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Why Own Your Own Business? With all of the problems facing a small businessman, why would anyone in their right mind want to own their own business? Small businessmen are always threatened by many cost issues such as; increased employee taxes, increased safety issues, increased environmental issues, and others. Let alone the need to make a worthwhile profit to maintain a decent livelihood for themselves and their families. The USA has about 25 million businesses. The overwhelming majority of these businesses (77%) have no employees at all. The US government defines companies with less than 500 employees as “small businesses”. 99.9% of all US companies fall into this category and they employ more than half of the US population. Small businesses are the growth life-blood of our country. They employee the most people and are the most creative. They produce 13 to 14 times more patents per employee than large patenting firms and their patents are twice as likely to be among the 1% most cited. Yet the press seems to be pre-occupied with the large public companies that have a more significant impact upon a larger number of industrial jobs at one location, not total jobs in a collective sense. How many times have we heard the comment “It won’t work” from an older person who has been in the business longer? They are completely shut off to reality and new ideas. The automobile industry is a good example today – trying to change using the same old business model and not utilizing new and creative ideas from younger people. Thus, the only path to success for many younger people is to own, or start, their own business where they are their own boss. Buying a business, which already has a history, culture, a client base, revenues and profits, that they can relate to and, one in which they can make a significant personal contribution, is their only alternative. In a recent conference call with two prospective individual buyers, our client (who was selling his Company), and my Partner and I, it became quite clear – people want to own and run their own business so that they can escape the bureaucracy of a large company and be their own boss. In big companies you soon realize that you are only a “number”. If you are run over by a truck tomorrow, the big business will go on. I used to go on vacation and call the office every day to see if I needed to make a decision. I soon realized that the company did not really need me, because a large company is bigger than any one person. Many of us whilst working in the “corporate world” have been questioned about our capital requests or decisions by people not as smart as us, with fewer capabilities, and they are in their positions because they have been there longer – thus, we make a decision to “run our own show”.
Owning your own business allows a freedom of decision with your own invested capital. Sure, you must play by the rules, laws, and other requirements of society. However, if you make a generous profit you can enjoy it. If you feel personnel plans should be improved you can improve them to your standards. You can make policies and procedures in your business, and essentially be your own boss. Ultimately, you are responsible for the entirety of the business and its employees. The pressure is great but the personal and business rewards can be significant. Efficient Evolutions LLC represents both buyers and sellers in the mergers and acquisitions process. We employ a unique system employing a personal SWOT analysis, and other value added tools, to help a person, or company, fully understand why they want to buy a business and what the full ramifications are to owning a small business. Our program for the business buyer also utilizes market research using SIC Codes, personal calls to target companies, valuations, and the identification and qualification of target companies to assist financially capable individuals, and companies, in their search for the right company to purchase. |
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