The Realities of Small Business Ownership and Why a Business Broker Is Essential
Insights from FCBB Agent Ardeshir Vosooghi
Owning a small business is one of the most rewarding paths you can take. It gives you control, purpose, and the potential for significant financial gain. But it also comes with high stakes, constant pressure, and real risk, especially if you're buying, expanding, or trying to exit.
This is where a professional business broker adds serious value. Whether you’re entering or exiting the market, having a broker who understands the nuances of deals, valuations, negotiations, and buyer behavior is not just helpful, it’s a competitive advantage.
The Benefits and Pitfalls of Small Business Ownership
The good news: According to the Pew Research Center, there are more than 33 million small businesses in the U.S., and they employ about 62 million people. roughly 46% of the private workforce. Entrepreneurship is thriving, with over 5 million business applications filed in 2023 alone.
But here’s the reality check:
20% of small businesses fail in their first year.
Only about 35% last longer than 10 years.
The top reasons for failure? Poor cash flow (82%), lack of market demand (42%), and flawed business models (17%).
Source: Pew Research, Forbes Small Business Statistics)
This is why proper planning and knowing when to seek guidance—is essential.
Why Business Brokers Matter (A Lot)
If you're planning to buy, grow, or sell a business, a broker acts as your advisor, dealmaker, and strategist.
Owning a small business is one of the most rewarding paths you can take. It gives you control, purpose, and the potential for significant financial gain. But it also comes with high stakes, constant pressure, and real risk, especially if you're buying, expanding, or trying to exit.
This is where a professional business broker adds serious value. Whether you’re entering or exiting the market, having a broker who understands the nuances of deals, valuations, negotiations, and buyer behavior is not just helpful, it’s a competitive advantage.
Buying a Business
Getting into the game is often smarter through acquisition than a start-from-scratch approach. A broker helps:
- Match you with businesses that align with your skills and goals
- Conduct due diligence and financial analysis
- Navigate deal terms and negotiations
Growing or Expanding
Growth often means strategic acquisitions. A broker can:
- Identify ideal acquisition targets
- Handle valuation comparisons and synergy assessments
- Coordinate with lenders and manage deal flow
Bonus: Did you know you can qualify for 100% SBA financing to expand your business?
Ask me how I’ll walk you through it.
Exiting Your Business
Most owners don’t think about exiting until it’s too late. But early planning can significantly increase your business’s value. A broker can:
- Prepare your business for sale
- Provide a fair market valuation
- Manage the confidential sale process from start to finish
An IBBA survey found that 70% of owners with businesses valued between $500K–$1M have no exit plan. That’s a problem. A broker helps solve it.
Trends to Watch: 2025 and Beyond
According to the IBBA, the California Association of Business Brokers, and national research, here are the trends shaping the future:
- Optimism is up: 80% of owners are planning growth in 2025.
- Hiring is on the rise: 47% plan to expand their workforce.
- AI is going mainstream: 53% of businesses use tools like chatbots and automation.
- Cybersecurity is critical: As digital integration increases, so do cyber threats.
- E-commerce continues to grow: Expected to make up over 22% of all retail sales by 2027.
In short, the landscape is competitive and fast-moving and you need to stay ahead.
Final Thoughts
Owning a business is never just about profits. It’s about people, timing, strategy, and knowing when to lean on experts. As a business broker, I help owners and buyers like you make informed decisions, minimize risk, and maximize value, no matter which stage you’re in.
Thinking about your next move? Whether you're buying, growing, or preparing your exit, let's talk. I'll help you get it right.
