Quitting life as you know it and looking to buy a business makes the answers to these questions crucial.
- What do I want to do?
- Why do I want to do it?
- Can I afford to do it?
- Will I be happy doing it?
- Why do I want to take on someone else’s “stuff”?
Starting a business is a BIG deal, and building it to become much more than a hobby is even a BIGGER deal. It makes sense to get a kick start, whether as a first-time buyer or as part of the growth strategy for an existing business, by taking on a business that is already in existence, doesn’t it? There is definitely an upside to walking straight into revenue and profit. However, knowing exactly what you’re prepared to stick your neck out for is paramount to buying as wisely and ideally as possible. Consider these:
- Making the decision to be a business owner rests entirely on your shoulders. Given you can’t plan every little thing and you won’t ever feel as secure as you may wish to, and if you don’t believe you can give it a red-hot go by backing yourself in the process, then save yourself the time, effort, energy, money and grief you’re about to invest and park it elsewhere.
- Like the idea of “being my own boss”? For first-time buyers, buying a business may not necessarily address this. Why? Because when running your own business, you are always answerable to someone. Just ask any business owner you know!
- Is starting a business a better option? Remember, start-ups notoriously take 2-3 years to turn a profit. If you don’t already have a nest egg sitting neatly under your mattress or your existing business is rolling in it, then don’t do it. If you want the perception of regular cashflow and paydays, then buying into revenue does make more sense rather than trying to get something untested off the ground.
- Of course, deciding what to buy can be tricky too. Waiting to find the perfect business could have you “shopping” for a very long time. There is no such thing. Regardless of its structure, find a business that you’re almost comfortable with. Work it hard, get it into shape and all will ideally work out when ready to move onto your next.
- If you’ve got issues you have not addressed within an employed environment, they are only going to manifest larger when the stress of buying and running a business kicks in. Do something about them before you go down this path.
If buying a business features as a serious option, congratulations! Hang on to your hat; it’s going to be a bumpy ride! Good luck! Onwards and upwards, Denise Hall