June 19, 2010
Taking the decision to buy a business can be influenced by a huge number of factors. In the case of this blog, let’s assume that we are talking about the purchase of a small business or possibly a franchise operation.
In my experience, buying a business can be a process that has been influenced by either a change in financial circumstances, the economy or ones feelings towards their current employers or career. A change has got to happen. Of course, there are those that simply want to invest in a venture and get a return on their investment but in the main, most individuals looking for a change in career or direction in life, want to be the masters of their own destiny.
With the global recession taking a real stranglehold in the latter part of this first decade of the third millennia, running a business has never been tougher yet the market for buying a selling businesses has never been more buoyant. Strange you may ask? Well, not really when you consider the most common factors associated with these scenarios. The years 2008 – 2009 saw a huge number of redundancies in the developed world. Large corporations, banks and privately owned businesses simply couldn’t survive anymore in the tough economic times. Redundancies usually come with a financial severance package and with these severances, the individuals involved had a decision to make. Do I save this capital or invest it in my own future and buy my own business?
Losing your job is never fun… if you do so in your 20’s or 30’s, it is unlikely to have any great effect on your employment prospects for the future. No doubt, another job is probably waiting around the corner. However, someone in their 40’s, 50’s or even 60’s will take a completely different view. Is this the end of the line? For some, it really could be the last time they ever work in their chosen profession. It’s a sad and real scenario that has been faced by thousands, if not millions of people who lost their jobs over the past two years. So where next?
For these folks, self-employment may be the only solution. Starting a business from scratch is tough. It costs a lot of money, time, experience and great planning. Why do all of this ground work when an established, profitable business solves all of these problems? For someone with a bank account full of redundancy pay, the prospect of buying a business or entering into a franchise arrangement can be an attractive one. Suddenly the option of being your own boss offers a greater amount of flexibility in your work and life balance, your daily commute can be reduced significantly and you suddenly realize that a bad situation has in actual fact presented a really great opportunity. So if you are in this situation yourself, your outlook may not be as bleak as your had first thought. It’s easy to get wrapped up in the doom and gloom that has been drip fed to us by the media that the economy is in crisis. However, behind all of this political spin are some really attractive, stable and profitable businesses for sale that are waiting to be snapped up and given a fresh injection of energy, enthusiasm and direction by someone like yourself. Entrepreneurial spirit like this drives economies out of recessions so in actual fact, you and your new business venture could be the decisive factor in bringing the economy out of the doldrums. If you are sat looking at a rather large severance payoff, buying your own business could be the best decision you ever made.
The same can be said for those who are simply stuck in a rut. One of the most common reasons for the purchase of a business is simply to make a significant change. Many people simply don’t like change and stick with careers for many years, even decades doing the same thing, day in, day out. Buying an established business offers a way out – an opportunity to really get out of that groove and give yourself a fresh challenge and a new zest for life. Buying a new business can really help achieve this. If you are fed up with your role or feel undervalued at work, seriously consider where you want to be in the coming years. Sticking it out and keeping with the safe option is the easy decision to make but will it make you happy? Sometimes the hardest decisions can be the ones that will bring the greater reward. Seriously challenge yourself and see if you can come to a clear decision on where you feel you want to be or where you feel you should be. If you are in this position, buying an established business for sale and franchise could offer you a new direction that you never thought possible.
If you are thinking of buying a business then congratulations. You are one step closer to the next stage on your career and your life. However, this is just the beginning of that journey and it pays to ensure that you get smart. If you read some of my other blogs, I’ll help you to understand the key areas to looks out for when buying a business and the realistic processes involved. There are a huge number of opportunities for buyers to purchase businesses at reasonable prices. After all, it really is a buyers market right now. But chose wisely. There are many great businesses on the marketplace but for every great business, there are dozens that you should avoid. Check out my other blogs for tips, advice and insight into making the right decision.
So are you ready to get out there and look for your new business venture. I thought so. Well done and good luck with your search.
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