THESE THREE words are the most fundamental concepts of business. In these times of mergers, acquisitions, buying groups, alliances and private equity, many are interested in how one buys, builds and sells. Which matters the most? That depends on where you are in your career.

Here are some ideas.

BUY

Many people love the concept of owning a business, and yet others tremble at the thought. Be careful not to let ambition get in the way of reality. Some people are “programmed” to be business owners, and others are not. Which one are you? That is an important question to ask when contemplating buying a business. One who is risk adverse may not be the ideal business owner.

The second thing to think about is what do you really want? What are you really looking for? Until you can answer those questions confidently, you should cautiously observe.

Third, should you buy an existing business (which has lots of advantages and disadvantages) or build what you want? Many factors, such as construction costs, could contribute to your answer.

Once you have done that “internal research,” easy steps come: educating yourself about the purchase process (and typical timelines), getting your finances organized, finding that business and getting going.

BUILD

This one is the simplest. The build rule is that one should always strive to build one’s businesses, starting at day one and ending on the day of the sale. One of my favorite quotes is, “You are either getting better or you are getting worse,” by Jon Gruden, professional football coach. Each day, you should try to do at least one thing to build your business. This might be a change in workflow, communication, operations, marketing, technology, clinical effectiveness, etc. Make it your new goal!

Building is a psychology, a mindset, if you will. It is easy to sit back and let the business grow slowly, or even not grow. We all do it from time to time. But apathy through a period could ultimately cost more than what you might think. Constant and steady improvement builds a business that will be worth not just your financial investment, but also your investment of time and energy.

SELL

This is the “tricky” one. In my experience, the seller always thinks the business is worth more than the fair market value, usually because of his or her emotional connection with the business. The buyer always thinks it is worth less because of a psychology of buy low (and then build and sell). The value, and, ultimately, the sale price of the business are dependent upon the better negotiator. Of course, it always helps the seller’s point of view if the business is growing at a healthy rate.

The best way to arrive at the right sale price is to think about selling your practice every day after you buy it. This mentality will keep you “lean and mean” and on an upward trajectory until that day you walk away from the business with a smile on our face, money in the bank and a dream about what’s next! OM.