It's when people tell me I can't or shouldn't. It makes me want to prove them wrong. But in this case, I'm a little cautious because the person saying so is quite smart and very experienced in this area.
I'm referring to my Plan B. I spoke to a person I know who's a business broker. He's very successful at what he does. What he told me once I showed him my plans was basically to throw the idea away. His main point was that I shouldn't be wasting time trying to build a successful business, I should just buy one that's already established and is successful.
He went on to point out the why's and the what's. But I looked at him and said "Well, if everyone thought like you, no one would start a business at all."
The thing is, I walked away from out meeting and I can't escape the fact that everything he said was true. Everything he said was right. He's not in the position he's in due to doing things the wrong way and learning from them. He's where he is because he always thinks things through, and makes the best choice in the aim of making money.
Another friend I spoke to who is also successful though not a rich bastard like this business broker told me "Why do you want to make all this money? Why all the greed and stuff?" I had to explain to him that is wasn't about greed. It was about goals.
I told him "My goals are simple. I want to earn enough to pay all my bills, live a little and provide enough income into my family so that my wife and I can build our new home, can have the children we plan on having and look after them in the old fashioned way we both agree to look after them, by her staying home and making sure the house is a home. And we also want to be able to go on holidays anywhere and not worry about returning to a business where all the customers have fled because no one was there to service their needs."
He changed his opinion of my greed into that of just wanting to be comfortable and getting what my wife and I want. The ability to have it all set up for us so we don't have to struggle.
I'm fully aware that plans can change. But it's good to have some sort of plan and a bit of flexibility for those bumps along the way. It might go all wrong. Though I'd rather it go wrong now and I have a few years to sort ourselves out again rather than do it later in life when there's more at stake.
The fly in the ointment however, was my meeting with the business broker. It's not that bad. He just crushed a dream. Though if I do listen to him, my goal is still achievable. By looking at established businesses, there wasn't much on offer. The choices were basically cafes and pizza shops. To me, they're not really what I like to consider a successful business. Sure, people eat food all the time. But how many local pizzeria shops do you see where the owner walks to him BMW? It's another one of businesses much like my current one. A dead end.
The only real choice of a good business was looking at a franchise, but not your regular Subway or something. I was thinking more like a tyre shop, or brakes and suspension. There's a brand in Australia that's pretty popular, and a branch of their shops is selling near me for a reasonable price.
The great part is, it's a well known brand that's been established for over 20 years. It's mechanical, which is my background. The business can operate while I'm not there because I'm not on the tools or at the register. It's a franchise, so while it's no guarantee, it has a higher than likely chance of working out. I have a nation wide advertising campaign done for me. Stationary, etc.
The business broker was happy, then suggested to get rich I must purchase a few branches. But he usually thinks big, so the number was an unrealistic 10-15 branches. LOL. Sure, I'll just invest a few million dollars and see what happens. He might be able to, but I sure as hell can't.
So, there's now a Plan C. But it may well be Plan B because all the hard work is done thanks to me purchasing a franchise.
Looking at it a few days after speaking to the broker, it makes sense. So perhaps the music school might be a Plan C. Or perhaps an additional business.
2 comments:
Some questions I would ask myself.
If the business is so successfull why are they selling it?
Business brokers getting rich off of selling businesses, some are liars to some extent. I knew a preacher who was a Business broker, who owned a few businesses that were losing money and he sold them to others claiming that they were getting a business that would take care of all their bills. Wrong. He told me about how he dressed up businesses to make them look profitable.
resturants are the riskiest business to go into and 70% of them close within the first 2 years of opperation.
These are my thoughts and opinions, take them as you wish , Just remember I wasnt quiet when I could have been.
I whole heartedly appreciate every bit of advice I get. So, thank you so much for your thoughts.
I did actually ask the broker if the business is so successful, then why in your right mind would you sell it? He said that the ones to look out for are where the owner is retiring or perhaps moving overseas permanently, or even just changing industries like I am.
True, he gets rich off buying broken businesses for cheap, fixing them up and selling them for 10 times the price in 12-24 months. Truth is, this is how he makes money, so for him, buying an established business works.
I have had my accountant look at each business I've thought about, so he can see the actual numbers and tell me if it's good or bad as far as it making money or costing money. I trust him.
I also trust this business broker because he's not trying to sell me a business on his books, but offering me general advice based on what worked for him. I personally won't be doing direct business with him due to the fact that while he's knowledgeable, we're a bit like water and oil. Just won't mix well. However, his opinion is valued.
I spoke to Val today, and will write a new entry for today's 4 hour lunch meeting. Some interesting developments.
Cheers
pip
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