One big reason is to find a business that's successful as well as enjoyable. A business that can stand on its own two feet whether I'm there or not. A business like this is hard to find.
The reason behind this that my wife and I want to have a business that operates while we can take the time to raise our yet to be born children. Or if we decide not to have kids because we both also agree that the world is over populated enough, just to have a good income that comes in without us doing much at all. Yeah, we're lazy. :)
The other thing is, with my business, I've hit a limit. I can no longer grow. I didn't see this coming, otherwise I would have made the choice to stop what I was doing quite a while ago. But hindsight is a wonderful thing... ain't it?
Another reason for looking at businesses for sale is to see how they operate. Looking at buying a business makes you really sit down and see how they operate. What I've found recently is that the business can be turning over $2M a year, yet they can run into a loss of $20,000. Or you find a business that brings in $140,000 per year, but makes a profit of $40,000.
However, I'm also looking at businesses that are bringing in larger sums of money, as their potential is bigger. But that is the surprise. I assumed that the more a business brings in, the more profit ends up on the table. The $2M dollar business proved that wrong. However, there's a lot wrong with the business and fixing up the loose ends may yield a damned good result. On the other had you have the smaller earning businesses, but looking at them, they're not doing too much better than me. I'd sacrifice the $10,000 per year less than I get now from my business than spend my life savings on buying one that's only making $10K more. I think I could make my business make a further $10K just by diversifying. But I don't want to, because that's yet another area of "expertise" I'll have to service.
I am truly surprised at the way a lot of businesses are operating, big or small. And I'm, in a way, assured that my business is actually okay.
That's all fine and dandy, but my income is still limited. I'm not earning what I want and what I'd like. And what that is, is a limit which I've hit with my business in its current guise. I can't make any improvements to that unless I change it drastically. And by that I mean restructure. So I might as well put in the hard work of restructuring into a business that makes millions over one that makes tens of thousands. The effort is the same, the return is ten fold.
Once I acquire a business that can stand on its own two feet, I can then change my lifestyle so I myself don't have to be at work in order for the business to work for me.
I'm still looking. I know they're out there.
2 comments:
You have more experience than me about that, I always thought if a business is doing well and running it self no one is gonna sell one of those
Usually, the ones that are running well that are for sale are for sale for a legitimate reason. Like if the owner has had ill health, or is retiring, or moving interstate or overseas.
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