We all know that buying a small business can be a big commitment, so you want to be sure that you have everything planned and correct before going ahead and purchasing your new business.
Regardless of if you’re a first-time buyer or you have plenty of businesses under your belt, it’s easy to make mistakes and our guide will ensure that your journey is as smooth as possible.
Read on to find the top things to consider before buying a business…
1. Research... A Lot
Research can be your best friend if done properly, as it ensures that you have enough knowledge to make an informed decision regarding purchasing a business. If you are a first-time buyer, researching the specific assets you may need, solicitors and investments would be a great step.
Once you have settled on how you are going to buy a business, research what business type is best to buy. What is thriving currently? Is it going to be a café, restaurant, or hair salon? Where will it be and is the area going to have high footfall and transport links? All these questions are ones you should ask yourself before making the investment, and all will be answered through thorough research.
When you have found the business you would like to buy, dive into their website, and social media and establish their audience. Research previous owners, and marketing strategies and get a feel of what running the business may be like.
2. Pitch Your Offer
Making an offer can be a crucial turning point in a business sale, similarly to purchasing a house, being assisted by a solicitor is a brilliant idea as it takes some of the pressure off your own shoulders and assures that the sale is being done in an efficient way.
When making an offer, evaluating the assets, equipment, location and the overall status of the business is crucial, so having some expert advice can be very helpful for your own peace of mind.
Requesting the conditions of sale and finding out if the current vendor may stay for a transition period should be clear during this process and you should have a crystal idea of what is going to happen when you complete the purchase.
3. Set Goals
Setting achievable goals is a great way of paving the path towards success, as you should have a clear vision of what you’d like to improve, keep and convert within your new business venture. Of course, it is normal for things to not go according to plan, but having a set list of goals and milestones you would like to hit after purchasing the business will create a clear vision and be extra rewarding once those goals can be ticked off.
Creating short-term and long-term goals will allow you to focus on the present and the future, smaller short-term goals like decorations and renovations are great and setting milestones you’d like to hit within 5 or 10 years of owning the business will allow you to evaluate progress when you get to said points.
That's about all – those are the top things to consider when buying a business. Buying a business is as big of a commitment as buying a property, if not bigger, so making sure that you are making the right decision, negotiating the best price and researching thoroughly is key.
If you’re interested in finding a business to buy, take a look at our businesses for sale and start researching!