The Question that I am asked the most
One of the key responsibilities of a business broker is to answer any number of questions people have in relation to their business transaction. There isn’t a day that goes by when I am not asked something different.
But the question that I am asked the most from both the curious public and perspective buyers is. “You must see a lot of businesses-what do you think is the perfect business to invest in?
After analysing 100’s of different businesses, the most honest answer to this question is that there is no “perfect business”. Every business has some weakness or some degree of risk.
The common factor across the best performing businesses that I appraise and sell is that the owner’s are outstanding business operators. They have good systems in place, have well trained staff, they know what their customer wants and know exactly where they want to take their business. This doesn’t mean that they are trying to grow their business at a frantic pace- bigger doesn’t always mean better. They are simply focused on exceeding their customer’s expectations and making their business the best in the industry. Generally if you have a business that is a leader in its field, often the result will be a very profitable operation.
When buying a business, it is easy to become too focused on the negative aspects and risks associated with that opportunity. While you would be foolish not to consider them and look at the worst case scenario, don’t overlook the part that you as an owner will play in building the business and the benefits that working for yourself can bring.
If you are a potential business buyer looking for your perfect business, there are two factors you need to look at with every business- viability and suitability.
While investing in a viable business is given, buyers should spend more time looking at the suitability of a business to their skills, abilities, family goals and personal circumstances. Put a business plan in place to make the business your looking to invest in a leader in the industry.
If you are looking for the “perfect business”, stop looking now because you won’t find it. Instead work out what your strengths are, the goals you are looking to achieve and find a business that aligns with it. There are many professional business brokers who can help you achieve your business objectives.