The November 19, 2020 Wall Street Journal had a front-page article titled, “New Entrepreneurs Emerge From Wreck of Covid Economy.” Some of the highlights from the article are:
- A lot of people are turning their skills into a business and it’s their job “in” the business. Skills like personal training, hair styling, freelance chefs, and more.
- New business licenses are up 32% over the first nine months of the year compared to 2019.
- Between 10% and 11.2% of workers are self-employed.
- People are realizing the new normal will be much different than the old normal.
But what about those people who don’t have a “job” skill? These are the people who know how to manage people, processes, money, and enthusiasm. For them, it’s buying a mature, profitable, and fairly priced business.
Why? The most common answers audiences have given me on this include:
- To take control of their life, career, and finances.
- To benefit themselves not shareholders from their smart and hard work.
- Having fun!
- Letting their creativity shine.
- Flexibility – if they want to go to their kid’s game or recital they can.
But it’s more than the above. There’s an inner satisfaction to not be beholding to a corporation, a boss, or a boss’ boss. Yes, you have to take care of customers and employees, which is important, and that brings us back to the reasons – to do it your way. Whether it’s a job or your own business happiness and having fun is crucial. It’s like the character Michael Burnham on Star Trek Discovery who states how much she loves what she does and doesn’t want to anything else.
We’re going to see more and more of this. And, for owners whose companies have been hurt by Covid, these buyers aren’t your answer because they want a non-distressed company, but other firms looking to grow by acquisition are your exit.
“Reality is that which, when you stop believing in it, doesn’t go away.” Phillip K. Dick