It’s very risky to start a business. Research studies have shown that up to 99% of startups fail within two years of start. The good thing is that you can lower the risk by buying an already established business.
In addition to lowering the risk of starting a business, buying an established business ensures that you start earning immediately you make the purchase-you don’t have to wait as its common with new businesses. You also tend to have a shorter learning curve as by the time you are buying the business you will have employees who are ready to work for you.
How to Buy A Business That Fits You
Although, buying an established business is better than starting a new business from scratch, you shouldn’t buy just any business-you should buy a business that is ideal for you. Here you need to assess your skills, interests and financial resources. As rule of thumb you should buy a business that you are knowledgeable about. For example, if you have been in the medical field you should go for a business that is related to the medical field.
You should also go for a business that you enjoy. Remember that for your business to be a success you need to put in a lot of hours and it will be almost impossible for you to work for long hours in an industry that you don’t enjoy.
How to Buy A Business
You can’t wake up one day and decide to buy a business-you need to first do your research over a period of time. You should start by defining the business that you are interested in. To make the decision you need to assess your professional skills, business experience and core competencies. You should also assess your financial abilities.
If you have done your research and found an ideal business, you should make an offer. The offer of the purchase should include the price to be paid to buy the business, training to be provided to you, assets in the business, financing details to be provided by the seller and the area to be covered by the non-compete agreement.
After you have reached an agreement with the seller you should put the agreement into writing. As rule of thumb you should ensure that a business attorney is with you in order to make the agreement legal.
These are the tips on how to buy a business that fits your situation. Remember that buying a business is expensive; therefore, you should ensure that you do thorough research and buy the right business.