So You Want to Buy A Small Business

TEN MISTAKES TO AVOID For the past 28 years, I have characterized myself as a “self-employed, small businessman.” One thing I know for certain is that I have made numerous mistakes. I have erred far more often than I have succeeded. Perhaps you can learn from some of my mistakes. Here are ten things you should consider (prioritize for yourself) … • Do not choose a greedy partner. Find a partner who has the success of the business as their priority. • Do not start too early in life. Learn the basics of the industry while working for someone else. Experiences are expensive; let someone else train you and learn from them. • Do not think that your business will last forever. Most small businesses are a means to an end. You must always be aware of the value of your business in relation to the investments which are placed into it. The investments must never surpass the value of the business. • Do not think hiring people who know more than you is a good thing. This simply means you do not know enough about your industry. While it is good to employ people with stronger skill sets, you must know your industry. • Do not under value your employees. Pay them more than you think they are worth, and never treat them as pieces of equipment. • Do not ignore your competition. Be sure you shop in their stores and buy their products. You must always be aware of them because they are certainly aware of you. • Do not fail to market and promote your business. The question is not “should you market” but rather how and where to spend your time and money. Never assume you have the answers. The competition is always watching and will force a change, so always be exploring new ideas on marketing. • Do not think you will have all the information before you make a decision. You will often be forced to move forward in small business with limited information. You cannot wait for all the options before you act. Sometimes acquiring the information is more challenging, costly and time consuming than the action itself. • Do not confuse success with wealth. You must understand that being a small business owner is more about your lifestyle choice than a wealth choice. Your decision to move into the realm of small business will give you a lifestyle that is far more liberating than simply working for a company. • Do not forget God. Through the years, nearly all of my poor choices were made apart from God. I am learning more about trusting Him everyday, and I welcome you into this journey with me. As my dear friend Dr. Roy Mason (www.gemonline.org) says, “Christ can do more in fifteen minutes than I can do in twenty-four hours. Jesus simply said, “Seek first the kingdom of God and all these things will be added unto you.” This certainly includes your small business decisions. Now is a good time to talk about failing. I have said many times that I like doing business with people who have failed at something before we work together. Not achieving your expectations is hard, hard on families and hard on your ego. Not to mention your lifestyle will have to change for a while until you can get back on your feet. I like telling the story of a client of mine who bought a franchise from me years ago and did it with big plans and big vision. It was a downtown location, over 5ooo square feet of space, just first class all the way. There was nothing like it in the area, short of a mini food court. After many months of hard work and a lot of money, all the money he had at the time went into this business. He came to the realization that the idea was not going to work. We can talk about why the business failed, but that would fill a book all in itself. So we will leave that to another time. The reason I bring this up is because I have never witnessed a person who had lost so much and yet his character and approach to getting out of business was as impressive as his entry into business. I have immense respect for him. I have told him that I hope my son, when he grows up, would have half the character I witnessed in him as he went through what had to be one of the hardest times in his life. Today he and his wife still own one of the restaurants that I sold to them, and it is doing very well. There is life after a failed business. Your character is defined by how you handle the tough times. Atit, my friend, you have my respect. Job well done! You are an inspiration to many who know your story.