HOW DO I KNOW WHAT BUSINESS IS RIGHT FOR ME?
Having the desire to become an Entrepreneur is the beginning steps down an exciting path of business ownership. But most people do not have enough knowledge to know where to go from there. As you drive along Main Street in your home town, you will notice the many different businesses there, and how vast your options may be.
Now that you have made the decision to go into business for yourself, you need to start narrowing the field of options. Manufacturing, Service, Retail or Internet are some of the categories these companies fall into. But what strengths do YOU bring to the table? A successful business acquisition is not only a result of identifying a company that has been run well and profitably for many years and now you will take over its ownership as if nothing would change. NO! You need to think about your strengths and weaknesses and how they come to play with each potential business opportunity. Can you ADD something to the existing business? Will it fit your lifestyle? What is your comfort level for down payment, working capital and how much money do you really need to earn to live? As Business Intermediaries, we work to help you answer these questions and narrow the field of opportunity.
Often I speak to a potential Buyer who is looking for a business where the owner is retiring or may be ill and does not have family members to take over the operations. They may be skeptical if the owner has only owned the business for a few years or is too young. Yes, it is important to have an understanding of WHY the current owner is planning to sell. But assuming that the retiree offers a better opportunity couldn’t be further from the truth. Each business opportunity comes with its own unique situation. There are plusses and minuses to each that have to be carefully weighed. Would you really want to buy a business where the owner has not reinvested in their company in years, and yet still wants to be paid for every paperclip and past relationship they ever had? Would you not find value in a company that a young entrepreneur found, built up and fine tuned and now wishes to move on to a new challenge or project? There are many opportunities where a Company has been run well and a retirement situation is a huge opportunity, but there are many other good opportunities beyond this scenario. It is important to keep your eyes wide open as well as your options. Evaluate each Business on its own benefits and weaknesses and see where you can compliment or enhance the current operation.
Once you have narrowed the field of opportunity and have identified a Business for acquisition, you will need to employ the skills of professionals to assist you. You will need an Attorney to consult and eventually negotiate an Asset Purchase Agreement. You may choose to work with a professional Accountant to review the financials of the Company.
The road to Entrepreneurism is an exciting path, but can also be challenging. By taking the right steps early and throughout your journey, it can lead to the lifestyle and success that you desire.