Steel City Growth | Dream Big, Buy Smart - Dan Kelly - Steel City Growth

Dream Big, Buy Smart - Dan Kelly - Steel City Growth - Episode #15

July 31, 2025 / 44:00/E15

What does it take to buy a business? Dan Kelly, Managing Partner at Two Step Ventures, joins Bill to provide further insights into what exactly it takes to buy a business. Dan shares his extensive experience and insights into buying a business. With over 20 years of working for companies like Stryker, ADP, and Amazon Web Services, Dan discusses his transition from starting small businesses to moving into business acquisition. He explores the current market, strategies for finding and evaluating businesses, and the importance of networking within the M&A community in Pittsburgh. Dan also emphasizes the value of advisors and brokers in the buying process, the challenges he faced, and the surprising ease of finding willing helpers. Additionally, he shares personal anecdotes about resilience, building a supportive team, and advice on maintaining health and energy management as an entrepreneur. The episode is rich with practical advice for aspiring business buyers and underlines the cultural shifts in business ownership and opportunities presented by the retiring baby boomer generation.

Takeaways:

Prepare for Turnover: Be ready for key employees to move on. Plan for their departure from the start and support their ambitions, as it fosters loyalty and future collaboration.
Engage with a Broker: A broker can help identify the right business opportunities, detaching the emotional component, and connecting you with necessary legal and financial advisors.
Invest in Your People: Focus on developing your team. Help them achieve their goals, even if that means they outgrow your business. Continued support will create long-term professional relationships.
Health is Crucial: Maintain your health and energy through proper diet, sleep, and exercise. Physical well-being positively impacts business effectiveness.
Be Patient and Plan: Take time to develop a strategy and not rush from one meeting to another. It helps in making better, more thoughtful decisions.
Consider Diverse Financing Options: Explore various funding methods such as SBA loans, seller financing, and earnouts, which can make buying a business more feasible.

Quote of the Show:

“ It's scarier to me to be stagnant than it would be for me to go fail and then fail again, and fail again, and fail again.” - Dan Kelly

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