Buying an established business can have many advantages, especially a business that has a solid positive business history. However, established businesses can also have many disadvantages, like bad financial history or poor reputation.

There are steps you can take and questions you should ask before making your decision.

  1. Are you ready to run a business? Business is hard work, and you need to be emotionally and physically ready to get started.
    • Do you have the right family and business support network behind you?
    • Do you have the right skill set?
    • Do you have the financial means that are required to get started?
  2. Why are you going into business?
    • Are you doing it for financial gains, passion, convenience, or some other reason?
    • What are your business vision and goals?
  3. Have you done your research and due diligence?
    • Have you researched the industry, the rules, and regulations?
    • Do you understand the competition?
    • Have you obtained some advice from an industry expert or consultant?
    • Have you had the financials verified and explained?
  4. Why are the owners selling?
    • Is this a retirement, new business opportunity for them, or something else?
    • Do they have to sell? If so, why?
    • Are they under financial pressure?
  5. Has the business been valued correctly?
    • Have you sought expert advice and valuation?
  6. Do you have an in-depth understanding of the products and services?
    • Are they exceptional quality?
    • Are they unique?
    • How do the customers feel about the products and/or services on offer?

There are many things to consider when buying an existing business, and too many times we see businesses fail because the new business owners were not ready to run a business.

If you’re considering buying an existing business or starting a business from scratch, talk to us before you start, so we can help you make the right decision. Make an appointment to speak to us today, you’ll be delighted you did.

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