Buzz Harris
Every now and then, events happen in our lives that cause people to reflect on their purpose in life. For example, a birth in a family will often challenge new parents to plan for the future in a way they might not have considered before.
On the other hand, a death in the family will cause one to reflect on a person’s accomplishments and challenges.
Fortunately, I have not had any new additions to my immediate family, nor has anyone close to me passed away. However, with a pending significant high school reunion in the near future, it has caused me to reflect on my professional life.
The question that immediately came to mind was “How is it that I am able to make a living helping people buy and sell businesses?” The short answer is because there is a need.
The longer answer explains why the need even exists.
From a buyers’ perspective, many have felt the need to do something entrepreneurial.
The opportunity to be the master of your own destiny and your investments can be very appealing. For others, it might not even be by choice. Heck, even Lee Iacocca was fired from his job at Ford Motor Company.
The question for these individuals then becomes “Do I start a business from scratch or do I buy an existing business?” Fortunately for business brokers, many of these individuals are aware of national statistics that say less than half of all new startups make it through the first three years and 23% won’t even make it past their first anniversary.
There can be many reasons for this. Insufficient operating capital, bad management, strong competition, weak customer base, poor business concept, or just plain bad luck can doom a business.
Even when everything comes together as planned, it can be months or even years before the business becomes profitable.
By purchasing an existing business, a buyer can dramatically minimize the risks associated with starting a brand-new business. Successful existing businesses have a proven track record of profits that generally continue long after a business has been sold.
Once deciding to buy an existing business, the next step is what business should they buy? A professional business broker can help. They can show the buyer a variety of businesses where the owner is legitimately interested in selling and then help them though the purchasing process.
A professional broker should be able to explain the seller’s motivations for selling and be able to provide pertinent information regarding the business’ financial performance, staffing, facilities, equipment, inventory, product lines, customer base, etc.
Helping an individual fulfill their goal of buying a business generates a great deal of personal satisfaction for me.
Buzz Harris is a Licensed Business Broker with The Liberty Group of Nevada. Contact him at BHarris@TheLibertyGroupofNevada.com.
