Thanks everyone for all the input on this. It has been enjoyable to read all your comments and hear the different perspectives on this topic.
My personal feeling is that you don’t have to be passionate about what the business does when it comes to owning/operating a business. I think you need to be interested in what the business does but it does not have to be your passion as the real purpose of the business is to be profitable and make you money. 71TA provided some examples of associates who were not passionate about what their business does but I bet that all of those people are passionate that their business is successful and makes them money.
I am thinking semi-absentee because I am not looking to buy a job (I already have one of those). My goal is to increase my income, I only have so many hours in the day to make money and the only way to increase my earning potential is to have someone else making money for me during those same hours. I have first hand experience that employees can be difficult (I have managed a number of people over my career and have to let some of them go for various reasons) so I am aware and understand that whoever is running the business when I am not there needs to be trustworthy (I have heard some horror stories on this from my friends who own businesses). I acknowledge the employees part can be a real challenge if you don’t have the right people working for you and can potentially sink the whole business plan and take a toll on you mentally and financially as TJP and HotRodDave pointed out with their experiences.
Challenger Steve, thanks for the book recommendation as well as the business buyers course, I will look into those.
Poorboy, thanks for the input, you have some good advice in there.
Peabodyracing, thanks for the candid feedback. I suspect you and I think a lot alike about things. I say this based upon the points that you listed, these are all things I have been thinking a lot about as I have been considering buying a business and you summed them up well especially your comments on the balance sheet, cash flow, and the real reason the owner is selling the business. Also, I acknowledge your comment about this not being the best time to start a business. As I have watched what is going on economically in this country I too feel that things are on shaky ground right now. The good news is that I am just in the first phase of this process so I am taking my time and doing research and talking to people and I am in no rush to jump into purchasing something. In order for me to pull the trigger on buying something it will have to be right for me and I will also have to feel confident about the macro environment in this country (both financially and politically) before I dive in.
AndyF, thanks for your comments especially your advise on being honest with one’s interpersonal skills. I work in technical sales so I definitely appreciate where you are coming from on this. Also, thanks for sharing the story about your Dad.
