Finn brokers have dealt with thousands of people looking to buy a business over the years and have realised that some will never progress to purchasing a business. There are many reasons people fail to proceed, but one that stands out above all others is fear.
So we have highlighted how fear materialises in the business purchase transaction and how you can recognise where fear stops you from progressing into business ownership.
The fear of loss or failure is the most apparent reason people fail to progress into business ownership. Fear is inbuilt into all of us, and it is our most primal emotion. For some buyers, fear of loss or failure overwhelms them to the point that they can’t make a decision. So, in the end, they don’t and fail to proceed with buying the business.
Generally, fear materialises in the buyer when the purchase of the business is becoming more likely. The buyer will feel nervous and question if the business is right for them. They start to over analyse the business and get into what is commonly known as “Analysis Paralysis”. Once buyers get to this point, they generally fail to progress and are unlikely to buy a business.
Now we are not saying don’t be careful when buying a business. You must do your due diligence to make sure what is presented to you is a viable business and that what the owner is presenting is true and accurate. But at the same time, you need to understand that there is no perfect business. They don’t exist. All businesses have pros and cons and will have issues or something about it that you as a buyer won’t like; this is the way it is. There are no perfect businesses.
So the question becomes more about: is the risk that I am about to undertake acceptable for the return on my investment?
Weigh up the pros and cons and be aware that fear will be present in the decision to purchase a business, especially if this is your first business purchase. So when it comes to buying that business, remember it is ok to be nervous, but if you do your research and make logical decisions, you are statically more likely to get it right rather than wrong.
Good luck and happy hunting.
