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.

A bunch of great advice has already been offered. A few more thoughts:

Consider the state of your health. A lot of guys start to slow down a bit sometime in their 50's. They don't have the energy and stamina they had when they were younger. Owning a business that requires hard, physical labor could become a challenge. It would also be wise to consider how much stress the business will add to your life. Sometimes our ability to handle stress declines with our advancing years. These factors do NOT affect everyone equally. I know a farmer who is 80 years of age. He is still out doing heavy physical labor every day! He can out work many guys half his age. He loves farming and plan to stay at it as long as he can! He is an exceptional man!

If you want a business that does not require you to daily manage it, consider a business that requires a capital investment. For example, I knew a guy years ago that owned some expensive, specialized equipment. He attempted to sell the equipment, but the market for it was very small and he couldn't find an interested buyer. Since he couldn't sell the equipment, He rented it to another business owner. This other business owner did NOT have the upfront investment to buy the equipment to enter the business. My friend was making some money with very little time or effort invested. Opportunities like this are not real common, but can be found at times. If you consider this option, get some advice on how to protect your investment.

Thanks for asking this question. I've been considering opening a business again. Having employees today sounds like it is even worse than it was a few decades back!!

It's a new generation out there, and the above is likely to be your biggest challenge. keep us posted

I've worked for small businesses where the owner is stuck in hell working 6-7 days a week and long hours doing all the grunt work themselves as they can't get the right group of employees together to make anything work right.

Hiring the wrong type of people and putting them in the wrong positions for their personality, or skillsets. Grumpy people as the first point of contact = bad idea.

Trying to be friends with below average employees that walk all over them anyways. Give them a raise and more paid vacation time hoping to straighten them out, and they still behave the same as before.

Not valuing the actual good employees that do make the place work so they wander off and find a better place at usually the worst time possible. Turnovers can be a disaster and can lead to good people quitting when they get screwed too.


I've also worked for small business that run pretty well, and the owner only shows up to sign checks and to check in on things a few times a week so it's possible.

Some of the under 35 crowd today want a lot of paid time off right up front and "work flexibility" meaning they can leave at the drop of the hat to go wherever with their friends for an impromptu 4 day weekend. They tend not to ask and rather just do it and call in to tell the manager they have left town and will be back "later". These types see jobs as temporary gigs so they tend to not really care about the job enough to worry about losing it.

I work for 3 different telephone companies for 33 yrs while owning and operating my part time engine building and racing as much as I could.
I started off as a apprentice lineman and transferred into installation and repair after 15 months on the line crews due to getting bore with nothing new on the job, I had learned as much as I could on the line crews
I quit the original company and hired on with another telephone company 70 miles away, that was one of the best decisions I made while working in the business.
I put in and got promoted into supervision in 1980 and learn leading people is a skill that can be learned but you need to know your employees and how to inspire them to achieve excellence on their own on a daily basis, pride needs to be use to inspire them
I ended up becoming the problem solver for our area, I would fix one group and then be transfer to another work area and help them, that was very satisfying
No two people are exactly alike so good luck on your decisions
You need to be able to get them to want to help you and your business succeed
Ask them to help you make their work inviorment, (SP) work place better, safer and more productive

You are a mad man.
God bless, brother.

I have been mocked for asking
“What is the Wisdom of Moparts on...”
in past posts, but the replies in this post confirm that there is wisdom.

It is a shame that Infolinks has driven away many previous members with specialized wisdom.

Take everything said above and multiply it by at least 3 for employees to do caregiving for the elderly.

You probably cannot imagine how bad things are on the late night shifts in nursing homes.

When I was in a specialized facility recovering from a triple bypass that went sideways the night shift staff was beyond horrible. If spending time with a loved one who is in one of the specialized facilities, if possible do so at night.

I agree...it is a bad time to stick your neck out. AND avoid having to have employees. AND avoid things you know nothing about. AND keep overhead low.

If you have steady employment and/or significant savings, and could take some risk and begin small/part-time or use it for supplemental income, that would be much less stressful.

Did I mention that you should avoid needing to have employees?

I know of people who got into ebay, small online businesses, etc, and are making out. They found the right products that they could mark way up. And didn't try to be the next Amazon. Also wholesaling to other businesses and avoiding having to deal with the end users. Dealing with the general public is a good way to become an alcoholic.

I know a guy who has a large plumbing business. Was doing really well. Got into the plumbing supply business. Now making bank, has a large facility full of pipe and parts. Sells to himself and all the other plumbers. Same guy has a restaurant. Bought a farm. Raises his own beef, eggs, etc. Sells to other restaurants. He has it figured out.

Buying an existing business. Need lawyers and accountants to look at it closely. I know people who spent big money on a pig with lipstick on.

"The goal would be to buy a business that I could run semi-absentee for the next 3 to 5 years"

Not sure how persistent you are, but it should not take that long to see the error of your ways.

100%
There have been MANY studies done that show the further the owner is away from day to day operations the chances of things going downhill multiply exponentially.
Your only chance of possibly succeeding IMO would be to cut the top manager in with the intention of him buying you out in 5 or so years at a reduced cost. I would advise to do everything in writing and keep real tight control on the cash flow.