I have been in Business Broking now for more than 25 years. In that time, I have sold more than 500 businesses and probably looked at and appraised more than 1,000 businesses of almost every imaginable kind. We deal in the “SME” (Small to Medium Sized Enterprise) range valued between $100,000 and $10,000,000 or more. Sometimes a bit less, and sometimes more.
According to Statistics NZ there are around half a million registered businesses in New Zealand. A small number will be outside of our SME range, many are one-man-bands and many are holding companies not trading on a day to day basis. That leaves in excess of 300,000 actively trading businesses for a population of 5 million. That’s a lot and why so many? Napoleon Bonaparte referred to “England is a nation of shopkeepers.” I wonder what he would have said about New Zealand.
Why are we so keen to own a business? In my experience there are 10 basic reasons. Some of these overlap.
Independence, social status, personal pride, respect and fulfilment
Flexibility. Mould your business, occupation and hours to suit your personal situation
Establish your own goals and priorities. Cater to your own interests
Determine the culture, the location and the environment that suits you
Recruit your own team and choose your own workmates
Financial independence and better disposable income
Create an asset, a nest-egg for retirement and a legacy for your children and grandchildren
Choose an occupation you enjoy. Your interest or hobby may become your business or vice versa
Generate your own opportunities, assess the risk and reap the rewards yourself
Back your own judgement, make your own decisions without having to argue the case with someone else
Of course, there are other reasons, but these I see as the main ones. To achieve the best result, you will need the ongoing help, advice and assistance of four qualified and experienced professionals, namely a Solicitor, an Accountant, a Banker and a Business Broker. They can mentor and guide you through the minefield of finance, compliance issues, taxation, budgeting etc.