Buying a Business For Sale – Preparing To Buy
Before Buying a Business for Sale, Is Running a Business Really For You?
Assessing the advantages and disadvantages of buying a business for sale is that it will help you to avoid a costly financial mistake. Ensure you have the right skills and research completed before committing yourself and your money to a business. Find out more about the industry that your business will be operating in, also find out how businesses in an industry are performing on average, using information from the ATO’s Small Business Benchmarks by comparing various business costs to turnover.
The other most important part to prepare for before you even start looking for a business for sale, is finding and comparing loan options, learn more about financial management, tax basics and obligations, but the most important thing to find out first is Can you raise the finance to buy a business for sale.?
Is Buying a Business Right For You?
The immediate benefit of buying an existing business is that it’s already in operation and will provide you with an immediate cash flow. However, a common problem is the departure of the owner may negatively affect the business and so the current takings cannot be guaranteed. Also if you have the time and money to support yourself you may even consider getting a job in a business similar to which you want to buy, if you have never really worked in that field before. You should check out the business or businesses you’re interested in buying thoroughly before you buy a business for sale.
Advantages Buying a business or franchise has it’s Advantages.
Buying an existing business or franchise has advantages over starting a business from the ground up. Advantages can include:
- existing customers, contracts, suppliers, staff, plant, equipment and stock
- acquiring goodwill associated with the name and location of the business
- acquiring knowledge of current owner
- premises are set up and the lease on the premises already negotiated
- financiers lend more readily to an existing business with a trading record.
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