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Please Don’t Buy a Business (if you aren’t comfortable in a dark room)

When he called, he got right to the point: “I want to buy a business.” I heard a sense of urgency in his voice. He went on to say “you have businesses to buy, you’re a business broker, right?”

我每周至少会接到一次电话, and after talking with scores (maybe hundreds) of would-be business buyers, I’ve realized I need a psychology degree to go along with my advanced business degree. 多半, the caller doesn’t want help finding a business to buy, they need help deciding what they want to do with the rest of their life.

我在找一个好机会

Since the recent disruption in the US economy has caused layoffs and uncertainty, 许多有事业心的商人 & women have considered leaving corporate life to buy a business. The motivations I hear range from “I’m too old to find a job that’ll replace my income” to “I want to get ahead of the job cuts coming.” But there is one thing I always hear, “I’m looking for a good opportunity.”

Though I know the answer, I then ask “how do you define a good opportunity?” I say I know the answer because I’ve had this conversation scores of times, and the answer is always the same: “I’m looking for a retiring business owner who doesn’t have a succession plan, who’s willing to bring someone alongside to transition the business over 2 or 3 years.”

你想要多少收入?

I don’t ask “how much do you want to invest?” because I seldom get honest answers. I get at it this way: “how much income are you looking to make once you have the business?” and this is where the rubber begins to meet the road.

When people look to buy a business say they want “a good opportunity” they are generally saying they want a business that is underpriced and has turnaround potential with an owner willing to self-finance. But here’s what always, and I mean always, happens. Once the potential buyer has evaluated a business that has one or more of these “turnaround” characteristics, the potential buyer will come back and tell me all the problems in the business. This is what I call the opportunity paradox: you can define what you want, 但是当你找到它的时候, 你不会想要的.

你在暗室里舒服吗?

I believe about 98% off those who call me saying they are “looking for a good opportunity” really just want another job, 或者更好的工作. They are not emotionally suited for the uncertainty of business ownership. They have no appetite for the risks of taking something from point A to Point B, 更不用说Q点了, V, 或Z.

在分数(数百?)这样的对话, I’ve come to believe the one characteristic that best defines an entrepreneur is the ability to be comfortable in a dark room, to have a sense that “I can find the light.“想想看, 当你在黑暗的房间里, 你不知道墙在哪里, or if there’s a light switch anywhere to be found, 或者电灯开关是否能正常工作, or if there’s a functioning light bulb once you flip the switch. That’s the essence of buying a business. There is seldom clarity about how the business will perform, 和真理是, corporate life does nothing to prepare you for a life of uncertainty. So before you think about buying a business, put yourself in that dark room (metaphorically and literally) and think about your emotional comfort level. After all, there are plenty of “good opportunities,” but will you know it when you see it?

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田纳西河谷集团

吉姆Cumbee established 田纳西河谷集团 to help business owners fulfill their dreams for life after business ownership. It’s a mission that his 30+ year career history had prepared him well for—in addition to being an attorney, transition mediator and business broker, 吉姆是一个买家, 卖方, 和企业家. His broad range of experience gives him unique insight into how business buyers and 卖方s can achieve their goals.

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