Why Buying a Business Could Be Your Next Best Step in 2021
Covid 19 changed the trajectory of so many people’s lives; But that doesn’t mean the change has to go in a negative direction. The challenges of 2020 forced quality employees to lose their jobs resulting in more time to think, re-evaluate what they truly want out of their lives, and ultimately gave them the opportunity to pivot and create their own destiny.
As a business broker, my most common and enthusiastic buyer is someone with solid career experience, commonly aged 40’s & 50’s, has some financial security, and brings a unique skill set which would be advantageous to any business requiring a fresh set of eyes. These are 4 reasons why buying a business could be your next best step in 2021:
- The timing is right for you. You are young and enthusiastic enough to embark on a second career, yet qualified enough to have learned from your past experiences.
- You need stable cash flow. Startups are risky and can take years before a new owner can deduct any type of salary. Buying an established business with steady cash flow provides an instant salary for a new buyer.
- There is a high inventory of stable businesses currently for sale. Baby boomers are tired. If they were already thinking of retiring, 2020 pushed them to do so. These businesses are not coming to market as distressed businesses. Instead they are being valued for their great reputations which have persevered through the challenges of a recession before. Simply put, the owners are tired and do not want to do it anymore. They realize what their business needs is a new outlook, new vision, a fresh perspective.
- You get to control your own destiny. Why be the employee of a company when you could be the employer of your own? Last year, successful long-term employees learned there was less security working for a larger corporation. Be the primary decision maker of your future employment. Why not wake up every day to grow a business you truly believe in?
If this resonates with your New Year intentions for 2021, take these next 4 steps.
- Talk to a broker. A broker will guide you through the process, ask you the right questions to help you hone in on the best business for you. They will also have direct access to all businesses currently listed for sale.
- Get educated. Listen to business podcasts (ex. The Deal Board). Read business books. Ask your broker for executive summaries of industries which interest you. Ask questions.
- Contact your financial advisor. You’ll need the expertise of your financial advisor to help you decide what down payment and business you can currently afford.
- Ask yourself, “What am I passionate about?” Most new buyers do not have a clear idea of which industry they would like to dive in to. This is completely normal. Ask yourself these questions: What excites you? What is something that doesn’t feel like a chore to do? What articles do you enjoy reading? What makes you smile at the end of a long day?
Give yourself the gift of silence this year. Block out the noise and any negative memories from 2020. Be still and discover what your passions are. And once you have some minor clarity take the first steps and grow!
Contributed by:
Tatiana Demoraes, Business Broker
Transworld Business Advisors - Rocky Mountain
(720) 664 - 4474
Tatiana DeMoraes is a Business Broker with Transworld Business Advisors - Rocky Mountain. She has a decade of work experience in commercial real estate and management, representing the largest landlord in New York City. During this time she became involved with local entrepreneurs and coached women to achieve their business goals with a purpose driven strategy.
Tatiana has spent extensive time abroad living in Europe, Australia, and South America. In 2016 she explored her passion for travel and embarked on a six month solo trip around the world before reaching her final destination of Denver. She’s a self-proclaimed foodie who loves to cook and entertain. She makes it a point to ski in the winter as much as possible and loves the diversity of activities the Rocky Mountains have to offer.
Tatiana is a Member of the Denver Metro Chamber of Commerce, the International Business Brokers Association, and the Colorado Association of Business Intermediaries.
Your business is our business. The leading business and commercial real estate brokerage.