Becoming an entrepreneur doesn’t happen overnight. If you’re thinking about beginning your journey to financial and professional independence by starting or buying a small business, there’s a lot of things to consider. The amount of information out there can be overwhelming - but you’re not in it alone.
In this article, we speak to five experienced entrepreneurs who have all used BusinessesForSale.com to successfully buy or sell a small business. They provide free business tips and small business advice, which will help steer you in the right direction if you’re thinking of going down the same path. They can help you avoid some of the common pitfalls of being a small business owner, and ensure you set yourself up for success.
Small Business Advice from Serial Entrepreneurs
Lesson #1: There are Always Gaps in the Market – if You Can See Them
The two key ingredients all successful small businesses have are a gap in the market and a good idea. That might mean identifying a street in your local area that’s sorely lacking a basic service like a laundrette, but you don’t have to be restricted by thinking locally.
Entrepreneur Matteo Larghi, who we spoke to for this business success story, made a trip to Japan in 2006 where he started regularly drinking matcha tea. Upon returning from his trip, he noticed the drink was growing in popularity outside Japan, and decided to jump on this rising trend by launching a matcha café in Bali, Indonesia – far from his native Italy.
The business was successful because it found a unique niche in the marketplace. Few, if any, other cafes were selling matcha tea and the growing number of international tourists led to high demand. Another secret to the success of Matcha Café Bali was it’s high-quality website (thanks to Matteo’s previous IT and web design experience) as well as it’s savvy shift to e-commerce during the Covid pandemic. After selling the business and moving back to Italy, Matteo’s new business Matchakin focuses largely on the e-commerce operation, after noticing many of his customers preferred to buy online and make their own matcha tea at home.
Secret to Success: Spotting an international gap in the market, building a strong website, and a timely shift to e-commerce.
Lesson #2: Don’t Go It Alone – Seek out Good Advice, and Pay For It
Part of the appeal of becoming an entrepreneur is to become your own boss, work to your own schedule and build your own business from the ground up. But that doesn’t mean you should go it alone. One of the most important first steps you can take on your entrepreneurial journey is to seek out good advice, and that often means paying for a business broker, financial advisor or lawyer. This is especially true if you’re thinking about buying a small business as opposed to starting one.
You might think you don’t need it - but you’d be surprised how much you could save later by paying for good advice now, according to serial entrepreneur Richard Tomkins. Tomkins successfully purchased Fine Scottish Hampers through BusinessesForSale.com, helping him to escape a “corporate treadmill” he was getting increasingly tired of.
He says the biggest lesson he would pass on to aspiring entrepreneurs is to check the fine print – or pay someone trained to do it for you. “I’d have happily paid someone £1,000 up front to warn me about potential problems, which could have ended up saving me £10,000 further down the line,” says Richard. “Things like the depreciating value of stock, contracts, domain names – all the nitty gritty details.”
Giving yourself plenty of time to conduct thorough due diligence (which we break down in more detail in this article) can save a huge amount of time, money and stress for business buyers. But the advice applies just as much to those starting a business – good financial advice for small business owners will go a long way.
Secret to Success: Thorough due diligence, and strong advice from a broker, financial advisor or lawyer.
Lesson #3: Target your Marketing Spend with Absolute Precision
Small business owners don’t have the same marketing budgets that big corporations do – but that doesn’t mean they can’t compete. Nathalie Sanfacon and her husband Martin purchased Upper Clements Cottages, a hospitality business in Nova Scotia, Canada, from BusinessForSale.com in 2016. They grew it into a business success story with the help of a highly targeted marketing plan, despite facing competition from the meteoric rise of AirBnb.
At the beginning of every year, they carefully evaluated the data to see where exactly their customers were coming from online, and focused their efforts in those spaces. It turned out they were receiving more bookings and enquiries from the tourism department and provincial websites than from sites like Booking.com, so they focused on strengthening those relationships. Building connections with other local businesses also helped – Nathalie and Martin would advertise Upper Clements at local electric car recharging stations, and other businesses in the area.
Of course, this won’t work for everyone and for many, a targeted marketing strategy might be more heavily focused on SEO and organic search. The world of marketing is undergoing a big shift at the moment, as AI revolutionises the way people find information online. Having a coherent SEO/AI marketing strategy, and discovering where your money is best spent for maximum returns, is crucial. Try reading our article Simple Tips to Supercharge your Business Using SEO for more small business advice and business tips.
Secrets to Success: A targeted marketing plan, building local connections, and planning ahead for SEO and AI.
Lesson #4: Start (or buy) Something That Matches Your Lifestyle
Here’s a simple truth: running a business is hard. You have to be prepared to put a lot of your time and energy into making it work, and keeping it operational. Some people will tell you to only start a business you’re passionate about, but passion is overrated. Sometimes the boring businesses are the most successful, and the easiest to scale. Is anyone passionate about laundry, or vending machines? Probably not, but that doesn’t stop them from being reliable, profitable ventures with comparatively low failure rates. What you do need is a business that matches your personality - and your schedule.
Kerry Craddock launched a successful e-commerce business, Party Bag World, alongside her husband Jason in 2011. The business created customised party bags for children’s (and later adults) parties, gaining clients such as playcentre chains, hotels and McDonald's before it was sold through BusinessesForSale.com eight years later. E-commerce was the perfect setup for Kerry and Jason, who were able to grow the business while balancing it with parenting their young children (who also provided inspiration for the party bags!)
When asked what advice she would give to aspiring entrepreneurs, Kerry said: “Be really adaptable and open to changes. We never thought we’d go down the wholesale route, but when the opportunity came we took it. You just have to have faith in yourself and make it happen. Also – listen to your accountant! They can provide strong financial advice for small business owners.”
Secrets to Success: Start or buy a business that complements your existing skillset, and fits around your life.
Lesson #5: Build a Strong Culture, and it’ll Thrive Without You
Once you’ve got your small business off the ground, the next step is turning it from a one-person operation into a thriving and independent team. In this article, the operators of several successful McDonalds franchises shared with us their secrets to success - and building an inclusive and fun workplace culture was at the top of their agenda.
Pierre-Charles Tardif, who owns several McDonald’s franchises in Montreal, gave some free business advice: “The first challenge was to build confidence in each other, and it has to go both ways.” For him, that meant being prepared to work shifts in less glamorous parts of the store such as cleaning and kitchen prep, to make sure he understood the day to day work that all of his staff were facing.
“When I’m in my restaurants I always want to create that culture and to encourage people to have fun with their work, even when it is challenging,” says Pierre-Charles. “You have to take the time to learn about their lives – what do they do in their free time, do they have kids? Then you can create a culture where everyone is welcome.”
Setting up incentive schemes, days out, fun workplace routines and traditions can help build culture within your team. If you’ve truly put together an independent and motivated team, they should be able to function even when you aren’t around. It might sound strange, but if you’re thinking about selling your business someday, you actually want your team to make you obsolete. If the business can function just fine without your micromanagement, then you know you’ve built something resilient and successful.
Secrets to Success: Take time to learn about and empathise with staff, build a strong culture, make yourself obsolete!
