Business Psychology
Organizational Psychology, Seller psychology & Buyer Psychology
Does psychology really impact the ownership transition of a business?
The most important aspects associated with transitioning the ownership of a business are founded in the tenets of psychology. Dynamics such as family, self-respect, status, security, memories, happiness, failures, successes, fear, confidence level, the unknown, etc. all have an impact on a person's decision to transition out of or into the ownership of a business.
There are two key sectors of activity related to transitioning the ownership of a business. These sectors are the Psychological Sector and the Strategic Sector. The dynamics found in the psychological sector are relational in nature while the dynamics found in the strategic sector are technical in nature.
Professional advisors too often spend the majority, if not all, of their time focusing on the technical aspects of a business transfer while their clients are generally focused, whether consciously or subconsciously, on relational aspects associated with their decision to transition out of or into the ownership of a business.
People first use linear processes to screen data; they then make selection decisions emotionally. Clients decide with the heart, and rationalize their decision with the brain.
Regardless of what the data says, a person will ultimately make a decision based on how he/she feels.
How does the ICBC help with business psychology?
The ICBC provides business psychology training opportunities for its members on topics such as organizational psychology, buyer psychology and seller psychology which can affect the business transition process.
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