Top 5 Things to Consider Before Buying a Small Business
06/06/2022
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Buying a small business can be a big commitment, so you want to be sure that you have everything planned and correct before going ahead and purchasing your new business.
Regardless of if you’re a first-time buyer or you have plenty of businesses under your belt, it’s easy to make mistakes and our guide will ensure that your journey is as smooth as possible.
Read on to find the top things to consider before buying a business…
1. Do Your Research
Research can be your best friend if done properly, as it ensures that you have enough knowledge to make an informed decision regarding purchasing a business. If you are a first-time buyer, researching the specific assets you may need, solicitors and investments would be a great step.
Once you have settled on how you are going to buy a business, research what business type is best to buy. What is thriving currently? Is it going to be a café, restaurant, or hair salon? Where will it be and is the area going to have high footfall and transport links? All these questions are ones you should ask yourself before making the investment, and all will be answered through thorough research.
When you have found the business you would like to buy, dive into their website, and social media and establish their audience. Research previous owners, and marketing strategies and get a feel of what running the business may be like.
2. Set Achievable Goals
Setting achievable goals is a great way of paving the path towards success, as you should have a clear vision of what you’d like to improve, keep and convert within your new business venture. Of course, it is normal for things to not go according to plan, but having a set list of goals and milestones you would like to hit after purchasing the business will create a clear vision and be extra rewarding once those goals can be ticked off.
Creating short-term and long-term goals will allow you to focus on the present and the future, smaller short-term goals like decorations and renovations are great and setting milestones you’d like to hit within 5 or 10 years of owning the business will allow you to evaluate progress when you get to said points.
Setting such goals will also make it easier to communicate with your sales agent and potential purchaser, as they will be able to advise if those goals and viable and not set false expectations, allowing you to know the full capabilities of your new purchase.
3. Make an Offer
Making an offer can be a crucial turning point in a business sale, similarly to purchasing a house, being assisted by a solicitor is a brilliant idea as it takes some of the pressure off your own shoulders and assures that the sale is being done in an efficient way.
When making an offer, evaluating the assets, equipment, location and the overall status of the business is crucial, so having some expert advice can be very helpful for your own peace of mind.
Requesting the conditions of sale and finding out if the current vendor may stay for a transition period should be clear during this process and you should have a crystal idea of what is going to happen when you complete the purchase.
4. Negotiate Your Deal
Negotiation, when you’re looking to purchase a business, is key – you want to maintain a deal which you are happy with and left feeling fulfilled, not out of pocket.
The business market can be a very complex one, so making an offer which is competitive and then negotiating a deal can be a difficult part. Our experts at Intelligent are ready to negotiate for you and ensure that you are getting the best deal possible when buying or selling your business.
Making a well-informed business decision and coming in with a suitable negotiation plan may be the difference between that business being yours and letting it slip through your fingers.
5. Get Expert Help
As you can probably tell, buying a business no matter how big or small can be a very stressful process. Having to research through suitable businesses, finding a reliable website such as Intelligent to purchase your business on and making an offer, to then negotiating and finalizing a deal, is a very complicated process and it is advised you should get expert help when going through it.
At Intelligent, we know that it can be daunting, especially if it’s your first time buying a business, so using our expert help and free services can be a great start to your new future.
Our experts will guide you in making an offer, negotiate the best possible price for you and ensure that the buying process will run as smoothly as possible. Our excellent team are here to answer any questions and give some of the best advice in the industry.
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So that’s it – those are the top things to consider when buying a business. Buying a business is as big of a commitment as buying a property, if not bigger, so making sure that you are making the right decision, negotiating the best price and researching thoroughly is key.
You can read our complete guide on buying a business, including the legalities and finance options you may take into consideration.
If you’re interested in finding a business to buy, take a look at our businesses for sale and start researching!
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