Buying a business is very tricky and you really do need to speak to people who can help you along the way. Making an error may costs you an irreversible situation. I certanily don’t want to discourage you from buying, but, you must be aware that you can’t go into it with glazed eyes. Obviously, as a business coach I want more and more people experiencing owning a business, however, what I see out there in many cases are people running businesses with qualification to run one less than it takes to train for Responsible Serving of Alcohol.
Some things to consider:
- Understand what the business provides very clearly
- Make sure you are not buying a job in the long term
- Understand that nobody in the business will be more motivated than you
- If you want great workers, you will need to be a great boss. Why else would they work for you?
- Expect some people to leave once you buy it
- What are the costs of setting it up yourself instead and the cost and time of building it up to the same level? (this is commonly grossly underestimated, so, buying is usually a better idea)
- Do you stick at things long enough? This is not a job that you simply resign from
- Are the products and services likely to be relevant in the mid-to-long term?
- Are your business financial skills up to scratch? This one catches people out a lot
- Do you consider yourself a great leader, if the buck stops with you?
- Is a franchise more appropriate for you so that you can take advantage of the systems and support?
- Has the business got multiple sites?
- Can you trust people working remotely?
- Are you good at delegating?
- What is your temper when things don’t go your way?
- Do you need assistance in evaluating a business’ worth?
- How successful have you been in previous jobs or businesses?
- Are you open to working with a business coach to enssure you maximise your potential and minimise the pitfals?
- Are you considering business partnerships? (a more detailed blog on that will come in the future)
- How much reserve capital should you put aside at the beginning?
- Will you borrow funds or use cash reserves?
- Is it a good idea to work with spouses, family or friends?
- Do you understand vendor finance?
- Would you require a lock in for the seller’s services?
- Best company structure
- Do you know your business and private goals?
- Does the business fit in with your 10 year goals?
- Are any goals written on paper or into a computer?
- How IT savvy are you?
- Do you understand social media’s role in today’s business?
- How adaptable are you to new ideas and market movements, either product or marketing wise?
- How to approach a business broker to assist you finding the right business?
Believe it or not, I could go on.
Anyway, the point I’m making is, if you want to run a business successfully, surround yourself with experts and let them guide you along the way. I’ve worked with novice and extremely experienced and successful business owners and they wouldn’t have it any other way.
