealQuest Podcast Episode Here

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FOR MORE ON RICHARD PARKER:
https://www.linkedin.com/in/richparker1/
https://richardparker.com
https://diomo/com

Corey Kupfer is an expert strategist, negotiator, and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author, and professional speaker. He is deeply passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.
 
Get deal-ready with the DealQuest Podcast with Corey Kupfer, where like-minded entrepreneurs and business leaders converge, share insights and challenges, and success stories. Equip yourself with the tools, resources, and support necessary to navigate the complex yet rewarding world of dealmaking. Dive into the world of deal-driven growth today!