Many individuals will have ambitions to own a business, for many different reasons. Some of the most popular are a desire to be their own boss, a deeply rooted passion for a specific field in which they have considerable expertise, or, as is often the case for many, the desire to make money.
It is a challenging proposition for even the most ardent of entrepreneurs, and acquiring a business can be a complex process. Before you even think about buying a business, there are many questions that you should ask yourself;
1. Do you possess an in-depth knowledge of the field, and have you done your research on the industry and potential competitors/challenges?
2. Are you qualified to lead and manage the business going forward, or will you need to employ professional managers and a board of advisers to assist you day to day?
3. Are you willing to make a significant investment and assume the associated economic risk? Setting up in business can be a costly enterprise, and you must be prepared to bear the brunt of this.
4. Do you have access to capital and is the business financeable?
5. Have you considered the opportunity cost of the investment? Although you may be in it to make money, there will be a substantial initial outlay to get things up and running, and other investment opportunities could well prove to be more attractive in terms of return.
6. Are you comfortable with the impact owning a business will have on your personal life? Hard work and long hours may come at the expense of personal and social commitments, and it is an absolute must to ensure your spouse is on board from the outset. Their support will be imperative.
7. Are you able to handle repetitive, tedious tasks? There will be a lot of them, and it won’t all revolve around the more glamorous and interesting elements of the field for which you have a passion.
8. Have you considered future problems? Who will step in when you go on vacation? Timing and avenue of your exit strategy? What if the business fails? What aspects of a business in this field are critical to its success?
9. Are you experienced with navigating through the complex legal process?
10. Have you assembled a team of professional advisers to assist? It is essential to have lawyers, accountants and a bank on board.
For more information on the above, please contact Barry Riley on 0117 9453 042 or firstname.lastname@example.org