Lesson 18: Research
Did you know it takes 10 hours 55 minutes to drive from Atlanta to Chicago? Plus, there could be $14.88 to pay in toll fees. These are some of the many details I researched to prepare for my move to the University of Chicago.
What do you need when you move from Atlanta to Chicago? A coat. Not a coat from Atlanta that is built for winters with temperatures around 35°F. You need a coat from Chicago, where January temperatures dropped below 5°F last year. I keep wondering “Am I ready for this move?” because researching the drive and the weather are only a few of the many details I need to prepare for what is next. Research is essential for being prepared.
A good investor does their research. While in business school, I have two years to find and acquire a trade school in the southeast U.S. with $500,000 - $2,000,000 in owner earnings, which means I need to do my own research on the trade school industry. I want to learn how many businesses are in this industry, what size they are, where they are located, and how they generate consistent cash flow.
This week, I spoke with Robert Gayden, founder and CEO of Gayden Capital, about his journey of researching businesses for acquisition. “The toughest part is that it is unstructured,” Robert explained. Once you accept that it is your responsibility to drive the research, you can invest in the best business that aligns with your interests, expertise and goals.
My research has prepared me to not only invest in the right business but also to lead that business. One skilled trade I have been researching is welding, which uses intense heat to bond metals together for an average annual salary of $52,640. According to WeldingInfo, there are 33 organizations that offer welding training in Georgia, and together these organizations provide 141 programs for welding training across the state. One of these organizations could be a target for acquisition to offer students high quality welding training. Robert reminded me that this research can be unstructured and encouraged me to stay the course because this process will ultimately prepare me to create value as both an investor and a business owner.
My mission is to increase representation of Black leaders at the executive, investor, and board level. Research is necessary to be a successful executive, investor, and board member. While I wonder if I am ready to move to Chicago or if I am ready to acquire a trade school, my research prepares me for both my short term and long term goals.
Research is Lesson 18. Next week, I will share Lesson 19: Accountability
