Buying a Business

Are you ready to break those corporate chains and own a business?

So you want to own a business.

The market looks great; it is a great time to buy a business or to start a new business. Before you venture off and buy or start a business you need to evaluate yourself. Is this right for you? Will you be able to withstand the stress of being self-reliant? To run your own business you need to have an entrepreneurial spirit.

As you think about controlling your own destiny with a small business, consider the options out there. You could buy a successful existing business, startup a new business or buy a franchise. Each option has its own plus and minuses, so take some time and find the right option for you.

As the baby boomer generation prepares for retirement, opportunities to scoop up a successful business from a retiring owner are possible. What do you enjoy doing? Picking a business that you have a passion for will make it easier for you to be excited to go to work. However don’t shy away from a business that you are not an expert in, why, work with the owner to learn the business. Owning a business, whatever it is, is something to be passionate about!

When looking for a business to buy don’t rush, take the time to understand the market. Find a successful business, something that has been around for 10 plus years. Review the books; make sure its making money. If you decide to buy, consider keeping the current owner on for 3 to 6 months so, they can teach you how to run the business. Don’t rush to make huge changes with the business, learn your business first. Be wary of business that need a turn around, there may be a reason beyond your control to why it needs a turnaround.

Startup a new business, sound fun… and risky. Don’t let the risks keep you from trying; an entrepreneur must accept some risk. Before you start your business, take some time to create a plan and analyze the market. At CBM we use the Business Planning Framework to analyze and plan a new venture. To learn more about CBM’s Business Planning Framework click here. I cannot emphasis enough you must create a plan and you must have a business model. The model is how you plan to make money, how you will sell to your customers. CBM has tools and the know how to help you create the business plan and model.

Another option is to buy a franchise. The great thing about a franchise is that you can buy a business with a successful model. A franchise can be expensive to buy and have never ending royalties to pay, but the great thing is risks have been reduce because you have a plan and model, you know what your profits should be. With a franchise, you will have a support system to help and a team that wants you to be successful.

CBM will continue to blog about starting your new business whether it’s a existing business, startup or franchise. If you are ready to break those corporate chains and get out there and be your own boss. CBM can help your business succeed. I wish you luck.

4 replies
    • Michael James Smith says:

      Hi Sam,

      Thanks for writing. As you analyze your decision to startup or buy, review CBM’s Business Planning Framework, CBM’s Steve Imke’s blogs and my planning blogs. CBM’s information will help you plan your business whether it’s a startup or purchase. If you have two options to compare, use the Business Planning Framework, so you can compare costs and expectations of your plans. I like Professors Ruback and Yudkoff video on Buying a Business; also check out Steve Imke’s blogs on business valuation.

      Now to the crux of your comment, build or buy? That is something only you can decide. Is your startup idea strong, do you have the time and money to build the business from scratch? Are you comfortable with the risks? Most startups fail. If you are comfortable with all you must overcome, go for it. However, if you find a well-established business at a reasonable cost and your startup idea is just good; buy the business then eventually modify towards your goals.

      I hope this helps and good luck.
      Mike

      Reply
  1. Rick Jonie says:

    Great post. I have been surprised in my professional experience to see many business owners who fail to see the importance of business plans and have even read blogs telling people NOT to write them. This is refreshing to say the least.

    Reply
  2. Michael James Smith says:

    Hi Rick,
    I totally agree with you. You must thoroughly plan, even if the plan changes. As you know, things changes once the business gets going but the plan helps guide you and the plan should be a living document, updated as you move forward. CBM has a lot of information for the planners out there.
    Thanks,
    Mike

    Reply

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