Someone who wants to buy a business needs to consider many things, like what industry they want to be in and what they can realistically afford. What many prospective business buyers miss, however, is a more basic question.

What type of business owner do you want to be?

Why does this question matter? The answer fundamentally changes your approach to the business buying process, as well as narrows the focus of your search to just those businesses that meet with your ultimate goal.

Let’s look at some of the basic categories of business owners:

Category 1: The Franchisee

If you are looking for a turn-key business where everything from operating procedures to marketing plans is already spelled out, a franchise might be for you. Franchises do require that you follow the instruction of the franchise at large, so you will have less control over things like decor and products/services offered, but they do come with the added benefits of brand recognition, established business practices and an existing franchise will already be built out with a fully trained staff. Franchise businesses are good for someone who wants to be a business owner, but is willing to give up some of the decision making in return for having much of the planning work done by someone else.

Category 2: The Serial Entrepreneur

The serial entrepreneur is very similar to someone who likes to flip houses. You look for a business that may not be in the best financial shape, but has potential for growth – and then build it to a pre-determined level before selling and moving on to the next business opportunity. This type of entrepreneur is someone who gets bored or burned out quickly, but likes to work very hard and doesn’t mind a big challenge.

Category 3: The Long-Term/Family Business Owner

If you are looking to get into business ownership because you want to buy your dream business and potentially pass it on to your children, you would be a long-term business owner. You are looking for a business you will own until you retire or pass on the reins, so an established business that is already a fixture of the community might be right for you. This type of business buyer might also look for a business with potential for growth, but they typically look for a less-risky investment.

Do any of these types of business owners resonate with you? Do you see how different the “right” business would be for each of these types of buyers? Have a conversation with an experienced and qualified business broker about your goals for business ownership, and then the two of you can really narrow the field of potential businesses to those that would help you achieve those goals.

Have you always wanted to buy a business but don’t know what type of business would be right for you? Does one of the types of business owners above sound like you? Would you like to know what businesses are currently available that would work for you? Ask us! Leave any questions or comments and we would be happy to help!

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com