Only about one out of fifteen potential business buyers will ultimately make a purchase? If you are considering purchasing a business, it may be helpful for you to understand the challenges buyers need to overcome in order to buy a business.
There are a number of challenges to overcome when buying a business, especially for first-time buyers:
- Current employment. A buyer who is currently employed has more to risk in purchasing a business if he or she has to leave a job in order to dedicate time to the new business.
- Resistance to change. When a buyer leaves a current job to strike out on his or her own and buy a business, then this is both an investment and a major lifestyle change.
- Financial issues. A new owner has to think about loans, potentially assuming an existing lease, as well as a range of other financial considerations and commitments. Typically, the new owner shoulders all of these diverse financial obligations.
- Risk tolerance. Prospective business owners must be willing to take a significant risk and have a good deal of faith in order to make this transition.
- Family and personal issues. Being a business owner is more than a serious financial commitment; it is also a serious time commitment that may take an owner away from his or her family and normal personal life.
If you are considering making the transition to becoming a business owner, it is important to take the time to carefully weigh these factors and discuss them with family members and those impacted by your decision.
Thinking about the diverse risks and rewards of owning a business is time well spent. A professional business broker or intermediary can also help you assess the overall pros and cons of business ownership as well as a potential transaction.