Buying a Business: Avoiding the First Year Glitch
Starting a business from scratch comes with a lot of risk. There is a tendency for most businesses not to succeed if they started a new, after their first year in existence. You are better off buying an already established business.
Apart from lowering the risk of failure, you shall start earning an income from it from the onset. With a new business, you would have had to put in a lot of money for a while before any of it started coming back. You will also no have to study so much about it, since it is a business that is already on its feet. You also get ready staff who will not need time to find their footing.
This does not mean you should go for the first opportunity you get to buy an established business. You need to find out more about them before choosing any. You need to find out what your skills, interests and financial resources are capable of. You need to align your search for a business with areas you are good at. A good reference scenario is that of a person who has worked in the pharmaceutical industry venturing into the drugs selling the business.
You also, need to find a business that has your passion for consideration. This is a business that is about to take up so much of your time. If you cannot stand the area in which the business is based, those shall be many miserable hours.
When you set out to buy a business, research is the first thing you shall have to do. You need first to be clear on the type of business you wish to do. You need to then figure out your professional skills, business experience, and core competencies. This is also another time to get a firm picture of your budgetary allowances.
This is the stage in which you know what business you need to go for. You should now make your offer. In your offer, you need to consider the price of the business, the training necessary before you start running it, the assets the business possesses, the financing details you shall get from the current owner, and the details of the non-compete agreement.
Once you have an agreement between you and the seller, you need to have all its details in writing. IT is important that there is a business attorney present, so that the transactions are deemed as legal.
You shall spend so much money when you decide to buy a business. You need to be careful before spending that much money. There is so much that finding the right business carries with it.
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