Interview with entrepreneur Timo Sivonen

Mikko Ruosteenoja, a business broker at Suomen Yrityskaupat Oy, interviewed Timo Sivonen about his first year as an entrepreneur. The interview can be read on Mikko's LinkedIn channel: LinkedIn

What are your main thoughts now about the business deal you closed about a year ago?

- Becoming an entrepreneur was the best decision I've made in my career. I’ve enjoyed the independence and freedom, as well as the responsibility that comes with running a business. I’ve been particularly pleased that things have gone pretty much according to plan. And even though, of course, things don’t always go exactly as you’d like, that aspect has taught me a valuable lesson the hard way.

You completed a business transaction in which the business ID changed. What are your observations regarding this?

- It didn't really have much of an impact on the business. Mostly just minor practical details regarding invoicing and contracts, but the company's name, reputation, and operations remained the same, which was what mattered most to me.

What are your thoughts on buying an existing business versus starting one from scratch?

- For me, it was the best path to entrepreneurship. With an established business, you can already see whether the business idea works. When starting from scratch, the risks are greater, because even if your idea seems good, it hasn’t been tested in practice yet.

What advice would you give to those considering buying an established business?

- If you're interested in entrepreneurship, you should start researching the market. For years, I kept an eye on what kinds of businesses were available. And when you find one that feels like the right fit, I recommend first reviewing the company's financials and meeting with the owner.

How did you manage to secure financing for the store?

- In my opinion, the financing process went smoothly. The biggest factor that made things easier was that the business broker had prepared the materials very thoroughly, which made the company’s financial situation—including its cash flows—clear to both me and the financiers.

I also used the services of corporate finance professionals (Momentum Helsinki), which sped up the process because we were able to find the right contacts right away. Based on the calculations and valuation prepared by the business broker, it was also fairly easy for us to agree on a purchase price with the seller.

What is the current status of the business you purchased?

- Things are going well. We’ve retained our existing client base and have also gained new clients. Competition in the interpreting and translation industry is pretty fierce, but we’ve managed to succeed thanks to our wide range of languages, excellent customer service, and, above all, our skilled interpreters and translators.

You made the switch from a large financial management corporation to becoming an entrepreneur—what are your thoughts on that now?

- The dynamics and work ethic here are completely different from those in big corporations. You're responsible for everything yourself, but on the other hand, your successes give you a sense of fulfillment in a whole new way.

Do you encourage owners and buyers to complete business transactions, and if so, how?

- At its best, buying a business is a great way to start out as an entrepreneur. The seller should make an effort to find a reliable broker who thoroughly examines the company’s financials. This benefits both the seller and the buyer, as it makes it easy to understand the company’s operations and speeds up the transaction by eliminating unnecessary delays.