Buying a Business

Entrepreneurship and business ownership offer unprecedented opportunities to experienced and talented individuals. Corporate job positions do not offer job security anymore. Corporations go through massive layoffs and suppress middle manager positions. They replace experienced managers with younger, more aggressive and less expensive employees. Small businesses are more flexible. They adapt better to business environment changes, resist economic downturns and thrive in economic booms. In addition, new technologies have made it easier and less expensive to manage small businesses.

The process of buying a business can be very frustrating especially for first time business buyers. Ninety per cent of business buyers never buy a business even after spending a lot of time and money looking for the perfect opportunity. Most business buyers not only lack skills in selecting viable business opportunities, but also do not spend the necessary time to understand their own strengths and preferences in business. A new business owner can only become successful if he/she is passionate by his/her activities managing the new business.

Few buyers apply a rigorous process when trying to purchase an existing business. Motivated buyers do their homework before starting the process. They do extensive research and learn about how to buy a profitable business. While very useful, learning through research is very time consuming and remains theoretical. Most research about buying businesses has been conducted in the United States. A lot of the findings do not directly apply to the Canadian marketplace.

This lack of practical experience in buying a business costs a lot of time and money to potential business buyers. Some spend tremendous time and money looking for the perfect business opportunity. Looking for a business purchase is a full-time job. Sometimes the time spent looking for a business could be worth more than the price of the business itself, especially for skilled buyers who could earn a high wage in a regular job.