Buying an existing Business is like having to prepare yourself operating a business for growth and development in the context of Business which has already been developed before and grounded. Indeed, buying an existing business with no money isn’t effortless and takes heavy courage because 60% entrepreneurs step-back, the reason being the lack of finance. Here are five tips to build-back your courage and buy Business—
Why buy such Business?
Giving rise up to a startup requires the complete procedure from Business planning to execution along with the highest probability of risk. Whereas, buying an existing business is less risky because the business plan is already executed and one is only required to work on finance of business (to purchase as well). Moreover, it is sensible that an entrepreneur starts with NOTHING when it is a startup, however, an existing business even with money down brings some existing name in the market holding worth Goodwill, strategies, production, and sales.
Figure out the target business
To figure out the target Business, the first job is to track down a complete picture of industry sector you’re opting to buy a business in, make sure, you’ve marked the criteria(s) clearly comprising in financial and geographical factors in order to put your priorities at the top. Moreover, one can choose to make some calls and meetings with the Business associations within the similar industry to seek if there is any “to be targeted business” into their knowledge. Analyze the industry 360 degree and make a wise choice.
Look for the source of Finance
Several sources of Finance choices you would be having are Loans from the bank, seller financing, equity finance, Home Mortgage, Business overdraft and personal overdraft. There is a range of factors you must calculate upon before going for any one of the sources of Finance like the rate of interest, repayment terms & conditions, and risk involved.
Bring other business partners on Board
Buying a business with money down in partnership, bring the other business partners on Board once the sources of Finance are settled and progressed. Alongside, inform ASIC regarding all the changes you prefer to progress in Business officially, for an instance, names of Board of Directors.
Start your Business Journey
Now, give a good start to Business with a sensible entrepreneur’s mind and the confidence in the efforts you’ve put so far!
“Analyze—>Target—>Choose wisely—>Good to go.”