On my Business owners and Entrepreneurs podcast – Transition Guy we discuss all subjects to do with business and business behaviour. Many times I speak to entrepreneurs who are stuck in a rut. They are working 24/7 and burning out. The idea was to run their own business but instead of buying a business they have bought a job.
What makes people start their own businesses?
We are in a tough economy – we are seeing the financial effects of the global pandemic as well as the war in Europe. We have a cost of living crisis and energy prices are unaffordable. Inflation is at a 40 year high. The effect of this on businesses is that many are sadly closing their doors or scaling back. The inevitable effect of that is job losses. For some that will push them into becoming self employed. People start their own businesses for many reasons: Independence, passion, financial rewards and flexibility.
Are you simply relaxing your income?
When people set up or buy their own businesses they approach it by needing to replace their income. Mistakes are often made because many of us don’t know how to run a business. Many will have been extremely successful in their corporate environment but owning your own business creates a whole set of new rules. It is imperative to do your due diligence and ask yourself the right questions. A business plan for yourself and the bank is one thing but there are other questions you need to ask yourself. When you are buying a ready made business you need to work out if the business you are buying relies on the people that founded it and are selling it. Otherwise you could find yourself buying jobs instead of a business.
Have you done your due diligence?
If you buy a business and you haven’t done your due diligence then you might find yourself spending the best part of three to four years untangling the business before you can sit back and simply own the business. Make sure you speak to people who have experience in buying businesses. They can advise you on the pitfalls you may encounter. Do your research, there are plenty of articles out there to help you. There are also a lot of courses you can take which will help you to shift your mindset. Those courses can tell you what to look for when buying a business.
Is your freedom actually your prison?
Don’t just rush into it because if you do rush into it, you could end up making the biggest mistake of your life. You don’t want to substitute one bad boss for another. People buy a business thinking it will give them freedom but actually it ends up being a bigger prison than their previous corporate career because they didn’t ask the right questions. Get it right before you buy the business, and then you’ll have happy business.
I am finalising my course on buying a business so stay connected with me for that and if you want to discuss buying a business get in touch
Remember, failing to learn is learning to fail.
