Fed up of being an employee? Why don’t you buy the company you work for?
I’m seeing a little bit of a trend just lately. People are selling up. I think it’s fair to say that the last 18 months have been trying, even for the best of us. We are mostly exhausted, fed up and worried that we’re a long way from safe yet.
A lot of business owners have had enough. They’ve struggled to make ends meet, they’ve worked hard, and had very little thanks. Customers don’t like following rules, employees either hate furlough or don’t want to come off it, and suppliers are hiking up their prices.
Why on earth then, would I be suggesting that you buy a business, and expose yourself to that type of stress and hassle?
When I’m tired or stressed, I’m also extremely grumpy – “ratty” I think my Nan calls it. I get overwhelmed, and can’t see the wood for the trees. There are probably opportunities and easy fixes, but I just can’t see them, because I’m fixated on what isn’t going well, rather than what could be going well.
Other business owners are just like that. They’re tired and grumpy too, and having had the benefit of previous trading years, can make comparisons and decide that the past year or two has been awful.
However, for an enthusiastic, energetic potential business owner, there is nothing but opportunity. How many of these businesses might flourish with a fresh pair of eyes, and a new plan? Someone who knows the business already, and can implement new ideas, maybe new technology too, to take advantage of little green shoots that might now be showing. Whilst a lot of businesses might have seen a drop in profits, they are still profitable, and with the right nurturing, they could be very profitable.
There are lots of other drivers out there at the moment, also making sellers think about selling. Arrangements relating to pensions, and threatened changes to Capital Gains tax mean that now, more than ever, people are considering early retirement. Covid just sped that process up a bit. What’s more, because people are retiring younger, they are willing to take the sale price over a deferred period – on the drip, so to speak. That means someone with very little cash to put in, can actually buy themselves a nice little business, possibly even without even spending their own money.
If you work for such a business, then you’re in a prime position. Hopefully your employer likes you, and would love to ensure their business goes to a safe pair of hands. They may also be happy to allow you to pay for it in instalments. As an employee, you can already see the potential in the business, and maybe already have ideas about how to improve it. Could you take the business on?
Of course, you’ll still need a business plan, and maybe some funding, but you might also get the benefit of a handover from the seller, who would help handover the business over a period of time.
If you think you work for the type of business I’m describing, what not have a think, and see if business ownership might be the thing for you.
