There are many types of businesses, so it would make sense that there are also different types of business ownership. As the buyer of a business it is important to consider the type of business owner you would like to be to ensure that you choose a business accordingly. In the following discussion, we will outline the three main types of ownership so that you can make an informed decision about purchasing a business.
Involved. This type of ownership requires a high level of time commitment from the owner. The owner will need to manage the day to day activities of the business, make planning decisions and will generally have oversight over everything that happens within the company. A great example of this type of business might be a large-scale, construction company. The buyer of this business came from a construction management background and they were looking to duplicate their job but with the power to make all strategic decisions about the company.This owner will hire and manage all employees, develop site schedules and push the business forward.
Absentee. Absentee ownership is basically the opposite of being an involved business owner. These kinds of businesses involve very little time commitment and for the most part the business owner has the freedom to do what they like with their time while the business runs in the background. A good example of this business could be a storage company, where aside from an employee who may need to get new clients setup, the business will not need to be tended to.
Semi-Absentee. This type of ownership falls between involved and absentee. It does require some degree of involvement but the time commitment will look more like a part time job than a daily hands on endeavor. A good example of this kind of business could be a retail store, where the employees complete the bulk of the daily work, but the owner needs to complete the ordering, scheduling, payroll and billing for the company.
Hiring Management. There is one final option that plays into the structure of your business ownership and that is hiring a manager. You would be hard pressed to find a business where you can’t hire a manager to take over some or all of your ownership responsibilities, but, of course, this can come with some drawbacks. Paying the managers salary will cut into your profits. Also, if the business requires specific or special expertise to run it, you may have a harder time finding a professional to fit the bill.
Whatever your business ownership preferences are, Transworld - Rocky Mountain can help you find a business that fits your goals. For more information on buying a business, please visit our website or schedule a free consultation today!
Rachael Holstein joined the Transworld Team in 2016 as Marketing Coordinator. Her working experience has been largely focused on Business Development and Marketing in the finance, architecture, property management, and information technology industries. A long time resident of Cleveland, Ohio, she attained her Undergrad from John Carroll University and a Master’s Degree in Global Interactions from Cleveland State University. She relocated to Denver in 2013 for a change of scenery and a bit of adventure.
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