The Myth of the Small Business Market: Unveiling the Truth

The Myth of the Small Business Market: Unveiling the Truth

A viewer recently asked about the current market for small businesses. Reflecting on my early days as a business broker, I realized my understanding has evolved. Initially, I thought the market was great, but I hadn't grasped its complexities. https://youtu.be/aOFhyYjFoYc

Understanding Small Business Markets: It’s Not One Size Fits All

Over time, I learned there's no single market for small businesses; each category has its own unique dynamics. Unlike real estate, where markets are transparent, small business transactions are often secretive and opaque.

The Complexity of Small Business Buyers

Buyers have specific preferences, making the market even more fragmented. For example, an engineer might seek a manufacturing facility, not a flower shop, just as a buyer for a five-bedroom home wouldn't settle for a three-bedroom one.

The Impact of Government Policies on Small Business Markets

In New Brunswick, Canada, government policies like the provincial nominee program have spurred demand for simple-to-operate businesses among immigrants. This has led to newcomers overpaying for businesses, distorting market dynamics.

Conclusion: Navigating the Nuances of Small Business Markets

There's no singular market for small businesses; each operates within unique parameters. The secretive nature of transactions and government policies add to the complexity, making it essential to understand these nuances when buying or selling a small business.

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Joel Ankney

Business Lawyer & Author

1 个月

I have been using that word (evolved) a lot to describe the changes I've observed in the Entrepreneurship Through Acquisition ecosystem over the past few years

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Lori Highby

Digital Marketing Expert | B2B Digital Marketing Strategy | Marketing for Manufacturing and Construction | WordPress Website Design/Development | Content Creation | Email Marketing Automation | SEO | Speaker | Podcasting

1 个月

Absolutely. Ever small business has their own preferences and idiosyncrasies.

Bren Kinfa ??

Helping 15,000+ Founders Discover the Best AI & SaaS Tools for Free | Founder of SaaS Gems ?? | Curated Tools & Resources for AI & SaaS Founders ??

1 个月

The small business landscape's a wild ride. Market dynamics shift like quicksand—what’s driving these changes now? David Barnett

Rocky Lalvani

As Chief Profitability Advisor, I Help Small Business Owners Maximize Their Business's PROFIT so that they have time and freedom to do what they love. Host of The Profit Answer Man & Richer Soul Podcasts, CFO

1 个月

Not only that it’s timing. What’s hot today may be cold by the time you invest, operate and start expecting profits or are ready to sell. Car washes are a perfect example of a bubble that may have popped in certain markets.

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Rhys Lyster

Licensed Estate Agent | Certified Practicing Business Broker

1 个月

Great perspective David. Each small business is as unique as the people running them. Unlike real estate where it has very little to do with the owner, small biz has everything to do with the owner.

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