Finding the right business is easier now as a result of the internet. Make sure you have a good idea of the kind of business you want to buy – sector, size, turnover, location, and so on, the search through what is advertised on the internet, (on sites such as www.businessesforsale.com), trade journals and newspapers.
But you can also place an advertisement, including the specifics of what you’re looking for in the appropriate trade publications or websites, or contact business brokers and agents to see if they have something suitable on their books. (Although if you do use an agent, make sure they’re a member of the National Association of Estate Agents).
If you do find a business, how do you know it’s the right one for you? There’s a few things to look out for which should help you decide whether a business is right to buy.
Is the buyer in a hurry to sell? If so find out why. There may be hidden problems such as debt or a large fall in profits.
Check the finances – turnover, profits, and accounts, and also look at the customer base. How big is it? What’s repeat custom like? Is the location convenient for enough customers?
And employees are very important: a strong team is invaluable, so if you’re getting experienced employees who can help you learn about the market, it’s a huge benefit. But check their salaries and whether they’re likely to stay once you’ve bought the business. What’s the competition like? How does this business compare?
Obviously, the most important thing to look at when deciding whether a business is right for you is what you’re likely to pay for it, and what you get in return. A fair amount of research is needed to confirm this, and to check that you can actually afford it, and it is worth its price.
Doing this kind of basic research will help you work out whether this business ticks all your boxes.
