What Is Analysis Paralysis?

How you can miss out on a “great” offering by over analyzing.

Learn why you should take a chance and make a decision.

In business brokerage, we see many potential buyers who have decided that they want to follow their dream of owning their own business. These potential buyers will ask their agent to quickly contact them when a “hot deal” comes up as they are ready to buy.

Amazingly we see six or even nine months pass with dozens of business opportunity introductions made and “hot deal” notices sent to the buyer to find this anxious buyer is stricken with “analysis paralysis”.  This buyer has lost out on the potential “hot deals” to other buyers who have taken advantage of these opportunities.

What is “analysis paralysis?” Simply put, the inability to make a decision. Buyers get so caught up in the review and analysis of so many businesses that the process itself becomes their business, always wondering if the next opportunity will be a better fit or stronger business etc.  Some buyers put an extraordinarily large amount of pressure on themselves to buy the “right” business that they miss out on the right opportunity due to analysis paralysis.  We’ve actually heard buyers say, “Can I do this business every day for the rest of my life”? It is of course a reasonable question however this question can also make every business seem overwhelming and puts a lot of undue stress on the buyer.  Yes of course you want the business buy to be as a good fit as possible however also remember if it is not the right fit you have the opportunity to sell that business and move into other ventures. 

Our advice from many years of experience is for buyers to keep an open mind to different opportunities, you might be surprised about what the right business fit for you actually ends up being.  Also it is important for buyers to obviously do their due diligence however those same buyers must also realize that other business buyers are also looking at the opportunities that come up and those buyers may not be stricken with “analysis paralysis”.  Be ready to jump in when the right business comes along!

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