Ordinary people choose to become business buyers for a variety of reasons. Some of the most common acquisitions of small businesses are performed by those who have recently lost a job or are fed up with the corporate world and are interested in becoming their own boss.
Purchasing a business allows one to evade the work of building a business from the ground up, which tends to take a long time with low returns. Acquiring a previously established business is attractive to those seeking a way out of their current career, since a lot of the more difficult entrepreneurial work has already been completed. The buyer takes on the role of creating continued success by running the business in a manner that he or she deems most appropriate.
However, it is important for the question “Are you ready to be your own boss?” to be asked before one becomes too heavily involved in a business buying process that they may choose to ultimately walk away from. Anyone looking to purchase a small business should ask themselves the following questions.
Can I Afford It?
One cannot purchase a business without a substantial amount of capital to finance the acquisition. The business buyer will typically need to have a large sum of money saved up, as well as an additional avenue for financing the business. A steady stream of income is recommended, since it will improve the chances of receiving a loan. There are also many other forms of financing that can be found here.
Do I Truly Know What I’m Getting Into?
The idea of having the opportunity to be your own boss may almost resemble a vacation in some people’s minds—ordering others around while the owner reaps all of the financial benefits. However, this is not the case for the majority of business owners. In fact, many business owners devote more time and energy to owning a business than they would in a typical nine-to-five job, due to the heavy amount of responsibility that rests upon them. If a person is looking to buy a business is doing so solely based on the desire for a four day work week, then they will be in for a big disappointment. However, if the buyer is seeking out the reward of being his or her own boss, then they should continue their search.
Do What You Love.
It is important for buyers to perform a bit of soul searching before buying a business. The buyer should ponder the sorts of things that he or she enjoys spending time doing, and then purchase a business within that specific industry. Knowledge and passion for a certain industry will produce a better outcome than simply buying a business because it sounds like a simple or fun job. While it may appear exciting to purchase the latest tech phenomenon, without a background in computer programming, how can the supervisor connect the dots?
Seeking out a business within one’s own industry also causes the buyer to be more attractive to potential sellers. Proving expertise will cause a seller to place their trust in the buyer, which helps contribute to a completed sale.
Do you think that you are truly ready to buy a business and be your own boss? As with any first-time buyer, you will need someone to help you navigate your way through the process. George & Company is one of the top business brokerage firms in New England and we would be happy to assist you in becoming your own boss. Contact us to learn more.