Owner semi-absentee business

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Tech
Posts: 67
Joined: Wed Jan 24, 2018 1:31 pm

Owner semi-absentee business

Post by Tech » Mon Mar 12, 2018 7:41 pm

I am looking to gradually change my position from an employee to a business owner.
Are you running a semi-absentee business successfully?

Need help point me into the right direction as to what business to buy, pro and con.

Spirit Rider
Posts: 8553
Joined: Fri Mar 02, 2007 2:39 pm

Re: Owner semi-absentee business

Post by Spirit Rider » Mon Mar 12, 2018 11:07 pm

The allure of a semi-absentee business is generally an illusion. You certainly are not going to find someone selling such a profitable business.

Most businesses you can buy are really a case of buying a job. maybe an 80 - 100 hour/week job. Franchises are typically like this.

If you are serious about starting a business, find a passion that you can grow organically.

SilverGirl
Posts: 28
Joined: Sun Oct 15, 2017 8:55 pm

Re: Owner semi-absentee business

Post by SilverGirl » Mon Mar 12, 2018 11:12 pm

I’m a franchisee and I work 30 hours per week. I make more than I did as a software engineer but it took me several years to get there. There is no way my business would be this successful if I was ‘semi absentee’. I feel like 20 hours per week is the minimum I could get away with to keep things on track.

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Sandtrap
Posts: 5206
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Owner semi-absentee business

Post by Sandtrap » Mon Mar 12, 2018 11:30 pm

Tech wrote:
Mon Mar 12, 2018 7:41 pm
I am looking to gradually change my position from an employee to a business owner.
Are you running a semi-absentee business successfully?

Need help point me into the right direction as to what business to buy, pro and con.
Define "semi absentee" business?
What is your skillset and field as an employee now?

Some random questions to ponder:
You want to "buy" a business as in a business that is already turning a profit. How large a business? With employees? Product or service?
How much money do you have to spend to buy a business?
Can you afford to work 40 hours a week in the existing job and 40 hours a week toward the new business?
Can you afford to work at your existing job and have the new business generate zero income while working the above hours? For how long?
Do you absolutely need days off and vacations and time off, leave, and sick leave? For how long?
Are you willing to do everything and anything that it takes to become a successful entrepreneur and businessman? For how long?
Business "owner" or businessman?
Do you make a better self employed businessman or employee? (big one)
Do you need the comfort of structure and predictability?
Are you willing to be broke and in debt to make a business ultimately succeed?

Or, would the ideal be owning a business while being employed and enjoying the extra income stream with not much more effort?

Retired and tired businessman.
j :D

CurlyDave
Posts: 685
Joined: Thu Jul 28, 2016 11:37 am

Re: Owner semi-absentee business

Post by CurlyDave » Mon Mar 12, 2018 11:44 pm

Tech wrote:
Mon Mar 12, 2018 7:41 pm
...Need help point me into the right direction as to what business to buy, pro and con.
Successful semi-absentee businesses are very, very rare -- mostly the luck of owning something that later becomes popular. And that usually involved a lot of hard work during the incubation days.

Stocks are one of the very best semi-absentee businesses to own.

It is again rare, but some people manage to make quite a bit by taking more risk than the average Boglehead. On the whole, I have done better in individual stocks than in funds, but it is a rough ride and there are no guarantees.

The world is full of sharks and other nasty predators. If you leave a successful business alone to run itself, one of them will come along and take a bite out of it.

DW and I have also done quite well in real estate, not REITs, but brick and mortar rental properties. But there again it is sort of like a hockey game -- you are among a lot of hard, tough competitors. You will take a few blows to the head along the way...

B. Wellington
Posts: 126
Joined: Fri Mar 30, 2012 10:10 am

Re: Owner semi-absentee business

Post by B. Wellington » Tue Mar 13, 2018 6:07 am

CurlyDave wrote:
Mon Mar 12, 2018 11:44 pm
Tech wrote:
Mon Mar 12, 2018 7:41 pm
...Need help point me into the right direction as to what business to buy, pro and con.
Successful semi-absentee businesses are very, very rare -- mostly the luck of owning something that later becomes popular. And that usually involved a lot of hard work during the incubation days.

Stocks are one of the very best semi-absentee businesses to own.


It is again rare, but some people manage to make quite a bit by taking more risk than the average Boglehead. On the whole, I have done better in individual stocks than in funds, but it is a rough ride and there are no guarantees.

The world is full of sharks and other nasty predators. If you leave a successful business alone to run itself, one of them will come along and take a bite out of it.

DW and I have also done quite well in real estate, not REITs, but brick and mortar rental properties. But there again it is sort of like a hockey game -- you are among a lot of hard, tough competitors. You will take a few blows to the head along the way...
^^^+1 Agree.

Full disclosure: My business partners and I took some serious risks along the way. At times working 80 hours a week with little or no family time. My point is one of caution and it is not for everyone.

Today I am a "part-time money manager" (Stocks) I am also a former hockey player. I took a lot of "body blows" along the way... :sharebeer

JoeRetire
Posts: 1485
Joined: Tue Jan 16, 2018 2:44 pm

Re: Owner semi-absentee business

Post by JoeRetire » Tue Mar 13, 2018 8:01 am

Tech wrote:
Mon Mar 12, 2018 7:41 pm
Need help point me into the right direction as to what business to buy, pro and con.
Buy a business in a field in which your significant expertise can allow you to work less than full time. Buy one in a field where you have already been a business owner, so that you have experience running a business. Buy one where the current owner is highly motivated to sell at a discount. Be prepared to spend more than full time at it until you can actually absent yourself.

If you have no relevant prior experience, give up the idea that you can run it in absentia.

totallystudly
Posts: 134
Joined: Sat May 31, 2014 9:02 pm

Re: Owner semi-absentee business

Post by totallystudly » Tue Mar 13, 2018 8:43 am

I think this is a pipe dream and really bad idea. I have bought and sold multiple businesses and the concept of being absent for any amount of time is scary if the business is going to make any kind of money.

If you want a hobby type business or some small scale business, like something that needs less than 50k annually, you could do something semi absentee. Doing vending machines, ATM machines, or an AdSense website from flippa or some sort of automated business are the main things I can think of like this.

I don't see anyone netting more than 100k without substantial work being done

123
Posts: 3612
Joined: Fri Oct 12, 2012 3:55 pm

Re: Owner semi-absentee business

Post by 123 » Tue Mar 13, 2018 8:43 pm

The best owner semi-absentee investment is index funds.
The closest helping hand is at the end of your own arm.

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