…without the usual risks
There is no doubting it, having the title of ‘business owner’ is a lure for many.
Why wouldn’t it be? To experience the freedom of no longer having a boss, of being able to call the shots, and of course, to be able to work when you want, where you want, and with whom you want.
So, if owning your own business is such a common aspiration, why don’t more people make the move from employee to business owner?
Well quite simply, it requires taking risks. So much so that its often referred to as a ‘leap of faith’. Unfortunately, when it comes to starting a business – far more fail than succeed.
In an article posted on Inside Small Business, Heather Marano shares a statistic that talks to the peril of so many… “more than 60 per cent of small businesses in Australia close within their first three years.”
For employees who do want to transition into business ownership – minus the traditional ‘leap of faith’ risks – what is an alternate approach they can take?
You will be surprised to learn there is a far simpler, tried and tested path which is beginning to trend upwards – in a big way – and for good reason.
In my work in recruitment across Newcastle and the Central Coast, I have seen this firsthand – growth in new job roles with opportunities for business ownership (i.e. equity) attached. By this, I mean the job applicant has an option to either buy a share in the business or be gifted a part share of the business in exchange for delivering certain results.
This is a trend which is not uncommon in senior roles within financial services businesses, i.e. financing planning and accounting practices.
In his post, Beattie – an adviser to countless small and medium sized businesses across Newcastle and the Hunter – talks about two factors that, when combined, spell enormous opportunity for employees who wish to one day become business owners.
1. The big generational shift
In recent decades we’ve seen a huge reduction in the number of businesses being handed down through generations – as Beattie writes “As of 2016, below 25%… (of all business owners) planned to pass their business on to the next generation.”
Without a daughter or son to pass their business on to, owners are needing to consider other exit strategies if they are to receive any financial reward come retirement.
2. A buyer’s market
As Beattie points out, this has everything to do with the laws of supply and demand: “More businesses are coming onto the market – a direct result of baby boomers looking to get out.”
A very real issue which as reported by Cara Waters in The Sydney Morning Herald means “retiring baby boomers are struggling to sell their business…”
So, what does it all mean?
If you are an employee, it means there has never been a better time in history to transition into business ownership without the usual risks. It represents an opportunity to take a stake in a business with established structures, relationships and a reputation that ordinarily take years to build; all of which are so critical to the success of any business.
For business owners, it’s a great way to maximise what they receive on exit or retirement, and importantly, it’s an approach which ensures they are able to exit according to their timeline and terms with more to show for their hard work and sacrifice than grey hair and gratitude.
If you’re an employee with aspirations to become a business owner, we can help. More match makers than recruiters, we’re in the business of helping great people realise their full potential. And we do this by matching candidates with businesses that are going places.
Register your details with CRG today and ensure you are in the loop when the next business ownership opportunity becomes available. From experience I can assure you they don’t last long.
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