Today, we would like to briefly touch upon a common question we are often confronted with by (mostly) first-time business buyers: what makes a successful entrepreneur – or more importantly, will I succeed in the business I am about to purchase?
There is a significant number of articles, blogs and other material written on this topic, however, when making the decision to buy a business or not, most contributions fall short of giving a specific answer.
Most first-time buyers find themselves in a position to purchase a business for various reasons: loss of a job due to corporate downsizing – with the most significant impact on the 50+ year old individual – , dissatisfaction with the current employment, or the desire to take a whole new direction in one’s life.
And while we can look back on many closed deals with first time buyers, there is not one particular trait that could indeed be considered the most important quality to be successful. We have noticed, however, that successful individuals seem to be somewhat more detail-oriented asking many questions and tending “to take things apart” to then “putting them back together” before entering into a business.
Having said this, one can immediately argue that “laid back” entrepreneurs are certainly by no means less successful. And indeed, there is simply no hard data supporting one thesis or the other but it’s merely a personal observation.
In sum, there are simply too many factors making a business successful or not, not least the economic environment and competitive field. And one should not forget to ask whether a company’s product or service has a sustainable competitive advantage in succeeding over other suppliers and vendors, as even the most talented entrepreneur will be challenged to overcome an inferior service or product.
Written by Achim Neumann, NJ
A Neumann & Associates, LLC