Buying a business is without a doubt a multi-step process. However, the steps do not merely begin at the point of research for businesses for sale or making an offer, but rather, in deciding what kind of business is right for you. There are a number of personal factors to consider when coming to this decision; keep in mind these five factors when picking the right business for you to buy.
The first thing to ask yourself is, How much time do I want to focus on building the business?
This is relevant because you can choose to start your business from scratch - building it from the ground up or you can choose to purchase a franchise, or buy an existing business. There are definite advantages to both, but the right one for you lies in how much creativity and flexibility you would like to have versus how much you would like to have already established for you, i.e., customer base, marketing methods, etc.
Whether buying an existing businesss, building a business, whether it is from scratch or not, requires certain investments. The first step is to establish a budget from within your means in order to determine the type of business you can afford. Once you have done this, you can have a meeting with your business broker to narrow down your options and pursue the right business for you. This budget can be for either seed money to begin a business or for the price of an existing one.
Location, location, location! Is the commute a big deal to you? Is the opportunity and success of the business more important? Once you have determined the kind of business you are looking for, you can also research the preferred area by demographics of potential customers.
If you’re looking to buy an established business, your professional background and experience may influence your decision in terms of the type of business you choose to pursue. The closer your experience and background is match for the business you want to buy, the less risk and greater chance for success.
In saying that, you may be opting to buy a franchise where often no experience is required as a full training program and on-going support is provided by the franchisor.
Last, but certainly not least, industry trends are important to research and understand before determining if a business is right for you. Before purchasing a business, you need to establish the kind of customer base you are hoping to reach. Not only does the service or product you are selling matter, but so do the customers, where they live and how they are willing to spend their hard-earned money. A business broker can help you not only choose the industry you would like to pursue but also understand its market trends and how to be successful in it.
All entrepreneurs reach a moment in their lives when the pursuit of a new business is strong. The decision of whether to begin a new one from scratch or purchase one can be a long-winded process, or made overnight, depending on what you find when you start looking. If you are at that point in your process where you would like to purchase a business but are unsure of how to find the right one for you, contact Transworld Business Advisors today for a free consultation!