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If you’re considering stepping into business ownership, one of the most important questions to ask yourself is: Why do I want to do this? 

Your “why” is more than just a motivator – it is your compass. Understanding your purpose  – whether it’s gaining independence, building a legacy, making an impact, or securing your financial future – helps you to find the right opportunity and business that aligns with your values and goals.

Once you’ve clarified your “why”, you can define your non-negotiables and ideal criteria. This gives you a framework to evaluate ownership pathways with confidence and clarity.

Define Your Ownership Criteria

Knowing what you don’t want can make it easier to pinpoint what you do want.

For example, if your goal is to improve work-life balance – perhaps by working flexibly, traveling more, or spending time with family – then a hands-on start-up requiring 70-hour weeks may not align. In that case, an online business or an established company with flexible values might be a better fit.

On the other hand, if your purpose is to create an impact in your community by filling a vital need, your criteria may focus more on working collaboratively with other partners by sharing resources to increase reach and improve service delivery rather than on hours worked.

Ultimately, it’s about understanding what matters most to you and what you’re willing to compromise on. Make yourself an yes, maybe, and ‘hard no list’, think about things like:

• Location
• Industry
• Size of business
• Your role in the business
• Do you physically need to be in the business.

What It Really Takes to Run a Business

Owning a business often means wearing many hats. You don’t need to be an expert in everything, but you do need to understand how each part contributes to the whole.

Here are some of the key areas small-to-medium business owners often juggle:

📋 Administration: From payroll to compliance, the back-office work matters.
💼 Sales: Driving revenue and building customer relationships.
🧑‍🤝‍🧑 Managing People: Hiring, leading, and supporting your team.
🤝 Key Relationships: Maintaining strong ties with suppliers, clients, and advisors.
🚀 Leadership: Setting the vision and culture of your business.
🛠️ Production or Service Delivery: From being on the tools, creating a product, to ensuring your product or service meets customer expectations.

Part of the juggle is knowing your strengths—and where to bring in support. Your role is to ensure each area is well-managed, whether by you or someone else, and that you maintain oversight and understanding across the board.

Explore Your Ownership Pathways

There’s no one-size-fits-all approach to becoming a business owner. Depending on your background, resources, and ambitions, you might explore one or more of the following pathways:

Even if you are becoming a business owner through a family succession plan, it is essential to follow a formal process. Clear agreements, structured planning, and open communication help ensure a smooth transition and long-term success.

Key Considerations Before You Dive In

Before you take the leap, here are a few big-picture items to think about:

Do you have a personal financial buffer to support yourself during the transition? And have you explored the different options available to fund a business purchase or buy-in of shares?

Business ownership often involves significant upfront costs and often a longer-than-expected path to profitability. In many cases, new owners go without regular income while the business finds its feet. Make sure you have sufficient savings or alternative income to cover living expenses and any debt repayments during this period.

If you’re joining an existing ownership group, how will shareholder introduction and transition be handled? Are your values aligned?

While entering an established business offers advantages – like existing teams, systems and a customer base – it’s essential to have clear communication, and an agree decision making framework from the outset. Alignment on long-term vision and values is critical. If owners are pulling in different directions, the business will struggle to move forward.

Also, be realistic about ownership expectations. If you’re aiming for majority control but current owners plan to retain theirs for the next decade, you may face a frustrating road ahead. Agreeing a shareholding buy in timeframe up front is essential.

If you already have a business opportunity in mind, it’s essential to ask: How well do I truly understand this business? A thorough due diligence process helps ensure you’re seeing the full picture—not just the surface-level appeal.

Effective due diligence goes beyond financials. It includes:

• Industry-specific knowledge – Are there regulations, trends, or technical expertise required?
• Seasonal revenue patterns – Does the business rely heavily on certain times of year for income?
• Customer relationships – Who are the key customers, and how might a change in ownership affect their loyalty or contracts?
• Seller readiness – Are the current owners genuinely prepared to sell, or could you be investing time and money into a deal that may never close?

Due diligence can take many forms—financial, legal, operational, human resources, and strategic- with each offering a different lens through which to assess the viability and risks of the opportunity. For example, operational due diligence looks at systems and processes, human resources due diligence examines staffing and culture, and legal due diligence ensures compliance and clarity around ownership and obligations.

Are you familiar with how businesses are valued, how the sale process works, and what can be done to increase a business’s value after it’s been bought?

You don’t need to be an expert in valuation, but it’s important to know exactly what you’re buying and what’s not included. Misunderstandings often happen when buyers and sellers have different ideas about what a “complete sale” means, and the process can take longer than expected.

Valuation is just the starting point. To make your investment successful and get a faster return, you need to make sure that the key factors driving the business’s value aren’t negatively affected by the change in ownership. You should also have a plan for improving the business’s performance after the purchase.

Where To From Here?

While many of these considerations may sound daunting, stepping into business ownership can, and should, be an exciting process. With realistic expectations, the right knowledge, and strong support, you’ll be equipped to make decisions that reflect your values and shape your future.

Every business journey is unique, and the right support can make all the difference to your final outcome – whether that’s a mentor who’s walked the path or a trusted advisor who helps you see the full picture.

Thinking about your next step? Whether you’re exploring ownership for the first time or stepping into a family business, we’re here to help. Get in touch with the team at Velocite to start the conversation.