24 Feb 2025
For buyers dreaming of their next acquisition and sellers planning their escape route (er, strategic exit), here's a truth about business deals that's harder to ignore than your accountant's quarterly reminders:
Growth shouldn't be a requirement - it should be a choice.
While many business brokers push growth stories like they're selling miracle solutions ("Just add marketing and watch it grow!"), the smartest buyers and sellers know better.
After all, if business growth was as simple as following a formula, we'd all be sipping cocktails on our private islands by now.
The Real Cost of Getting Bigger
For sellers: If you've built a business that runs smoother than a well-oiled machine at its current size, don't let anyone tell you that's a weakness.
That simple website and steady customer base you've maintained?
They're not signs of complacency - they're proof you understand something many don't: sometimes 'enough' is better than 'more.'
For buyers: Before you dismiss a "small" business or start planning changes faster than a teenager changes social media profiles, understand what growth really costs.
Marketing these days takes $15-20 out of every $100 a business makes. For a business making $2 million a year, that's up to $400,000 in new expenses.
Suddenly that seller's "old school" approach doesn't look so dated, does it?
Money management becomes your new best friend - think of it as adopting a hungry teenager who's just discovered both gym memberships and food delivery apps.
That exciting new big customer might mean an extra million in sales, but can you wait four months to get paid?
Meanwhile, your bills arrive with the predictability of a taxi in a rainstorm.
The Hidden Headaches
Growth isn't just expensive in dollars – it costs time, that precious commodity you can't buy back with all those profits you're chasing.
Managing more people isn't just about bigger pay packets; it's about becoming part therapist, part referee, and part mind reader.
It's like herding cats, if the cats all had email addresses and strong opinions about the office coffee.
When Growth Becomes Necessary
Here are four situations where growth isn't optional (think of these as the four horsemen of the forced-growth apocalypse):
Rising Loan Payments: When interest rates climb faster than your stress levels.
Competitive Pressure: Because staying the same size in a growing market is like bringing a calculator to a supercomputer convention.
Investment Requirements: Outside investors usually demand growth with the patience of a hungry toddler.
High Purchase Prices: When you've paid premium prices, you can't afford economy class returns.
What Makes a Business Truly Valuable
For a deal to work for both parties, look for these three elements that make growth truly optional:
Current Profitability: The business should already make good money, not just promise future riches. It's like buying a house - would you rather have one that's comfortable to live in now, or one that's "going to be amazing" after three years of renovations?
Manageable Obligations: Low fixed costs mean freedom to choose your path. Think of it as the difference between driving a paid-off car and having a luxury lease payment breathing down your neck every month.
Growth Potential Without Pressure: The best businesses can grow if desired but don't require it for survival. It's like having a spare bedroom - nice to have when guests visit, but you're not forced to rent it out to make the mortgage.
The Beauty of Choice
Sellers: If you've built a stable, profitable business that doesn't depend on constant growth, you've created something more valuable than you might realise.
Don't let anyone convince you that "lifestyle business" is a dirty phrase.
Your focus on sustainability might be your strongest selling point - after all, nobody complains about a car that starts every morning without drama.
Buyers: When evaluating businesses, remember that inheriting a well-oiled machine at its current size might be worth more than a larger operation that needs constant tinkering.
It's like choosing between a reliable family restaurant and a trendy new cafe that's still "figuring things out."
Smart Deal-Making
The best deals happen when both sides understand the value of choice.
For sellers, it means finding buyers who appreciate the steady foundation you've built rather than those promising to "revolutionise" everything faster than a tech startup burns through venture capital.
For buyers, it means recognising that sometimes the best opportunities aren't the ones promising explosive growth, but rather those offering the freedom to grow on your own terms.
After all, would you rather have a business that lets you sleep at night, or one that has you checking your phone at 3am?
The Real Freedom
Think of it this way: A business that gives you choices is like a Swiss Army knife - useful in multiple situations but not forcing you to use every tool at once.
A business that demands constant growth is more like a runaway treadmill - exciting until you realise you can't slow down without falling off.
Here's what the savviest deal-makers know: The real value isn't in forced growth or stagnation - it's in having the freedom to choose your path.
Whether that means expanding when opportunities arise, maintaining steady profits, or even scaling back during certain seasons, the choice should be yours to make.
The next time you're in deal discussions, try this simple test: Ask about the business's potential to maintain its current size profitably.
If suggesting stability causes more panic than a printer jam five minutes before a client meeting, you might want to reconsider the deal.
After all, in the world of business ownership, true success isn't measured by how fast you can grow - it's measured by how well you can sleep at night with the decisions you've made.
Want to find your next business? Search all the businesses currently for sale in Australia here.