13 Dec Who Are The Business Buyers and What Are They Looking For? (Part 1 of 2)
First, why do people want to own or start their own business?
According to Businessweek, when prospective buyers were asked, “Why do you prefer working independently?” the responses were:
- Like to have control over work
- Like to control when and how projects get done
- Dislike working with teammates who don’t do their share
- Recognition is important to me
- Difficult to reach consensus in a team setting
- People who work independently get ahead
When BizBuySell asked, “What are the primary reasons you are looking to purchase a business?” the responses were:
- “Better income opportunity” (55 percent)
- “Be my own boss”
- “Better lifestyle”
- “Currently own and looking to expand”
- “Want a side business”
The survey from BizBuySell.com also produced answers to some of the other questions asked about who the buyer is. For example:
- 75 percent stated that they were looking for businesses priced under $500,000.
- 33 percent of those searching the web site for businesses were 18 to 34 years old; 42 percent were 35 to 49 years old and 21 percent were 50 years old plus.
- 43 percent were female, 57 percent male
- Interestingly, 45 percent had previously purchased a business and 48 percent currently own a business
- When asked what type of business they were interested in and instructed to check any that apply, the results were as follows:
- Established Business 93%
- Pre-Owned Franchise 28%
- New Franchise 17%
- Start-up/Website 17%
The following search breakdown by type of business in order of interest (restaurants being first) is based on almost 850,000 searches – only the top 16 are listed.
- Gas Stations
- Convenience Stores
- Liquor Stores
- Hotels & Other Lodging Places
- Other Eating & Drinking Places
- Beauty Salons, Barber Shops
- Auto Repair, Parts & Services
- Internet Businesses
- Health, Medical & Dental
- Retailing Businesses
- Vending Machines
And finally, a very telling comment from the Bloomberg Businessweek article, concerning Job Loyalty:
“I’d rather know that I’m going to lay myself off than get blindsided by a boss and have security lead me out of the building.”
Tomorrow’s posting will include comments from Tom West on the above information.