Starting a business can be both exciting and frightening. If you have the right mindset then it can be a challenge that you’re happy to take up. However, if you’re more risk-averse or don’t have an entrepreneurial spirit, starting your own business can seem like an impossible dream. You might want to consider other options, such as buying an established business, instead.
Starting a business is a huge undertaking that can dominate your life for years. Startups can take up all your time, money, and energy in the early stages. You need to be focused, determined, and ready to turn your hand to anything. You also need to be ready to take some big risks. Many businesses struggle or even fail in the first few years, before they have established a customer base and started turning a real profit.
If you’re thinking about starting a business, then it’s a good idea to consider whether this is the right choice for you. You should think about your mindset and the risks of starting a new business:
The right attitude is essential for starting your own business, but you will also need the right skills and knowledge to keep it running. When you dream of starting a business, you might focus on your unique product ideas or the superb service you want to provide for customers. However, when you actually start a business you might need to write your own business plan, apply for business loans or other financing, design a marketing strategy, manage your own books, and ensure your business adheres to all the relevant tax and legal regulations. As the business grows, it may be possible to outsource some of these tasks or bring someone into the business to handle them for you. Running an established business can be a very different experience to starting a new business.
If you want to run your own business then it’s important to understand what this will entail and to know how you’ll manage all your responsibilities. You might want to think about the following points:
After thinking about what it takes to start and run a business, you should have a better idea of whether this is the right route for you. You might feel like a true entrepreneur who is ready to dedicate yourself to a startup and take on all the risks this involves. If so, then turning your idea into a new business could be the right option for you. On the other end of the scale, you might decide that you’re not ready yet or that you’d rather remain an employee than take on all the responsibilities of running a business.
However, many people will find that they are somewhere in between these two extremes. You might still want to run your own business, but be put off by the risks of starting one from scratch. If this is how you feel, then it may be best to take an alternative route to business ownership that will let you skip over the difficult startup years.
If you decide that starting a new business isn’t right for you, it doesn’t mean that you have to give up on being a business owner. Another option is to buy an existing business rather than starting one yourself. You will still need the skills and knowledge to run your own business, but you won’t have to struggle through the hardest years as a startup. You can choose an established business that already has a stable customer base, contacts with reliable suppliers, and opportunities for growth. If the business comes with existing employees, you will also benefit from their skills and experience. You won’t need to do everything yourself.
Buying an existing business can be a good option if you feel ready to manage your own business, but you want to avoid the risks and challenges of a startup. If you’re interested in buying a business then the first step will be to get in touch with your local Business Partnership broker. We can advise you on the process and help you find the best business opportunities in your area or beyond.
Contact us here to speak to your nearest broker or for more information about purchasing a business.
Buying a business for the first time can be one of the biggest decisions you will ever make. Finding the right business is essential, but it can be difficult to know which factors you need to consider. Getting expert advice from an experienced broker is a must, but in the meantime, here are some of the most important factors for you to consider.
1. What is Your Goal?
Being clear about your reasons for becoming a business owner will help you to find a business that will achieve your goals. You might be looking for an established business that will provide a steady income, a growing business that needs an ambitious new owner to unleash its potential, or an exciting challenge. You need to find a business that will fit in with your plans.
Putting time into this element will help in assessing the businesses you look at later on. So be thorough and honest with yourself about what you want to do or you may end up buying something you hate.
2. Is the Business Doing Well?
New owners can sometimes rescue a business that needs investment or restructuring, but in most cases, it is best to buy a business that is doing well. One of the main reasons to buy an existing business rather than starting one is that it will come with an established customer base and brand. Ideally, it will already be profitable when you take over.
The seller should provide detailed financial information and forecasts to help you make your decision. You will need an unbiased valuation of the business and if you’re less experienced in the sector or in reading financial records, get expert advice.
3. Why is the Business for Sale?
Owners who are selling up to retire, move away, take on a new challenge, or hand the business over to someone better placed to help it grow, will be happy to tell you about their reasons. If the current owner is reluctant to discuss why they’re selling up, this could ring some alarm bells. The business could be facing some hidden problems that it would be best to avoid. Dig a little deeper.
4. Will There Be Any Extra Costs?
Make sure that you know how much you’ll need to spend to keep the business running. You don’t want to encounter any unexpected costs such as needing to replace old equipment or write off obsolete stock after you’ve invested in a business. Looking at cashflow to work out any seasonality is a good idea (see our previous article here about seasonal businesses).
These things are just part of everyday business. The key is to know about them so you can adjust for them when making your offer. If you’re landed with an unexpected expense after the sale, your due diligence into the business hasn’t been robust enough.
5. Is this Business the Right Fit for You?
Businesses need the right person to run them in order to succeed. As well as evaluating the business, you should think about your own experiences and interests when considering the type of business you’ll buy. Is this a brand that suits your style? Are you the right person to take the business to the next level? Can you build a good relationship with any key employees who’ll be staying on? What skills and experience of the business owner need replacing when they sell?
This was never more evident than after the 2008/9 recession when coffee shops became hugely popular. The people buying coffee shops weren’t always good businesspeople but had redundancy packages to invest. They liked to frequent coffee shops, knew what they liked, but were clueless about the work which went into running one. Consequently, those people struggled.
The seller will also want to be convinced that they are handing their business over to someone who will continue their efforts, especially if they are selling a family business. The skills and energy you bring to the business could all help you to seal the deal.
6. See what’s available
Before you’re serious about buying, get familiar with what’s on the market already. You can sign up for our own monthly newsletter of current sales but also get yourself registered on www.businessesforsale.com or on www.daltonsbusiness.com. These are the two largest sales sites covering the UK and a great source of information. Even if businesses are in totally the wrong location for you, knowing their turnover, profitability and asking price all feed into your knowledge.
If you’re ready to start looking for a business to buy then the next step will be to seek advice from an expert. Business Partnership has business brokers across the country who have handled sales and acquisitions in every sector of the market. We can help you to find a business that matches your needs and provide unbiased advice on valuations, the local market, and every aspect of the process. Our aim is to connect the perfect buyer with their dream business, so that both you and the seller will be satisfied with the results. Speak to your nearest Regional Partner now.
We have all seen the headlines, shops closing, major retailers scaling back or closing altogether, and when you might be considering going into business as a high street shop or café it would not be surprising if you were put off by this trend. However, look closer and it is not all doom and gloom for the smaller independent traders.
The headline “High street shops closed at a rate of around 14 a day in the first half of the year, while openings were down a third” actually has only considered businesses with 5 or more branches. A lot of the large, long-established retailers who have hit hard times seem to have been bitten by overexpansion and perhaps a desire to be represented in prestige locations with the kind of rent they attract.
But beneath all this, you will find a thriving independent sector who in some cases are benefitting from the closure of the larger businesses local to them.
The smaller independent traders often keep a much closer eye on what is coming in and going out, work a lot closer with their customers to understand their wants and needs, and often have very close, good working relationships with their landlord and as a result may pay a fair rent for the property they occupy.
Of course, it is not all quite as simple as that, there is a lot more involved in why businesses are closing down, and not all independent traders have it quite as good as alluded to here. However, whilst we may not be able to help the likes of Debenhams to turn their fortunes around, a Business Broker such as Business Partnership, whilst usually working for the seller of a business, will be able to help a buyer succeed in business.
It is generally accepted that buying an existing business is lower risk than starting from scratch. A lot of the hard work will have been done for you and there will be historic data to help you reduce the risk, and to “Learn from someone else’s mistakes”.
If you are considering buying a business a conversation with a good business broker would be a good place to start. They can help in locating a business, guide you through the purchase process and put you in touch with professionals such as solicitors and accountants.
All this can save you time and money as by getting it right in the initial stages of the purchase process will help to avoid protracted discussions later on.
Business Partnership have hundreds of businesses for sale and more are being added daily. Find your local partner on our website and get in touch, letting them know what you are looking for and you may be surprised at the opportunities that they send your way.
Care homes are becoming an increasing necessity and will continue to be into the future. As the population ages, the demand for care homes grows. Investing in a business that provides care for this ageing population is going to reap rewards in the future as long as you find the right business to invest in.
Read on to find out why a care home business should be an investment option for you.
The population in the UK has a much higher life expectancy than in the past. This means that there are more people that will be looking for beds in care homes. In conjunction with this, there have also been significant cuts to social care spending
Those who are able to are supplementing their care options with personal savings, if not paying completely for private care options. Care options have become increasingly privatised over the recent decade which has extended the options for the private sector.
Of course, some of your residents may be funded by the local authority. When you are looking for a business to buy, you will need to consider how many residents this will apply to. How many other private residents are there in your care home?
The staff that you have working for you are a vital part of any business, but this is particularly true however for a care home. Buying an existing care home will mean that you will already have employees that know how the business runs. Before you decide on which business to buy, ensure that they have the training to give the exemplary care to your residents that is needed to run a successful care home.
You do not need to have a qualification to work in the care industry, but you do need to have background checks to make sure you don’t have a criminal record. And, of course, you have to have the correct disposition. Giving your staff training will also improve their service and the reputation of your care home. Investing in your employees will pay great dividends in this industry.
The premises of your care home needs to be in tip-top shape. Cleanliness is key as is safety. It can be costly to renovate a property in order to make it suitable for the purpose of a care home.
There are strict regulations when it comes to care homes. If you are hoping to change the nature of a property to be suited to care homes, be sure that it meets requirements such as minimum floor space, ceiling heights and adequate access. Care homes that are most in-demand are also easily accessed from towns or cities.
However, if you are buying an existing business, you will need to do your due diligence and ensure that you don’t pay for a business that will need a lot of capital to make the necessary upgrades because it has become run down over the years.
It is usually wise to buy the property freehold, or you are at the mercy of the landlord which can make running your business problematic.
While there are advantages to both, buying a care home will mean that you will be able to hit the ground running. Your due diligence will be able to assess what changes will need to be made to the business before you take it over but then you should be able to get going on a business that has the necessary components in place.
Make sure that you spend time finding the right business that has the potential for expansion so that you will be able to increase your profits. It is great to find a business that has a lot of its beds occupied but remember that a business that has no empty beds has less room for you to expand through better marketing and services.
By Matthew Hernon is an Account Manager at Dynamis looking after Business Transfer Agents and Franchises across BusinessesForSale.com and FranchiseSales.com.
If you’re thinking about buying your dream business, it’s very easy to drift away on the novelty and excitement of the whole experience. So, if you’re not careful, there’s a chance you could end up faced with the cold reality of running a business without any clear idea of how you got there, or where you’re actually going.
The best advice is to reverse your thought process: Before you can know what business will be right for you, you need to be sure of what it is that you want to achieve.
Once you’ve decided that, you’ll be in a much better place to know what eventual success might look like, and whether or not it can be achieved, for example, by opening a restaurant. So here’s a checklist of things you need to work through:
Be realistic
It’s OK to have a dream. But you need to interact with all sorts of other people to realise that dream. Essentially, you’ll need to speak their language. That means being practical, knowing what you want to get done and having a plan to achieve it.
Your dream is unlikely to succeed if you’re only prepared to discuss it with fellow dreamers. So, if you want to set the right tone to convince others to believe in you, keep your business aims focused and attainable.
Think of the short and long term
Most business planning is better at addressing the launch of a business. Some plans even have a fairly realistic path to the break-even point where you hope to move into profit. But the weakest part of any business plan is often the link between short and longer term goals.
There is, or there should be, a clear connection between these two concepts: e.g. If we do this now, we should be able to achieve this in five years – and here’s the timeline showing the steps it will take. This will clarify your thinking and keep you on track during those times when it’s not so easy to think clearly.
How much money do you want to make?
Are you looking to just match your current take-home salary? Or do you have big plans to make far more? Whatever profits you may be looking for, you need to know they are realistically achievable within your business sector. And if the returns you are looking for are very high, that usually means you must be prepared to put in the personal effort required to pull in that amount of cash.
Rather than plucking a figure from the sky, it’s often more practical to set yourself a target – say managing to exceed your current monthly income by a margin of 25%. That’s easier to achieve than something further away, and when the time is right you can reset your goal to get to another new income level.
What do you want your day to day to look like?
Before launching into any kind of business, give some thought to how you want to be spending your business day. Will you be happy to commute over a long distance, or perhaps even relocate? You should also decide whether you are happy to work mostly in an office, or whether you maybe want to be involved in lots of business travel.
Entrepreneurs are also renowned for spending countless out-of-business hours to keep their business in the best possible shape. So are you happy to make the personal sacrifices this may entail to achieve your goals?
What type of work do you want to be doing?
When deciding your goals for the type of work you want, you should determine whether you prefer working indoors or out of doors. And in terms of working methods, would you want to use computers and other technology tools, or is the phone the best business tool for your method of operating? Other decisions about working options include more specific things such as whether your work might involve children or animals etc.
Quantifiable and specific goals
Smart business goals are always well-targeted and clearly defined. ‘Open five customer accounts in the West Country spending £1,000 per annum’ is far clearer than simply saying ‘We need more business’. That kind of focus harnesses energies and starts people thinking of outcomes rather than just straining hard but in a fairly aimless scatter-gun fashion.
Relevant goals
All your business-oriented goals should be purposeful. Therefore most will concern economic outcomes which will advance your purely business aims, or personal outcomes which take you further towards your own lifestyle ambitions. And in addition, although retirement may seem a distant way off, it is nevertheless an important long-term goal which can only be properly realised through effective planning.
Defining your goals in advance will not only put you in a better place to decide what business to buy, it will also serve as an efficient tool to guide your efforts when managing your business. And once you have goals, you also have a way of measuring how much closer you are getting to achieving those dreams you had before your business journey began.
By Matthew Hernon is an Account Manager at Dynamis looking after Business Transfer Agents and Franchises across BusinessesForSale.com and FranchiseSales.com.
Often would-be entrepreneurs are very clear where their future lies. However, sometimes, the urge to buy a business is strong but you may want to spend a little time reviewing your options before deciding which sector to choose.
Following your hobbies and passions has obvious appeal, but if you’re hoping to be successful don’t forget to look into what’s trending now as well as what’s forecast to trend in the future.
Here are some fields you may want to consider:
A tech future
Undoubtedly this is a sector where fast development is guaranteed, and rapid growth is the norm. The tech industry has reinvented what is possible in both new and traditional fields.
Until recently, nothing seemed more resistant to change than the insurance sector. However, this industry’s mindset has been literally forced to change because of gross customer dissatisfaction – especially within the business and commercial insurance community.
As a result, small operators with insurance expertise – able to offer 21st-century tech and personalised customer-service – now have a golden opportunity to refashion insurance services to meet the real needs of today’s customers.
Elsewhere, Lucy Wayment notes that developments in the voice technology industry have revolutionised the way our default mode of communication can now be employed.
While tech giants like Amazon and Google have been busy developing technology and infrastructure and combining it with artificial intelligence, the time has come for those tech-savvy entrepreneurs with vision (and coding skills) to show what they can do in a myriad of new and existing ways.
Health foods
Health is clearly of interest all of us, and the link between healthy eating and wellness sustain an industry which constantly throws up new niche opportunities.
The Your Company Formations blog identifies 2018 as a great year to bring sugar-free products to the food and drink market.
Recent initiatives have flagged up the urgent need for healthy alternatives for children, which is just one example of this trend.
In addition, many adults are now looking to the health-giving benefits of a whole new generation of superfoods.
Blue algae – also known as spirulina – is a new trending superfood offering 60% protein and set to become a significant product in the health market over the coming months.
Its ‘Instagram-friendly’ blue colouring is bound to be a promotional advantage. The health-conscious will soon be demanding regular supplies of algae-flavoured snack bars and smoothies.
Subscriptions and delivery services
It’s not just health food connoisseurs who want everything on demand.
Our society is becoming accustomed to convenience to such an extent that the list of what you can’t order via app gets shorter by the day.
Home convenience is the driver for a whole range of monthly subscription boxes, bringing consumer items such as pet foods and treats, a whole variety of food and drink items, beauty creams, aromatic candles and much more.
From an entrepreneur’s perspective, it’s a matter of selecting a product or service which offers a touch of luxury that can be easily supplied to a mass market.
Late-night street foods and fast food and drink of all kinds are another markets presenting many business opportunities.
Traditionally, this has meant greasy fried foods. And although these still have a place today, consumers are often looking for something healthier, more exotic, or perhaps something which meets a particular need – such as Muslim halal foods.
There is also a whole range of beauty and grooming products and services which can be delivered via a home visit. And with male grooming now becoming much more high-profile, this has simply increased the options available for entrepreneurs who have, or are prepared to develop, the essential skills and knowledge.
And likewise in many other business sectors, companies now find it much cheaper to outsource niche requirements to freelancers – which in many instances can be enough to provide an entrepreneur, who has the requisite skills, with all the work they will ever need.
New technologies have created new markets and new possibilities.
But smart entrepreneurs will note that technologies often facilitate new approaches to old problems or solutions which have suddenly become more viable. That often means reviewing your existing skills and interests which now, in 2018, could well be productively repurposed to your business advantage.
By Jo Thornley, Head of Brand and Partnerships at Dynamis. Joining in 2005 to co-ordinate PR and communications and produce editorial across all business brands. She earned her spurs managing the communications strategy and now creates and develops partnerships between BusinessesForSale.com, FranchiseSales.com and PropertySales.com and like-minded companies.
You’ve found a great business with lots you can get excited about. Then your due diligence uncovers some questionable sales figures, or some debt that has not even been mentioned.
You could easily walk away at that point – but does a flawed business have to signal the end of your interest? Or could it mean that, at the right price, you could still acquire a business that is actually very salvageable?
Here are some issues you might want to consider if this situation arises:
Can you salvage an enterprise in debt?
Business problems arise for many reasons, but if you really take the trouble to understand the issues and calmly assess the situation, not every business flaw is terminal.
For instance, an off-license with small, short-term debt problems can be overcome provided you have conducted proper due diligence, analysed the true reason for the debt position, and are certain you know what to do to prevent this situation recurring in the future.
Or, a hotel owner who has lost their spark to bring the business forward can often seem more worse for wear than if a new proprietor were to come in with a whole new outlook.
The key consideration here is: Can you quantify the true financial position beyond doubt? It’s never wise to just take the seller’s word – especially as it took your due diligence team to spot the problem!
So, always err on the side of caution, and until you get right to the bottom of things, it’s always best to assume things may be even worse than you presently surmise.
What if sales have remained static?
Sometimes a vendor is too wrapped up in certain aspects of the business and may not fully appreciate how stagnant the sales picture has become.
Alternatively, the owner may have been in business too long and just failed to move with the times. More specifically, some owners may too readily assume they cannot compete in an online marketplace – without ever exploring, or even understanding, what the issues are and what is really at stake.
If you truly understand the sector, your fresh pair of eyes may spot opportunities for new revenue streams or innovative ways to revitalise existing product lines or services.
Be aware that like much else in business, at its root this may turn out to be another people problem: Perhaps a jaded management, or a demotivated workforce (who may fear their jobs are on the line?).
Turning things round may involve not only re-booting operations but also giving your staff team good reason to feel they still have a future with the company.
Under new management
Assuming you have analysed any substantial flaws and are sure they are definitely fixable, then you can turn your thoughts to how best to exploit your status as a potential new owner.
Because you are not directly responsible for historical shortcomings, you should be able to enjoy a period of grace during which you will be perceived as providing the business with a welcome ‘breath of fresh air’.
That should be your cue for instigating a brand new marketing campaign to attract a new customer base.
Along with that, implementing a proactive strategy to show your existing customers, suppliers and other business contacts that the company is still very much alive and kicking and has plenty of plans for a more prosperous future.
Just because a business for sale may appear to have some flaws that does not necessarily mean you have to turn your back on it.
If you can identify an enterprise with lots of hidden potential which essentially needs to be nurtured back to health after a period of neglect, then you could be looking at striking a great deal and acquiring an established business which you can soon revamp and bring a fresh outlook to.
By Jo Thornley, Head of Brand and Partnerships at Dynamis. Joining in 2005 to co-ordinate PR and communications and produce editorial across all business brands. She earned her spurs managing the communications strategy and now creates and develops partnerships between BusinessesForSale.com, FranchiseSales.com and PropertySales.com and likeminded companies.
I would suggest that you ask yourself some questions before you buy a business. I don’t mean the obvious questions about your intended acquisition. It is important that during the due diligence phase of the purchase you make sure that you investigate all aspects of the business to make sure there are no unseen boobytraps but I am referring to the initial decision-making process before the purchase.
There are four key questions, which may not immediately come to mind but I think you should consider.
1) Should I start up a business or buy an existing one?
This is a fairly clear-cut question but to get to the answer needs some work. If you have an idea for something new there is no choice to be made, but if you are venturing into an existing area then you need to calculate the options. On one side, starting fresh means you get to create something in the shape you want. You will face an initial investment as you get ready to trade then build sales. New businesses typically lose money in the first year, break even in year two and turn a profit in year three. On the other side if you buy an existing business you will probably pay more but achieve profits in year one. Work through the numbers you might find that buying a going concern is cheaper.
2) Do I have the necessary skills?
Look at the business and decide the role that you will play, then make a list of the skills you will need to perform that role, don’t panic if you fall short. If you are going to buy a newsagents you will need an excellent grasp of numbers as margins are critical, you will need social skills if you are going to interact with customers and management skills if you have staff. It is important to recognise your strengths and weaknesses and address any shortfall. If you lack management skills a short course may be enough to get you started.
3) Does the business suit me?
I have seen several businesses fail, not because of some change in fashion or even illness but because the owners did not realise what they were taking on. You may like the idea of running a restaurant / café or owning a cleaning business and even have then skills involved but have you considered the commitment. Running your own business can be very rewarding, you answer to no one and success feels great, but in the early years, it can be many hours of hard work with small reward. If you like what you do it is much easier find the energy and courage required.
4) Can you add value?
Business is not a static environment. Whether you buy a business or start from fresh it is important to continually look for ways to add value. You cannot simply expect to buy a business and expect it to generate cash year after year. When you buy a business you should have a clear vision of how to improve it, then as time goes on take a back step and look again to see if you need to make changes. If you cannot add value then you should consider getting out because your competitors will gradually erode your position.
Once you’re suitably happy with the answers to the questions above and assured that you’re in the right position to move ahead with an acquisition you can choose a Business Partnership to expertly guide you through the process. Business Partnership has a long history of matching sellers and buyers of UK business. Our extensive experience means we are equipped to help you make the sale of your business as simple as possible. To take the first steps, get in touch with us today on 01606 535 024.
When buying anything, be it a television or shares in a company, we usually carry out a certain amount of due diligence. We research the item and find out what we can about the product beforehand. However, there’s always an element of ‘buyer beware’.
It’s often impossible to know exactly what you’re buying, so for most purchases, it’s sensible practice to seek protection from the law in the shape of a warranty or indemnity. A television manufacturer probably offers this as standard. Business sellers not so much.
If no warranty or indemnity cover exists, the buyer has no recourse against the seller unless the latter has made a deliberate misinterpretation of its product.
Warranties in Business Transfer
As with a television set, a warranty for a business purchase is a contractual statement or assurance issued by the seller to the buyer, effectively guaranteeing that a certain standard of function will be maintained.
For a business, a warranty is normally documented alongside the purchase agreement. Unlike a retail warranty, the buyer expects to have a good deal of input in its terms.
Writing a Business Warranty
What should a warranty contain? Naturally, from the buyer’s perspective, it should aim to protect them from unnecessary risk, by apportioning future liability and risk between buyer and seller and encouraging the seller to be open and honest about any areas of concern.
Usually, with a business, a warranty wouldn’t bring a refund or replacement as it might with retail goods. However, it may well contain a clause allowing for a purchase price adjustment if expectations fall short of what’s specified. It also allows a buyer to seek protection against any known liabilities through an indemnity policy.
De-Minimis and Aggregation Limits
While intended to protect the buyer, a warranty also offers a level of protection to the seller. A warranty usually comes with limits of liability referred to as de-minimis and aggregate limits.
De-minimis is an amount that’s too small to be meaningful. Immaterial. When claiming under a warranty this is the specified minimum amount below which no claim against a warranty can be made.
However, as a further protection, the aggregation limit is the minimum loss the buyer must prove before he can seek reimbursement from the seller. This can be one large claim or a series of claims, each being worth more than the de-minimis limit.
Time Limit
Most warranties have a time limit – a maximum period during which the buyer can make a claim. This is subject to negotiation during the purchase agreement, but there will inevitably come a time when the success or failure of a company can only be the responsibility of the new owner, with no comeback against the old.
Understanding Your Rights
If you’re buying a business and want to know what your rights are or you’re a seller trying to keep your ongoing liabilities to a minimum, get in touch with Business Partnership. Our thirty years’ experience in helping clients buy and sell businesses gives us a unique insight into what is a reasonable liability for a seller and the level of expectation for the buyer. Let us help you find the right terms.
This video was made in partnership with https://uk.businessesforsale.com
You’re interested in buying a business. You have the capital, you know what you want, now how do you go about starting the ball rolling? Where do you begin? Paul Dodgshon, Regional Partner for Manchester Central & South Cheshire is back again for another video to help guide you through some top tips to remember when setting out to buy.
1. Define your interest – understand your skills, experience and most importantly, what you enjoy doing.
2. Make yourself desirable – your seller has put a great deal of time and effort into their company, they will want to pass it on to someone who knows what they’re doing.
3. Understand the business value – value is subjective, what might be worth a great deal to one buyer, may be worth pennies to another. Understand and apply your position and interests to a business before you apply a value.
4. Formulate a comprehensive offer – an offer should take into account:
– The price
– When you’ll pay (will you pay on completion or defer)
– Confirmation that you have, or can get, the funding.
5. Make sure it matches your initial intentions – before you buy, go back to your initial thought process. Make sure it matches the priorities and goals you set to achieve.
Whether you’re selling, buying, or planning for the future, Business Partnership is here to help. Contact us today to speak with your local Regional Partner and start your journey toward success.