Most businesses are built so that they can eventually dole out rewards to their hard-working owners on exit. Whether the intention is to sell the company, offer it as an inheritance or wean it into a self-supporting profit-making machine, the ultimate goal for many business owners is to be free from day to day operations and get sufficient return on their investment of time, effort and money. That is why exit strategy is as important as building the business itself.
Very few decisions have as much impact on your life, as well as of those around you, as the decision to buy a business. This is one of the biggest decisions you will make, other than the decision to get married or have kids. Yet many people jump into this without carefully examining what it takes to run a small business. They get blindsided by the myths about owning a small business and end up paying a huge price, both in terms of money and stress, for a long time. With that in mind, we have compiled 7 best practices to follow and understand before buying a business.
Many of the business owners who expand from a single unit to multi-unit operations fail and even end in a worse situation than before. It’s human nature to think of a simple math – if you are making $100K from one unit; you should be able to make $200K from two, right? They may go even further thinking that the outcome should be more than $200K when you include all the synergy you can derive from multiple units.
Even though there is some truth in this argument the reality is operating a multi-unit business is hard work. You need to think long and hard before expanding and consider the pros and cons of multi-unit operations before making a decision. Below I have tried to highlight some of the key points to consider in terms of the benefits and pitfalls.
Many people would love going in the business with a partner for variety of reasons. At the same time you will find equal number of others who hate the idea of working with a partner and losing independence. What is it about the partnership that brings different reactions from different sets of people? In this article we will highlight the pros and cons of being in a partnership.