Tips for Buyers Looking to Buy a Business
Whether you are a first time business buyer or have acquired a business before, care and consideration need to be undertaken and you should consider the following as a starting point.
Owning your own business is a dream for many to achieve self employment, grow their asset and reach financial independence and hopefully sell their business asset for a comfortable retirement. However, many underestimate the time needed to be spent "working within a business". In most cases, hours are considerably longer than being a "salaried employee", it may be difficult to take leave and there are added pressures and stress from managing staff and back office financials. When you have your foot on the pedal of a business, you can't just take it off or the business will suffer. What you get out of a business is directly linked in most cases to what you put in.
* Do I have the specific skills and experience to run the business I am interested in?
* Does my family situation allow me to undertake the work and hours required to run a business?
* Have you managed staff or been in charge of a workforce?
* Do you have the necessary support in place to see that you abide by commerical legislation by having a lawyer, accountant, business advisor, book keeper in place?
* Do you have a plan in case you are ill or injured and cannot attend work?
* Most importantly, if you require finance to buy a business, have you spoken to a financial insitition or finance broker and obtained pre approval of finance to pursue a particular type of business? Many business owners and Business Brokers, will vet potential buyers for their financial capabilities very early in the screening process. If you have pre approved finance, it is much easier to engage with a Broker and vendor. If you don't have proven ready access to finance, some vendors may choose not to engage with you regarding their business for sale.
These are just an example of a range of topics you should consider when looking or considering to purchase a business.
Contact Brian Hill on 0438 633 607 if you would like to discuss selling your business or buying a business in Newcastle, The Hunter or on the NSW Mid North Coast.
Call - 0438 633 607