The most common comments I hear from business buyers are "What is a good business to buy? I am open to any business that can make me money. They also bring up this question whenever they find any company that looks interesting. Is this a good industry to be in? What they are not getting is that every industry is a great industry for the few doing well and a terrible industry for the rest of the world. I would say that 50% of all business owners just barely get by, 30% do average, and 20% of the business owners make a profit that they are proud of. It has nothing to do with what industry it is but everything to do with the management of the company.
So if it is all about the management, how do you know if you are going to be good top management material? Well there are several things. Lets review some of those traits.
1. Who is your teacher? If you have a successful teacher there is a better than average chance that you will be success. That does not mean that if your father was very successful that you will also be successful. You have to be willing to learn from father and he has to be patient and willing to teach his children. One out of 15 children of the supper rich learn so well that they are far more successful then dad. Most of the remaining children live off the family money and play and usually die broke. Some learn just enough to just get by and keep dads business going long enough for the grandchildren to destroy it. Some find a passion in some other area and succeed in their chosen field even if it is not about making money. The problem is with those children who grew up with no dreams or have no purpose in life, except to play, and therefore they become alcoholics and die broke.
2. Do you get a solid accounting education and today you must have a solid Internet marketing background? People from Corporate America may not of gotten one or both of these. People who run small retail businesses usually do not understand either. That is why they do not keep good financial records do not have a clue as to why they are making or loosing money. Business today is all about getting and keeping customers. The Internet has pushed aside all prior marketing methods. If you do not know how to market, you will fail, regardless of how successful the business was when you took it over. Some say, you can hire consultants, but a large percentage of them cannot even apply what they teach for their own businesses use. Smart management goes back to school and learns as much as they can about all the new technologies related to being successful in business.
3. The most overlook trait is the one I put the most emphasis on. Alone it will not guarantee success, but without it, I can almost guarantee failure. This trait is doing something you love very passionately.
My father, who was very successful in everything he touched, felt that if you worked hard at anything, you would become interested in it. He loved overcoming challenges so any business was exciting to him. Success makes happiness was his opinion, regardless of the type of business. I do not agree.
When I was doing activities that I felt were fun and exciting, and were exactly on my purpose line. It was the happiest times of my life and most financially rewarding. In those times, if you asked me what I did for a living, I would of told you, "I play monopoly for a living" When things got tough, I had to get very serious and buckle down and work. This resulted in me failing miserably. I do not like to work; I like to play, at my work. When I was doing things I loved, I woke up early and worked late. Put energy into identifying your life passions. Next, when you clearly know what they are, then figure out how to make a living playing at those actions. Feel free to contact me if you would like help doing this. One of my passions is helping others be successful at finding their passions.
About The Author: Willard Michlin, CPA offers business buyers Due Diligence Services (Second Opinion, Offer Assistance, Final Due Diligence) when they are thinking of making an offer on a business or in the process of investigating a business purchase. Serving all of California. He has written numerous articles on the due diligence process and can be reached direct at 805-428-2063 for more information and an appointment.
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|Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence Services - California
Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 805-428-2063.
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New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.
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California Business Escrow, Inc. is a full service independent escrow company serving all of California and has expertise in a wide range of escrows. Our team prides itself on providing an exceptional escrow experience. For more info phone Diane Boudreau-Tschetter at 888-383-3331 or 209-838-1100.
|Shalonda Chappel-Pilgram: Escrow & Bulk Sale Services - Southern California
Escrow services to brokers/agents, sellers, & buyers. Established 43 years. Extraordinary service. Experienced with handling difficult transactions. One stop for all your escrow needs: Bulk sales, lien searches, UCC searches, liquor license transfers, publishing & recording services. 951-808-3972.
|Joe Sandbank, Esq: Legal Services For Buyers, Sellers, Brokers - Throughout California
I have provided legal counsel to business buyers, sellers and brokers for over 17 years. With prior experience as a business broker and SBA loan officer, Joe brings both a practical and legal approach to all aspects of the business acquisition process. Please phone 916-672-8018 for more info.
|Ryan Clark, Business Broker, Southern California
The Veld Group provides a refreshing approach to Business Brokerage, Mergers & Acquisitions and Business Consulting and Valuations. From Your Street to Wall Street, we cater to Main Street Businesses as well as more complex Strategic Firms and Start-Ups. Phone Ryan at 310-652-8353.
|Mike Hurrell, Broker: Coin & Card Laundry Specialist Brokerage
Providencia Properties Inc in association with Golden State Laundry Systems is a full service Coin Laundry Real Estate Broker. At GSLS you will receive personalized attention from our professional staff of coin laundry experts. To sell or buy a Southern CA laundromat call Mike at 310-223-2240 X209.
|Joe Ranieri, Business Broker, Orange & LA County Areas
Having owned retail/restaurant businesses for over 20 years, my interest turned to listing and selling businesses rather than owning them. I specialize tend to specialize in Orange County high volume restaurants, fast food independents and chains, bars and liquor stores. Call 714-292-5448.
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