Why Buy A Business?
Last month I wrote an article called “How to buy a business.” The purpose of the article was to help future business owners or those wanting to buy a business navigate more easily through the difficult process of buying a business and how they could do things better. As I came to the conclusion of the article a new thought occurred to me; how to buy a business is important but what I would argue is a more important question to answer and that is, “Why buy a business?”
Why buy a business?
Your answers will probably include:
- I am sick of working for someone else and want to do it myself and do it my way.
- I’m one of the top performers in my company but it’s not recognized. Instead of therefore making my boss look good and rich, its time I go and do this for myself.
- I’m getting older. I have a bunch of corporate experience and know how to get things done in my industry and within my corporation but I’d really love to own and operate my own business and build something I can sell when I am ready to retire.
- Where I work now goes through ups and downs and I’m never sure how secure my job really is. If I owned and operated my own business that would be one less thing to worry about.
What’s your ‘why?’
Why do you want to buy a business? Why do you want to take on all the headaches, hard work and responsibility that owning and operating your own business demands? Is it to feed your ego? Is it to show you are better than another member of your family? Is it to show someone important to you that you can and will be successful? Is it to fund and build your retirement?
So what’s your why’? If you don’t have a compelling reason why you want to own and operate your own business then be honest with yourself. As I’ve said before, owning and operating your own business comes with many challenges and stresses. It is incredibly rewarding but it’s also not for everyone. Obviously you are taking risks with both your time and money; two very precious commodities.
If you don’t really understand your ‘why’ then I would put your business buying on hold until its clear to you. The clarity knowing your ‘why’ will give you the drive and purpose you need once you own and now operate your own business. That is, knowing your ‘why’ gives you a reference point so if things are not working out as you planned, you can look at your ‘why’ and decide “perhaps it’s time I go and do something different” or better yet, “I knew the risks and what I wanted to achieve when I bought my own business. Let’s dig deep and keep going as I have so much I still want to do.”
One of my conclusions is that the business buyer really doesn’t know their ‘why’ as they get frightened by the process of buying a business or unsure what steps to follow.
So before you start the journey to buy and acquire your business spend some time to know your why. Business ownership is incredibly rewarding if it’s done right. ‘Right’ means the buyer finding the business that fits their budget, skill set and lifestyle. Each person is unique and brings their own skills and dynamics or why. If you know your why, your chances of success are simply so much greater and help prevent the buyer acquiring the wrong business for the wrong reason.
For more immediate help with buying a business you are welcome to send an email to Andrew Rogerson or give me a call on 916 570-2674.