Let’s talk about buying businesses!
When we’re house hunting, we can punch in a few criteria like price, bedrooms, and amenities, and voila, there’s a list of options right in front of us. But when it comes to buying a business, it’s a whole different ball game.
As a business broker, I hear it all the time: “I don’t know what I want, just something that makes around $250K to $500K in pretax profit.” While I appreciate the simplicity of having a target profit figure, the reality is, buying a business is a bit more nuanced than that.
See, businesses come in all shapes and sizes, each with its own unique set of strengths, weaknesses, and opportunities. Unlike house hunting, where you can narrow down your options based on a few key criteria, finding the right business requires a deeper understanding of your goals, preferences, and the market landscape.
Sure, $250K in pretax profit is a solid benchmark, but what about industry? Location? Growth potential? Management structure? These are all factors that can significantly impact the suitability and success of a business for a prospective buyer.
So, business buyers, I urge you: before picking up the phone and telling me you don’t know what you want, take a moment to reflect on what truly matters to you. What are your long-term goals? What industries are you passionate about? What skills and experience do you bring to the table? Where are your hard no-way’s?
By clarifying your priorities and defining your criteria, you’ll not only streamline the search process but also increase the likelihood of finding a business that aligns with your vision and objectives. And hey, if you need some guidance along the way, that’s what I’m here for!
Ditch the one-size-fits-all approach and embark on a journey of discovery together. Because when it comes to buying a business, there’s no one-size-fits-all solution – but with the right mindset and a bit of guidance, the possibilities are endless.