What Stops You From Buying a Business, is it Fear?

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What Stops You From Buying a Business, is it Fear?

“Having dealt with hundreds and hundreds of people looking to buy a business over the years I have come to realise that some will never progress to purchasing a business. There are many reasons people fail to proceed, but there is one that stands out above all others, and that is fear.

 

So I have highlighted how fear materialises in the business purchase transaction and how you can recognise where fear is stopping you from progressing into business ownership.”

By Len Ferguson

The fear of loss or failure is the most pronounced 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 just overwhelms them to the point that they can’t make a decision. So in the end they don’t and fail to proceed into buying the business.

Generally fear materialises in the buyer when the purchase of the business is becoming more likely. The buyer will start to feel really nervous and question if the business is really 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 I am not saying don’t be careful when buying a business. You must do your due diligence to make sure what is being presented to you is a viable business and 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 just don’t exist. All businesses have pros and cons and will have issues or something about it that you as a buyer just won’t like about it. This is just 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…