The October 3, 2011 Minneapolis Star Tribune had a front-page business section article on how franchises are a viable alternative to a corporate job. For years one of my taglines has been, “I’m the guy who helps corporate execs buy their own business.”
Both franchise opportunities and buying an established (mature, profitable) company are viable options. Often there is a difference in scale. The article stated, “Franchises differ greatly by investment level, ownership role, industry and whether they serve other businesses or consumers. An owner can operate a franchise as a lifestyle business, with time for golf, kids or grandchildren or try to grow aggressively in pursuit of a six-figure income.”
Business buyers tend to not want a lifestyle business. They usually want something at which they can work hard, grow and see the results of their efforts. My clients, and I don’t speak for all buyers, want to walk into a solid six-figure income and they have the investment capital to do a deal that will allow for a six-figure income.
The article was 100% correct in saying there are alternatives to corporate employment. While some may perceive business ownership as riskier than employment, with high under-employment and unemployment, constant downsizing and the trend to replace high salaried people with lower salaried people the risk of being an employee isn’t different. In my opinion, buying a business is the least risky way to get your own business. Buy a mature, profitable company and avoid the risks of a startup.
“It’s ALWAYS a good time to buy a business” Richard Parker