Buying a business can be a long process, there’s a lot to think about and assess. In this blog I’m going to address the five main steps that I’ve found when looking at buying a business.
The first step is – Research.
Research is massively important as buying a business is a big deal, you’re going to want to know everything about A) the business sector/industry you’re thinking about entering and B) the business you’re thinking about buying. Once you’ve found which industry you want to join, you can then start looking for particular business opportunities. (The wesellanycompany.com website makes it easier for you to refine your search by both category and location). When you find one you like the sound of, do your RESEARCH. Look at everything from annual turnover, the surrounding area, and previous reviews of the business.
Step 2 – Contact the seller.
If you still like the sound of the business then contact the seller. You may have questions that couldn’t be answered through your own research. Get to know them individually, ask about their experiences of the business, both positive and negative. If possible try and arrange a viewing with the seller as after seeing the business you may have more questions.
Step 3 – Look at finance
If you’re still happy with the business, take a second to look over all your finances. You don’t want to buy a business without checking you have all your finances in check. If you’re needing a loan, try and secure this before getting to the final steps of the process as you’ll need time to finalise everything. As well as looking at your finances, look at the businesses as well, is it profitable? Will it take long to gain revenue? Does it need any refurbishments?
Step 4 – Make an offer
After completing the steps above you’re now ready to make your offer. Take into consideration the sellers asking price, and what comes with the business. Good reputation, loyal customers, fixtures and fittings are all valuable to a business, make your offer with this in mind.
Step 5 – Complete the sale!
Hopefully after making your offer the seller will accept and you’ll be able to move forward with the sale and, finally your new business venture.