Tracy Emerick’s Buying a Business Experience
Over the years I have bought or started many businesses, two businesses that never went anywhere cost me and my wife $50,000 each. From these experiences I learned that its real easy to spend money which is not the right thing to do. Now I follow my own advice about buying a business:
1. Make sure you have money after you buy your business
2. Be an expert in the business or have excellent support systems
3. Have dreams/visions owning a business will fulfill
Buying a business on the cheap is one answer to having money after you buy your business. But cost is not the only issue in buying a business be it a full time or part time business. The importance of money is that when you are out of cash you are out of business. So, it became essential that I not spend all my money in the purchase. And, make sure my business has enough cash flow to support its needs so I don’t have to keep feeding in cash. The most recent business I bought cost me under $500 and doesn’t require additional investment in the business other than an annual renewal for under $200.
The fastest way to fail in a business is to buy a business you don’t understand. As the saying goes, “been there, done that, got the t-shirt.” A a few occasions I knew I was in trouble when I spent more time understanding the business that working the business. In one business I was managing four computer programmers and I didn’t even know what they were talking about – real bad idea. My latest business is real easy to understand – be a consumer and help people make money. Not hard to understand or explain, I’d like the opportunity to explain it to you.
Love buying a business just to be a business owner is not my answer, I’ve owned several businesses. My dreams/visions are what’s carrying me through the work required to be successful in this new business. The business of the business can be satisfying and enjoyable, but I will only be successful when my business is a means to an end, not the end.
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