Is it possible to go from knowing nothing about buying businesses to owning one within a year?
Just 12 months ago, Steph had zero experience in business acquisition.
Fast forward to today, she’s already built a successful digital agency and has bought her first business at nearly half the seller’s asking price.
Even more impressive, instead of taking a year or more to see a return, she’s on track to completely pay off the investment within the next 3-4 months.
Today, you’ll hear Steph breaking down exactly how she found the seller, what happened during negotiations, and the steps she took to secure her first acquisition.
You’ll also hear about her bigger plans to keep acquiring businesses as a way to accelerate her progress to making $30k/mo and retiring her husband.
Steph’s story proves you don’t need decades of experience, you just need the right mentor and a proven process to follow.
The Power of Setting Clear Intentions
At the start of the year, Steph and her friends had a tradition of creating a bingo board filled with predictions and goals. Despite being completely new to business, she boldly wrote down: “I’m going to buy an agency.” Her friends were bewildered – they didn’t even know she’d started learning about websites seven months earlier.
“I put on the bingo board, I said I’m going to buy an agency and they’re like, what do you even mean? I had done all of the digital investors courses, I’d started Champions and I was so reluctant to tell anyone what I was doing because I just felt like such an imposter.”
This wasn’t just wishful thinking. Steph had heard on a podcast about another couple who had purchased an agency to grow their own business faster. The idea stuck with her – why spend months finding new clients when you could acquire them instantly? She added it to her vision board and kept manifesting this goal, even though she lacked the confidence and skills to approach a business owner about an acquisition.
When Opportunity Meets Preparation
The universe works in mysterious ways. Steph’s very first paid client had come from an aged digital agency in Harvey Bay. The agency had helped her transition the client smoothly, and she rebuilt their website – her first real project. At the time, she thought how amazing it would be to buy that agency, but dismissed it as impossible given her lack of experience.
Fast forward a few months, and Steph needed to contact the old agency owner about removing two-factor authentication from an old citation. What started as a simple technical request turned into a life-changing phone call. The owner casually mentioned they were looking to sell and asked if she knew anyone interested.
“He said, ‘Oh, you know, we’re actually looking at selling. Do you know anyone who’d be interested in buying?’ And I said, ‘Actually, I would love to.’ We had coffee a week later.”
Understanding the Seller’s Motivation
The sellers were an older couple who had built their digital agency over 15 years, starting in Harvey Bay before spending time in Melbourne. They were at a stage in life where they wanted to travel and enjoy their retirement. Without a buyer, their plan was simple but wasteful – they were going to contact all 28 clients and tell them to find new hosting elsewhere.
This scenario represents a massive opportunity in today’s market. Many baby boomer business owners are reaching retirement age with no succession plan. They’ve built valuable client relationships over decades but see no option except to shut down. For savvy buyers like Steph, these situations create win-win acquisitions at bargain prices.
The Art of the Negotiation
Despite never having bought a business before, Steph approached the negotiation strategically with guidance from her mentor, Matt Raad. The seller initially hoped to get around $20,000 for the agency, including some one-off website builds. But Steph focused on what really mattered – the recurring revenue of just over $11,000 annually.
“We were on Zoom and he and his wife just looked at each other when I said, ‘Oh, I’m willing to offer a one times multiple on the recurring income, which is just over $11,000.’ And they just looked at each other and said, ‘Sure.'”
But the real genius was in how she structured the payment. Rather than paying the full amount upfront, Steph negotiated a deal that protected both parties. She paid $2,000 to start due diligence, then half the remaining amount after meeting all the clients. The final payments were made as each client successfully transferred over – and every single one did.
The Hidden Value in Personal Introductions
What made this acquisition truly special was the seller’s commitment to ensuring a smooth transition. He personally drove Steph around Harvey Bay, introducing her face-to-face to most of the 28 clients. These weren’t just business relationships – he was hugging his clients goodbye after 15 years of service.
This personal touch proved invaluable. Not only did every client transfer successfully, but many immediately expressed interest in website renovations and additional services. One well-established construction business even asked Steph to help them prepare their business for sale rather than simply closing their doors.
Immediate Return on Investment
The $11,000 investment started paying dividends immediately. With $1,000 per month in recurring revenue, the agency would pay for itself in less than a year. But the real value came from unexpected bonuses. The seller introduced Steph to three new potential clients, including one quoting $2,000 for citation work and another seeking ongoing SEO services.
“If I get even just the client from yesterday’s meeting, it will have paid for the entire business. So yeah, it’s very exciting.”
As Matt Raad pointed out, this was like playing Monopoly in real life. For zero risk and $11,000, Steph acquired a reliable income stream that would generate returns month after month. At a one-times multiple when agencies typically sell for three times annual revenue, she secured an exceptional deal.
Building a Network for Future Acquisitions
Perhaps the most valuable outcome wasn’t just the 28 clients or the monthly revenue. The seller, grateful for Steph taking over his life’s work, offered to connect her with other agency owners in similar situations. Many of his peers were also looking to wind down their agencies, creating a pipeline of future acquisition opportunities.
This network effect is often overlooked in business acquisitions. When you treat sellers fairly and create win-win outcomes, they become advocates for your continued success. The seller even visited Steph’s home for afternoon tea with her children, showing how business relationships can transcend mere transactions.
Key Lessons from Steph’s First Acquisition
1. Start With Clear Intentions
Steph’s success began with writing down her goal and keeping it visible on her vision board. Setting clear intentions combined with taking action creates opportunities that seem like coincidences but are really the result of focused awareness.
2. Look for Motivated Sellers
The best deals come from sellers who need to exit for personal reasons – retirement, health issues, or lifestyle changes. These sellers often value a smooth transition over maximising price, especially in small regional markets.
3. Focus on Recurring Revenue
While the seller included one-off projects in his initial price, Steph wisely negotiated based only on guaranteed recurring income. This conservative approach protected her investment while leaving upside potential from additional work.
4. Structure Win-Win Payment Terms
By tying payments to successful client transfers, Steph minimised her risk while giving the seller confidence in her commitment. This creative structuring made the deal possible despite her limited capital and experience.
5. Value Relationships Over Transactions
The seller’s gratitude and ongoing support proved more valuable than any discount on price. By treating the acquisition as the beginning of a relationship rather than the end of a transaction, Steph gained a mentor, advocate, and source of future opportunities.
The Untapped Opportunity in Small Agency Acquisitions
As Matt Raad emphasised, small digital agencies represent a hidden market opportunity. These businesses are too small for traditional brokers but perfect for individual buyers looking to accelerate their growth. Across Australia and particularly in America, thousands of these micro-agencies exist with owners ready to retire.
The beauty of this strategy is its scalability. Acquiring just five to ten small agencies over several years could build a substantial recurring revenue base. Each acquisition not only adds immediate cash flow but also increases the overall value of your agency for eventual sale.
For beginners like Steph, starting with one small acquisition provides invaluable learning experience with minimal downside. The worst-case scenario is breaking even while gaining 28 client relationships and real-world acquisition experience. The best case, as Steph discovered, is immediate profitability and a pipeline of future opportunities.
Your Next Steps to Buy a Digital Agency
Steph’s journey from teacher to successful agency owner and acquirer in just one year proves that anyone can start a profitable online business with the right mindset and guidance. Her story embodies the principles of Robert Kiyosaki’s “Rich Dad Poor Dad” – acquiring assets that generate passive income rather than trading time for money.
If you’re inspired by Steph’s story and want to explore buying digital agencies or online businesses, start by setting clear intentions like she did. Research your local market for established agencies with aging owners. Most importantly, don’t let lack of experience hold you back – Steph didn’t even know what a profit and loss statement was when she started.
The opportunity to buy small digital agencies at bargain prices won’t last forever. As more people discover this strategy, competition will increase and multiples will rise. But right now, motivated sellers like Steph’s are waiting for someone to take over their life’s work. Could your name be on next year’s bingo board as someone who bought their first digital agency?
