So now its time to take that big plunge and be your own boss. Where will I start? What do I look for? And for that matter what business will I buy? Will I relocate? Can I get finance? Who do I go to for the right advise?
These are just a few of the concerns when you decide on buying a business and believe me its not an easy road ahead, but with the right advise and the right business for you there are rewards unlimited to help you on the way to building a bank and a good quality of life. This article will help you all the way.
Important Points when Buying a Business
Every day I receive emails from purchasers and business owners needing assistance in selling or buying. I use my many years of experience in business sales and running a chain of shops to assist them in the right decision for them. It’s a bit like a psychologist really. Its just not a sale for me, it’s a dedication.
The first thing to remember is you must get it right the first time because the business you buy you should be in for at least 4 to 7 years. I advise my vendors and purchasers to give yourself a 4 year plan. You may love the business so much you want to stay longer but the majority of people are burnt out after 4 years and are looking for a change, especially if it’s a café or restaurant, and if you feel it’s wearing you down the business will suffer if you don’t sell then and of course you won’t achieve a good price if the business is run down.
Finding a Business!
I find in my business newspaper advertising brings me very little sales. My statistics tell me a genuine purchaser will go to the search engines to find a broker and scan the listings. We do use the papers to get our website name out there and this works to our advantage far more than a long expensive add that lasts one day. Our site http://www.bestbusinessbuyes.com.au is the most valuable tool we have and our journal Best Business Buys gives you months of good reading to give a purchaser information on how to buy and where. So scan the net under search engines business brokers, if you can not find a business on our site there are other brokers listed that may be of assistance to you. Or better still tell us what you want and we will go find it for you!
Anywhere in Australia.
Problems with Newspaper Adverts
You will often see a private add in the paper and you may think this is great, we will cut out the agent and get the business cheaper.
DON’T BE FOOLED!
Now I am not saying all private adds are no good, some may work out, but in my experience those people who try to do it themselves do it because they have either been burnt by an agent not servicing their business, so they think they will do it alone, or the profit is low in the business and they need a quick sale, or of course the common one the agents fee offends the owner and he thinks he can do it better himself. Or he may think the advertising costs to sell his business is less if he dose it himself.
When you are dealing with a private sale you feel uncomfortable saying what you really think, and uncomfortable asking certain questions so as not to offend the owner. With a broker you can be open and tell us all your concerns. We will work them out with the owner and rectify them if possible. We as the agents should now the business as well as the owners, that’s our job. I look at a business when I list it as my own and sell it as if it was my own. A good broker should be there to help you with that sale to the end. Too many owners who try to sell themselves end up in conflict with their buyers.
And after a few months of failures TRYING to qualify buyers he finds out it’s not that easy & worst of it he has given out his figures all over town for all the clients to see, so the business you are looking at has been exposed to untold people who may be using that information to start down the road.