While working with business owners and individuals with the process of buying and selling businesses, I consistently come across a common element that I believe would be surprising to most that are “looking from the outside in.” Money is always a determinant factor in the process, but so very often it is the other factors that create the motivation that steers the process. As a small business owner or one that recently started a business one wonders if the thoughts, trepidations, or concerns that you have are shared by others. It is common to wonder if others struggle with decisions such as you. What are some of the thoughts others have regarding these important decisions.
Currently I am working with business owners that are selling their businesses and it may be somewhat surprising that money is not the primary reason they have decided to sell their business. But make no mistake all business owners want the maximum amount they can attain for their business but the reasons for selling are varied and different. I am also working with several individuals looking to buy businesses and they as well generally are looking for some sort of change. Again they are looking for value in the business they are seeking to buy, but the reasons they are looking to get into something different are also varied and diverse.
Many people out there, and readers of business articles such as this are contemplating change. So many of tomorrows business buyers are employees that are working for someone else today. They are seeking change. Many of the business owners looking to sell their business are seeking change. Most all starting a business, buying a business, selling a business are seeking change. When talking with seller of businesses and potential buyers of businesses one learns the “why” is varied, and comprises similar thought processes I experienced as one that both started a business, bought several businesses and sold my own business as well.
Perspective very often if the difference maker in what drives this business decision. The excitement and energy that comes along with doing something new where the roads ahead are full of unknowns and optimism can certainly provide different perspective than the business owner that has experienced the challenges and sees the roads behind him. The reasoning behind the decision to buy start or sell a business may look very similar but it really is the perspective that provides the different “take” on that reasoning.
“I want to Buy a Business, I want to Start a Business because…”
1. MONEY – want to make lots
2. PASSION – I love making widgets
3. ACCOMPLISHMENT – It just feels good
4. OBLIGATION – It was my families’ business
5. EXCITEMENT- I love working 24/7
6. CONTROL – I control my own destiny
7. OPPORTUNITY – I’m young-limitless
8. CHANGE- I want to do something different
“I want to sell my Business because…”
1. MONEY – Not making enough, money is less important
2. PASSION – I used to love making widgets
3. ACCOMPLISHMENT – The feeling of accomplishment is gone
4. OBLIGATION – My family is no longer around
5. EXCITEMENT – after working 24/7 I am now Burned out
6. CONTROL – Insurance Companies,employees,IRS,State,control my destiny
7. OPPORTUNITY – I feel old – exceeded my limit
8. CHANGE – I want to do something different
While the list could go on and on, contrary to common belief – it’s not always JUST about the money.