TOP 9 CONSIDERATIONS BEFORE YOU BUY A BUSINESS UNDERSTAND YOUR MOTIVATION
Author:
Richard Jacobs Business Broker
P. 02 1272 8179 E. richardj@barkerbusiness.co.nz www.barkerbusiness.co.nz Richard has had an extensive career in the private sector working in General Management, Sales, Marketing, Operations, Delivery, Finance and just about every other aspect of business.
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o your, considering the exciting journey of becoming a business owner through acquisition. It is a significant step, whether you are a seasoned entrepreneur or a first-time buyer. This endeavour can be highly rewarding, but it also comes with its own set of challenges. To ensure your success, it is crucial to approach it strategically. Let us explore some key thoughts that can guide you in this journey.
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Before you jump into the world of business acquisition, it is essential to take a moment for introspection. Ask yourself why you want to buy a business. Is it to follow your passion, turn a hobby into a business, be your own boss, achieve financial freedom, or leverage your skills and experience? Understanding your motivations will be the foundation upon which you build your business goals and make informed decisions throughout the entire process. It is also particularly important to distinguish between buying a business and purchasing a job. While both options have their merits, they come with distinct levels of responsibility and expectations. Buying a business should ideally provide you with the opportunity to scale and grow, whereas buying a job may involve more day-to-day involvement in the business's operations.
DO NOT START FROM SCRATCH One of the most significant advantages of buying an existing business is that you are not starting from nothing. It may seem
like starting from nothing is less expensive but consider that an established business already has a customer base, revenue streams, employees, equipment, suitable premises, and often a solid reputation. This can save you the time and effort required to build a brand and customer base from the ground up.
GROW FASTER THROUGH ACQUISITION Business growth can happen organically or through acquisitions. Many experienced business owners quickly realize that acquiring an existing business can be a strategic move to expedite their own business's growth. By purchasing a business in a related industry or market, you can create economies of scale, tap into new customer segments, explore new distribution channels, or offer complementary products and services. This approach often allows a business to scale faster than it would through organic growth alone.
STRATEGIES FOR SELECTING THE RIGHT BUSINESS OPPORTUNITY Choosing the right business opportunity is a critical first
