Before revealing the results, what's your single biggest concern from the choices offered?
For many people, identifying the right business is like hunting at night. And, to a certain extent, it's a good analogy.
There are three critical aspects to be considered to be certain you buy the right business.
First, whatever it is that you do best has to be the single most important driving factor of the revenues and profits of any business you consider purchasing. While it's wonderful to fantasize about owning a certain type of business (i.e. restaurants and bed and breakfast joints are the most common hallucinations), if your skill set does not match what that type of business needs most, your endeavor will fail - guaranteed!
Second, do not confuse experience with skill. Just because you have been in a specific sector does not mean that's where you have to remain. Further, while you may have a level of expertise in that area, that alone isn't skill. It's far more important to understand your greatest skill set, as that talent can be applied to almost any industry.
Finally, do not get overly concerned about entering a new industry. Generally, with any level of common sense, the industry can be easily learned. Plus, it's always fun to learn a new industry (at lease I think so - I actually find that to be the most fascinating aspect to buying businesses). As long as it's not a highly specialized industry that takes years to learn, you're going to be fine.
If you're really stumped, here's what to do:
1. Identify some broad categories of prospective businesses (you may want to first eliminate what you don't want).
2. Contact and visit with at least two sellers in each of the categories you initially identify.
3. After you've met with 10 sellers, your ideas will begin to crystallize. If not, PLEASE let me know and we can review what you've done and learned and can better focus upon what business(es) make sense for you.
This article represents a fraction of what you’ll learn on this topic in the How To Buy A Good Business At A Great Price© series - the most widely used reference resource and strategy guide for buying a business. To learn more click here
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