Just Laid-off! Should I Buy a Business?

Hundreds of thousands of perfectly capable employees are been laid-off in the current economic climate. Many are turning to small business ownership as the alternative to the tough current job market. So, is it the right solution? there is certainly no general answer that fits everybody.As a business broker in Toronto, Ontario, I can certainly recognize the growing trend of downsized corporate executives/employees seriously looking to purchase an existing business. Unfortunately recent statistics in North America have shown that despite this enthusiasm, only 10% of potential business buyers buy a business in their lives. The other 90% find job alternatives. This is so unfortunate since the majority of these buyers sincerely believe that will buy a business and devote tremendous time, energy and money to the purchase of a business. While already in a very precarious financial situation, 90% of these potential buyers will have their finances deteriorate even more because of a non adequate wish. The fact is that the purchase of a business requires some risk tolerance capacity that most people don\’t have.  No matter how hard you can try to evaluate a business opportunity, you will never eliminate the risk completely. It is necessary to stop analyzing and take a big leap of faith at some point and the majority of people cannot do it. This is what separates entrepreneurs from employees. It\’s an entrenched personality trait and there isn\’t much you can do about it in the short term.Therefore, if you have been laid-off recently, then seriously consider all your options. Do a serious investigation about your own personality and find out how tolerant you are to risk. Don\’t let ego and proud misguide you. There is nothing wrong in recognizing that you will be better off as a lifetime employee. However, those who manage to take the described “leap of faith” and who do a good job in selecting a reasonably priced business with a viable business model that fits their personality end-up reaping huge rewards. To cite only a few: more control over your destiny, higher income, increased self esteem are among the huge benefits of business ownership.