Just For Women: Buy a Business, Fulfill Your Passions!
A transition into small business is a natural progression for countless women who have invested the first phase of their careers in the corporate world. Paradoxically, many women are not focused on these opportunities, or if they are, they are unaware of the entire spectrum of possibilities, which includes not only starting a business from scratch, but buying an independent business or franchise as well as partnering with other small business owners.
Women do not arrive easily at the conviction that they can find-- and afford to acquire-- an existing business that also fulfills their personal passions and interests. In fact, brokers I interviewed for my book, Smart Women and Small Business, say that less than 10% of independent businesses they broker and less than 25% of franchises they sell are acquired by women. (One reason for this may be that 95% of business brokers are men!).
Women who seek to buy rather than start a business are indeed a rare breed, but that’s mainly due to lack of exposure rather than lack of suitability. Although the general public has heard the message than women are starting businesses at twice the rate of men, not only is the topic of “entrepreneurship by acquisition” rarely featured in the mainstream press, it’s not a common topic in women’s publications either.
Ironically, my experience shows that women can relate better to the small business pitch than most men, and they are especially hungry for entrepreneurial career solutions. They want to be their own bosses, set their own schedules and priorities, earn an income that is directly related to their business talents and contributions, and feel proud about the products and services they are offering. They should, and hopefully will in the future, make up about half of all business purchasers.
Whether you are a woman in business for yourself or someone who has the chance to advise women in their entrepreneurial endeavors, here are some key insights that will open women’s eyes to all their options in the small business world:
- You can express your passion through a business you didn’t start. Before you decide to risk everything to pursue your original business idea, explore whether you can improve upon someone else’s existing concept or similar business. For many women, passion is the vital ingredient in a business, but women should be open to different ways of igniting and channeling that passion. Businesses that have customers and cash flow provide an entrepreneur an amazing head start- something to get passionate about in its own right!
- Seeking adequate financing early allows you to grow to your optimal size. Many women-owned businesses start small, and stay small (as in: too small to make your efforts financially worthwhile). Million-dollar revenue businesses owned by men outnumber those owned by women by about 8 to 1. Don’t let this be you. Seek bank financing and/or seller financing as a way of ensuring that the business you buy or start will be sustainable. And as you do so, don’t be too afraid of giving a personal guarantee- it’s simply an established part of doing business.
- Women, with their excellent relationship skills, are well suited to taking over existing businesses and working through transitions with retiring business owners. Anyone who has bought an existing business or taken over a family company knows how valuable the expertise of the departing owner can be in a transition. Women’s less aggressive, team-oriented management styles can often work well in these situations.
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