Buying a business can be a good option if you feel you want to run a business but you're not entirely sure what you want to do, or if you don't have an idea for a new product. It's a great way to be your own boss without the gamble and hassle of setting up a new business - but there are some things to think about before you go making any hasty decisions. This guide introduces you to buying your own business by looking at:
If you choose wisely, the business you buy will have everything in place for success: a proven track record, business and marketing plans, employees, an established market, a customer base, a reliable income (and so a salary for you), a good reputation, and a network of suppliers and contacts. This not only makes your life as a business owner easier, it helps secure finance - banks lend up to 70% for business acquisitions, which is a lot more than they risk on start-ups.
Initial investment tends to be more expensive than starting up, and fees for accountants, solicitors and surveyors need to be taken into account. You may well then have to invest more on top of the purchase price to make the business the success you want it to be. Bear in mind that you may be met with animosity from staff and customers if you try to change too much, and you may feel restricted by taking on someone else's plans rather than forming your own afresh.
The first and most crucial thing you need to know is why the current owner is selling up. Be rigorous in your questioning and get a good solicitor and surveyor to check things out - you don't want to invest in a failing business. Keep a very close eye on your budget - be conservative about what you think you can afford as you'll almost certainly have to put in more money after purchase. Think about relationships with existing suppliers and staff - can you be sure you will be able to renew contracts? How will you keep the business' network happy if you don't?
To help you along, we've created Smarta Buisiness Builder the one place where you can find all the tools you need to start developing your business.
To help you on your business journey, we've created Smarta Business Builder, the complete online tools package for growing your business. Website Builder, Business Plans, Accounting Software, Legal Documents and Email - all in one place - from just £20 per month with no contract! Try it out today.