In Business Acquisition and Sales the “pool” of most future business buyers are currently employed by someone else right now. The same applies for future Entrepreneurs. But what about those currently unemployed?
The job market seems to have an abundance of very qualified people chasing a very limited number of jobs. The number of those unemployed in the US seems like a fairly difficult number to track, but with unemployment in the 9-10% range-depending how you measure or guesstimate it seems that you have well over 10,000,000 (ten million) people unemployed here in the United States. Is owning your own business by either starting a business or buying a business a viable option for those unemployed.
Is Buying A Business The Future For You?
Is buying a business or starting a new business the right career path to all of those seeking to “re-find” a career or just get off the ranks of the unemployed. Buying a business or starting a business is not for everyone, but it can be a very viable option for many. There are the both mindset obstacles to overcome, and finacial battles to be won before one can make the transition from employee or currently unemployed to one that owns and operates their own business.
I personally think overcoming the mindset of “can I do this?” may be the bigger of the 2 obstacles. To over use a saying- “Thinking outside the box”. Personally I feel there seems to be so many that are “trapped” inside the box, that thinking outside the box in this situation can be a life changing situation. I believe that many of those so many qualified individuals that are currently unemployed will consider “going out on their own” and enter the world of entrepreneur by either starting or buying a business.
For example- I am working with a business owner of a small computer service store, assisting him in selling his business. He is very anxious to sell his store as he has plans to move out of state to be near a friend and join him in a business venture there. He recently reduced his price to $65k due to his increased interest in moving on.
He runs a viable one man business, works about 40 hour weeks, and his business is up over 2009 numbers. His “Owner benefit” is approximately $70,000. So are you buying a job that pays you $70,000 a year? Are you buying a career? Are you buying the ability to control your career? It can be a nice situation for the right person.
Sending off resumes, searching the job board, going on job interviews can almost turn into a routine that may seem to have no end.- Is it a comfort zone, is it doing everything you can do to find your next career. I suggest spending a few minutes looking on a website such as mine Florida Businesses For Sale , or maybe some other larger business for sale websites like www.bizbuysell.com or globalbx.com, or possibly look on Flippa.com to see what sort of businesses for sale are out there, or possibly a website, or e commerce site may be available, what are the cost, and is it even a possibility based on ones current situation. I think one should at least allow the concept of buying a business or starting a business to come into the equation. Certainly owning or running a business is not for everyone, but is it for you?
5 Reasons not to consider starting your own business or buying a business. – Or maybe you should…
- Money is needed to buy a business or start a business– but do you have any realistic feel of how much it would take.
- Ive never bought a business before or started a business before – talk to most all businesses owners that have owned their business for 10+ years and they will also say the same thing.
- The economy is doing so bad now, its just the wrong time to try a new venture.- There are many business owners that have and are delaying the sale of their business. A “pent up” demand is being create. The workings of supply and demand show that as supply increase prices reduce.And of course also the choices are more abundant.
- Some people are just more prepared to buy a business or start a business. This is true, but are you one of those “some people”. When you talk to long time business owners you learn that all the uncertainty that you may have while making this major decision is completely normal.
- My Job Searching is really going well- I think that is great, my decision to “be my own boss” 20 years ago was about controlling my own destiny, perhaps there are different ways to do that.
My profession involves a lot of time talking with business owner regarding their short and long term business plans. Many current business owners feel they need to get their financials/ and Sales back up to a level commensurate to the value they seek from the sale of their business. This is creating somewhat of a pent up supply I also speak to many potential business buyers and understand that everyone’s situation is so different. Available money, family, location, other personal matters all go into the evaluation. Part of my long term planning of my business broker activities does assume that many of todays unemployed will be tomorrows business buyers.
Great article on a topic that is probably on a lot of minds right now. I have a small contribution:
“If you chase two rabbits, you will lose them both.” –Native American proverb
A job seeker considering entrepreneurship may be tempted to start or buy a business while continuing his/her job search. It seems like a good idea; just run the business during the day and fill out a job application or two each night before bed. In reality, though, the psychological effect can be crippling to both pursuits because you will not be able to give 100% of your ability to either.
You will inevitably confront this scenario: A new client is about to sign up with your company. However, you just completed a great job interview and you expect to be offered the job. Do you put off the new client for a few days, hoping to hear back about the job, and risk losing the client? Do you take the client and risk having to drop them a few days later? Make the wrong choice, and you may lose them both.
Stick to one rabbit at a time, and pursue it with all your energy. 100% of your talent and ability is better than 75% any day.
Josh Martin, Attorney
Northeast Florida (Amelia Island)
Hey Josh- Thanks for reading and thanks for commenting- Very appropiate proverb. I agree with your comments and suggest the one rabbit you chase is entrepreneurship. Scott