Is Buying Your Own Company a Good Buisness Plan?

Many people believe that buying your own business is too risky. But personally, I think that putting your fate in someone else's hands carries far greater risk.

Of course, there are risks in buying a business. But many of them, if not all, can be eliminated by doing your homework beforehand. If you follow these steps recommended by Richard Parker, professor of Trump University's new course The Art of Buying a Business, you'll be well on your way:

• Educate Yourself. Accept the fact that nothing you've done before has prepared you for the business-buying process. Even if you've handled corporate acquisitions in the past, you are playing with your own money now. That demands a whole different mindset. Learn how to write a business plan and stick with it.
• Learn about the kind of business that you will buy. If you're a first timer, it only makes sense todevour tons of information about how to buy a business, but don't overlooklearning about running one too. So be sure to study the specific challenges of running the kind of enterprise you are considering, whether it is a real estate office, a consulting company, a bicycle shop - or anything else. Talk to people who already own the kinds of businesses that you are considering.
• Take an honest look at your personal strengths, interests and weaknesses. Your goal is to buy the business that is right for you, the one that you are best equipped to run. Don't try to be something you're not. It's fine to learn lots of new skills when you're working for other people, because you're on their dime. But when you're working for yourself, you can hardly afford it.
• Put together a "laundry list" of specifics. Don't only say: "I want it to make a lot of money." Also identify specific characteristics that your new business must have. Should profits be sales/marketing-driven, for example? Should it allow you to work from your home, or to travel? Would you like to supervise a staff of employees, or work largely on your own? Use your "laundry list" as a litmus test that you put every business through. If a business does not conform - don't buy it!
• Get the word out. You may not want to tell your boss that you are buying a business, of course. But let everyone else in your circle know your plans. This serves two purposes: it will generate leads, and it will put a little pressure on you to make it happen.
• Set a timeline for the purchase - and stick to it. Don't allow yourself to be in the same position next year. Six months from today, you should be in your own business. Take a blank sheet of paper and write on it with a big black marker: "I'm buying a business this year!" Post it in a place where you will see it every morning, and if possible, throughout each day.

Above all, get into the game. Don't be overly analytical in the early stages, just search listings of businesses for sale to see what's out there. When a business sparks your interest, arrange a meeting with the seller and ask a lot of questions. Just start amassing knowledge and one day soon, you'll be ready to enjoy your success!

Michael Sexton is President of Trump University. The concepts presented here are covered in depth in Trump University's newest success course, The Art of Buying a Business, presented by Trump University Professor Richard Parker.