Should You Buy an Absentee-Run Business?
Many people want to be business owners, but they want to do it on their terms. They want to take the easy way out and generate passive income.
Not having to run a business on a daily basis? Most people would say, yes please! But let’s face reality — this is not the norm. This is especially true for new business owners and smaller businesses. If you don’t want to spend time operating your business, then chances are you’re not going to be raking in the cash. This is especially true if you don’t have the right team in place. This includes skilled management.
Yes, there are “programs” out there that will teach you about the ins and outs of an absentee run business and how you can use it to generate passive income. Yes, many claim that you can buy these businesses for cheap and make hundreds of thousands of dollars a month. But as the saying goes, if it sounds too good to be true, it probably is. These are scams and you should not fall for them.
While it is possible to build a business and be an absentee owner, it will require some work up front. There needs to be a plan in place where you transfer operations to a manager or partner.
You cannot be an absentee owner from Day One. Especially in the beginning, you will need to put in some work. You will need to immerse yourself in the business so you understand how it operates, what improvements should be made, what problems need to be fixed, who will be the key people involved, and many other aspects. You need to learn the business first before you can teach it to someone else.
You also need to be prepared for issues that occur along the way. What if the manager quits or you need to fire them? You will be stuck with an investment unless you truly know how to operate the business. Without proper knowledge and preparation, your business will more than likely head south quickly. The employees have no bond with you and they won’t have any confidence in you. This is quite surely a recipe for disaster.
The takeaway from this is don’t buy a business blindly. You need to be realistic about your goals and expectations. Get involved at first. Then, when you’re ready, you can have someone else take the reins.
Learn More About Purchasing a Business
Many people want to run a business and make money without having to spend much time on it. While some businesses may be able to operate like this, the vast majority need daily involvement.
Need help buying and running a business? Orlando business purchase & sale lawyer B.F. Godfrey from Godfrey Legal can provide you with the legal advice you need. To schedule a consultation, fill out the online form or call (407) 890-0023.