Karen Man and her husband Elliot Pobjoy did not consider themselves entrepreneurial types until a few years ago. A dentist and a lawyer, respectively, they fit the classic “work your way up while working for someone else” mold.

Then came the pandemic and its new ways of working, especially in Ms. Man’s field of health care. The Ontario couple found themselves reassessing the well-trodden path of conventional employment.

“Karen often found herself stepping beyond her role as an associate dentist, taking on managerial duties to keep the clinics operational, even though she was not an owner,” they jointly pointed out. “We began to question whether she should instead be investing this time in our own clinic.”

Which is exactly what they did when the couple bought a 30-year-old dental clinic in Oakville, Ont. “The decision wasn’t just about owning a business, it was about bringing our vision to life,” Mr. Pobjoy says.

“We wanted to create a warm, family-centric environment where exceptional clinical care is delivered with compassion – thus, SmileGrove Dental was born.”

Their decision to buy an existing business, rather than starting something from the ground up, was a considered one. “Starting from scratch offered creative freedom but came with significant capital costs and the challenges of establishing a patient base, hiring staff and setting up operational systems – all areas where we had limited experience,” the couple says.

“Buying an established business provided us with immediate access to a loyal patient base, a trained and experienced team, and operational processes that had stood the test of time. It reduced the uncertainties associated with starting from zero and allowed us to focus on enhancing and innovating within an existing framework.”

While the narrative around entrepreneurship often revolves around starting something groundbreaking from scratch, buying an existing business, as Ms. Man and Mr. Pobjoy did, is an equally valid – and arguably preferable – way to break into business ownership, experts say.

“Now is an incredibly favourable time to consider buying a business, particularly from retiring owners,” says Iggy Domagalski, a serial entrepreneur who has started, bought or sold more than a dozen businesses, and currently leads industrial service provider Wajax.

Mr. Domagalski cites data from the Canadian Federation of Independent Business (CFIB) that predicts $2-trillion worth of small-business assets will change hands over the next decade. Pair that with figures showing 91 per cent of retiring business owners don’t have a succession plan, and Mr. Domagalski highlights a “significant opportunity” for potential entrepreneurs to be their own bosses by building on risk-taking and years of effort by others.

“Buying from a retiring owner often provides a solid foundation: an established customer base, experienced staff and a track record of operations,” he says. “With careful due diligence and a clear vision, these businesses can thrive under new leadership, benefiting both the buyer and the legacy of the seller.”

It’s advice Lori-Lee Elliott, a tech entrepreneur who founded her first business during her university undergraduate years, endorses with a few key caveats.

“Buying a business from someone retiring can be a great strategy if certain conditions are met. Specifically: if the business is profitable, if it’s in a recession-proof industry, if it doesn’t have ‘key man risk,’ meaning it can survive without the owner, and if it can benefit from a tech injection to make the profit margins bigger. A tech injection could be as simple as a website and a Google Business listing.”

It’s also important to note entrepreneurship, whether starting from scratch or building on an existing business, is not for everyone. “Becoming a business owner or entrepreneur is a career and lifestyle commitment with inherent risk,” says Ms. Elliott, who specifically cautions against buying a business if you have no experience running a company or you’re pouring every last dime into the purchase.

“But everyone has to start somewhere, and there are plenty of ways to get some basic business operator experience, from joining a small business in an operations role – there are plenty of newly acquired businesses looking for operators to run them – to doing something low risk like running an Etsy store.”

For their part, Ms. Man and Mr. Pobjoy approached their dental practice acquisition with “careful planning and due diligence.” That meant knowing exactly what they were looking to buy – location, size, team dynamic, patient demographics, growth potential – and being pro-active about approaching clinics that might be a fit. They met with several possible owners and eventually narrowed it down to the one who would eventually sell to them.

Along with the seller, they agreed to hire a reputable third party to thoroughly evaluate the business, from financial statements to the patient base and the equipment. Their accountants were brought on to ensure the business had a fair evaluation. Once they’d negotiated a price, lawyers came on board to ensure all the paperwork – transfer of assets, staff employment agreements – were handled properly.

“Throughout the process, clear communication and professional guidance were essential,” they say. “Engaging experts such as accountants, lawyers and industry specialists helped us navigate the complexities and avoid potential pitfalls.”

Once they were the new owners, Ms. Man and Mr. Pobjoy encountered the inevitable learning curve. “We brought new ideas and plans, eager to enhance and modernize operations.

However, we quickly learned the value of the existing team’s experience. Our assumptions sometimes clashed with the reality of years of established practices,” Ms. Man says.

“For every successful innovation we introduced, there were moments when our team helped us recognize that some of our ideas might not be as beneficial as we thought. This collaborative dynamic pushed us to listen, adapt, and find a balance between innovation and tradition.”

Despite the growing pains and inevitable speed bumps, both say that it has been a “rewarding” experience. “We’re not just running a business, we’re fostering a community centred around compassionate, high-quality dental care,” they say. “Knowing that we’re contributing positively to people’s lives while growing and learning ourselves brings us immense satisfaction.”

They’d also recommend entrepreneurship, particularly buying an existing business, to others who might find themselves souring on working for someone else.

“This path offers the unique reward of building upon a legacy while making it your own,” they say. “It’s about more than financial success. It’s about personal growth, meaningful relationships, and the joy of seeing your vision come to life through collaboration and dedication.”

Sarah Laing
The Globe and Mail, December 10, 2024