Being the boss gives you the freedom and flexibility to work the hours you want so you can spend more time with your kids.
If you haven’t been a business owner before, it’s often a good idea to buy an established business that’s already profitable, rather than trying to start something from scratch. But, buying a business comes with its own set of challenges.
Here are some things you need to keep in mind if you’re looking to buy a business.
1. Choose a business that you can handle
It’s usually a good idea to buy a business that’s in an industry that you have some experience with. If you want to buy a café, having worked in a café before will give you invaluable knowledge about the day-to-day tasks and challenges in that kind of business.
Having a trial period with the new business will also be very valuable.
2. Do your due diligence
This is one of the most important parts of buying a business. You need to thoroughly check all the details of the business to make sure the numbers add up and that what the seller is telling you is true.
You should also know about what competitors are in the area and check with the council to see if any planning permits have been lodged for nearby properties.
3. Check the equipment and the stock
If the business you’re buying has any equipment, machinery, computers, or other physical assets, make sure you check how old it is and what condition it’s in. You also need to check the quantity and value of any stock that you’re buying as well.
You need to be confident that you’re paying a fair price for what you’re getting. The only way to do that is to know exactly what you’re buying.
4. Make sure you have all the necessary certifications
If the business involves serving food or alcohol, make sure you get a Responsible Service of Alcohol certificate or food handling certificate as soon as possible. If you’re going to own the business, you need to be able to work in it, after all!
Different industries will have different requirements for certification so you may need to check if there are any that are relevant to the business that you buy.
5. Delegate tasks to others
This is more about running a business than buying it, but it’s worth keeping in mind. If one of the reasons you want to buy a business is so that you can spend more time with your family, then you need to be able to leave work and do that.
It’s quite common for small business owners to spend every spare moment working on or thinking about their business. In reality, running a successful business has more to do with effective leadership than spending more time working.
6. Get expert advice from a business lawyer
It’s essential that you get advice from a business lawyer when buying a business. They will be able to look over the contract and all the relevant documents to make sure everything is correct and in order.
These tips should help make the purchase go smoothly and prevent potentially costly mistakes.
Any other tips you’d add to the list based on your experience? Share with us below.
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