Small business owners speak about difficulties in selling

The owners of a popular pizza store in Burnie put a for sale sign up in their store more than a year ago. That sign is still hanging.

Mamma Rosa’s Pizza in Burnie has been on the market for more than a year.

The Blacklow family have been trying to sell their business for more than a year.

Bob and Sandra Blacklow want to retire and have put Mamma Rosa’s Pizza in Burnie on the market.

However, they have not been able to find a buyer, which Mr Blacklow partially attributes to the current economic climate.

“That’s really all I can put it down to,” he said.

“The overall situation in Burnie is that there are a lot of vacant shops, similar to Devonport and Launceston.

“A lot of the smaller shops are vacant, so I guess that doesn’t put a good look on things.

“But we’ve been through this two or three times before in the 40 years we’ve been in that business – so you just live through that, and things change around the corner, and away you go again.”

Mamma Rosa's Pizza owner Sandra Blacklow. Picture: Simon McGuire.

Mr Blacklow said a number of people had inquired about the business, with some even visiting the premises.

“And to be honest, some people just aren’t the right type of people for the business.

“My solicitor says ‘it’s none of your business; if they fail, they fail’. I said ‘we have to live here.’

“I’d like to pass it on to someone who I think could make a success of it.”

Mr Blacklow said it was a sign of the times.

“Burnie isn’t as buoyant as a couple of years ago.

“People are a bit more cautious and we just can’t find anyone with a bit of willpower and tenacity to have a go.

“I’m losing a bit of confidence because it’s been a year and a half now.”

Dr Maria Yanotti, housing economist at the University of Tasmania. Picture: Supplied/Ben Dilger

Maria Yanotti, a Senior Lecturer in Economics at the University of Tasmania, said it was tough for businesses hoping to sell.

“In the past year, we have been in an economic environment of no growth or slow growth,” Dr Yanotti said.

“So that means that household spending hasn’t been growing around an environment of rising cost of living; business investment hasn’t been growing either.

“It has been a very slow market for people to take the risk of starting a new business or buying a new business.”

However, Dr Yanotti said there was some hope for the economy.

“We recently had the Reserve Bank announcing that inflation is hitting targets, and they have dropped the interest rates.

“And there are some suggestions for this year of some slow pick-up in consumer spending and increasing business investment.

“But, of course, there is still much uncertainty.”

For those selling a business, Dr Yanotti said owners must be willing to lower their price if there is not enough interest.

“But at the end of the day, it has to be a good business for someone else to take over.”

Originally published as Small business owners speak about difficulties in selling