- Business and Employment
Should you buy a business? Retire early? Semi-Retire? Go back to being an employee?
Is finding the right business for sale your answer?
Lose your job? Thought you retired? Can't afford to retire?
Many people who have left the corporate world, either voluntary or not, find themselves in the position of either 1) looking for another job or 2) figuring out how to retire on whatever financial resources they have.
We all hear about the difficulties of trying to start over, find a job probably making less money, the hassles and uncertainty of the job search and every month you are searching you are burning through your financial resources.
The 3rd Way - Buy a Small Business
We often sell businesses to people who thought their only choice was to retire or try to find another job. Buying an existing successful business, when done right, can enhance your retirement prospects and eliminate your need for a job search. An added bonus is that, unlike getting another job, when you buy a business and you are ready to retire you can sell your business. If you get a job and retire they don't let you sell our job.
There is an excellent case that can be made that if you retire early and buy a business you can grow, you will be far better off financially as opposed just trying to save a little more of your salary for your 401k or IRA during your last few years as an employee.
If you think about your everyday activity you realize there are many small businesses you encounter on a day-to-day basis. If you're like me you've often had an experience with a small business and thought to yourself "wow, I could run this business a lot better than this".
Every day businesses sell and new owners breathe new energy and life into the business and build wealth and income for themselves and their families.
There are all kinds of businesses you can buy. From part-time businesses to 7-day a week grinds.
This Hub is not about buying real estate as an investment which is usually consider a passive investment (but believe me being a landlord isn't passive).
Here are 8 critical questions to ask yourself before considering buying a business:
- How far am I willing to drive to my business? Are you willing to drive a long way for the right business? Move?
- What is the maximum amount of hours/days/weeks I'm willing to work? This is tricky, spend some time on this question. Sometimes time commitment related to specific time slots is more difficult than the number of hours.
- What are my financial resources available to use to buy a business? Ready cash? IRA/401k)? Relatives?
- Is my credit score decent? Will you qualify for an SBA Loan?
- Am I willing to spend the time and energy necessary to get through the business buying process? Buying a good business will probably take between 4 months and a year.
- Am I comfortable making ALL the decisions?
- Do I have skills that can be applied to small business? Is managing a business something I will do well? Can you honestly assess your own skills?
- Do I have the attitude and commitment needed in a successful small business?
If you are happy and comfortable with the answers to these questions then buying a small business might be a good option for you.