Owning the best kind of business for you and owning a business are two different things. Owning the wrong kind of business can make you unhappy. You need to invest the time and effort to determine the best kind of business for your needs and personality. How do buyers go about finding the right kind of business? Author Richard Parker explores this topic in his Forbes article titled, “What is the Right Type of Business for You to Buy?”
Parker has spoken with an estimated 100,000 buyers over his career. He has concluded that it is critical that you don’t “learn on your own time.”
Parker’s Key Piece of Advice
Here is Parker’s key piece of advice. “While there are many factors to be considered, the answer is simple: whatever it is you do best has to be the single most important driving factor of the revenues and profits of any business you consider purchasing.” Parker also believes that expertise is more important than experience. Prospective buyers need to perform an honest self-assessment to identify their single greatest business skill and area of expertise. You do not want to pretend something you are not.
Parker’s Key Point
Parker notes, “Small business owners generally wear many hats: this is usually why their businesses remain small. Remember that every big business was once a small business.” Whoever is in charge of the business will ultimately determine how the business will evolve, or not evolve. Selecting the right business for you and your skill sets is pivotal for the long-term success of your business.
This all adds up to making the process of due diligence absolutely essential. Before you buy a business, make sure you understand every aspect of that business. Make sure that the business is a good fit for you. Parker believes that if you don’t love your business, it will have trouble growing. It takes a tremendous amount of time and effort to own and grow a business. If you don’t enjoy owning and operating your business, success will be more difficult to achieve.
Finding the right business for you is a complicated process. Do you really want a solid business with great potential for growth that you would hate owning? EBIT Associates can help you find the best business fit for your needs, personality, and goals.