Acquiring a business is a life-changing event that will change not only your financial situation but also your lifestyle. A business takes a large investment of time, sweat, and tears. For many, matching your business acquisition to your interests or hobbies helps to decrease the chance of losing interest or becoming easily discouraged.
There is no such thing as a perfect business. Humans are complex individuals, and although not impossible, it is improbable that one business would be able to encompass all of your interests and desires into a single operation. By reflecting upon what is truly important to you, you may be able to narrow your search, save time and find positive aspects of one business that would make it a better fit or workable situation than another. Remember to carefully examine and dissect each choice.
- What is your financial situation? Do you have the following at your disposal:
a. Retirement fund (ex. a pension, IRA, or 401K)
b. Available assets for collateral (ex. Real Estate Equity)
c. Business Partners, Friends, or Relatives that can make financial contributions
d. Future incoming funds (estate settlements)
e. Other income sources that will continue to come in
f. Reserve Cash funds available for start-up costs, unexpected expenses, living expenses
g. Cash available for down payment
- Does your work history and resume reveal your business knowledge, work experience, passions & skills? If not, make a list of these items for advisors to use to help you find your best business fit.
- What do you truly enjoy doing the most? (ex. Skills, talents, interests, hobbies) Your background may turn up a surprising and workable business opportunity.
- What will your role be in the business? Is your personality behind the scenes or hands-on?
- What are your current financial needs? Do you need a secure month-to-month income, or can you invest the money back into the business for 6-12 months?
- Do you intend to have a few employees, many employees, or do you prefer to work alone?
- How important is it for your business to have potential to expand or grow?
- What is more important the lifestyle and prestige of the business or the bottom line profit regardless of the nature of the work?
- Do you need more freedom to come and go as you please or steady, fixed hours?
- Do you want a family business? How many dedicated and skilled friends/family are you able to employ?
- How do you feel about traveling?
- Do you like to learn new skills & undergo schooling/training?
- Do you mind working evenings and weekends?
- Do you work best in the morning or evening? How will your business fit in?
- Are you more inclined towards blue collar or white collar work?
How did you do on the quiz? Were you able to confidently answer most or all of the questions? If so then you might be ready for the next step which is identifying the right business for you give us a call to discuss your results.