Buying A Business With Confidence

BUYING A BUSINESS WITH CONFIDENCE 

Reasons for Buying a Business

• To have their own business – rather than work for someone else

• A change of career

• As an investment

• Add to an existing business

Why is it important to Buy a Business with Confidence?

• There are very few ‘major’ purchases the majority of people make in their lifetime

  • House (hopefully an increasing asset)

  • Car (easily changed)

  • Business (only increases in value with hard work – and its success is the basis behind the other two above)

• A very expensive mistake if not properly thought through – with possible knock-on effects

• As you would with a house or car, determine in advance how much you are prepared to spend on a business, and how you are going to finance this

• Don’t forget you will need some initial capital to promote the business

• Prepare or get prepared for you a profit forecast and cashflow forecast for the business for the next 1-3 years (and don’t forget to include your financing repayments)

• Also work out your weekly/monthly breakeven position – what you have to take to survive

Buy a Business with Confidence – ensures:

• Greater opportunity for success

• Less opportunity for mistakes

• Money well spent

• Greater return

• Easier to sell the business at a later date – as you know it is marketable

Arguably as a Result – Buying A Business With Confidence

Will create a More Enjoyable and Successful Experience