Published on 15/10/2015 by Punchmedia

Buying a Business - Where to Start

There’s a lot to think about and a lot of questions to ask yourself when you consider buying a business. What type of business should I buy? How do I go about buying it? What research should I do before I buy the business? We decided to consult the experts to help find the answers to these important questions and more and thought Licensed Real Estate Agent, Certified practicing Business Broker and Director at Beyond Business Sales, Catherine Kimpton was the best qualified for the job. With over twenty years’ experience in recruitment, business sales, management and marketing we think you’ll find our Q & A session with Catherine both an interesting and informed one.

AB: Why should people buy a business?

CK:

Business ownership can be very rewarding the opportunity to work at something that inspires you, and that you can grow and nurture and see the rewards of your hard work. Buying an established business means that you are buying certainty , you are buying a formula that already works that has been tried and can be relied on to generate profit for you, thus reducing your risk of failure and financial loss

AB: What type of people are currently buying businesses?

CK:

Business buyers vary from young entrepreneurs wanting to begin assimilating wealth, to mums and dads looking to forge a stable income for their family and a healthy work life balance and those whom no longer want the constraints of working for someone else. I think it’s fair to say that all would be business owners believe that owning their own business will give them a better quality of life in respect to being able to have more control over the decisions that make on a daily basis

AB: How do people go about buying a business?

CK:

I am still amazed how many people have very little qualified help when buying a business, we all seek professional help when purchasing a house yet when it comes to a business purchase it seems that a lot of the basic questions are not asked. Many potential business owners have not given adequate thought to the type of business that best suits their needs, capital required to buy and even whether they are suited to be a business owner they simply jump "on line" and look for something that takes their eye.

AB: What sort of research should they do prior to buying a business? 

CK:

A LOT! Research is critical to getting it right. Start with yourself. A Potential business owner needs to do a personal SWOT analysis to see if they are ready to be a business owner, having a passion for a certain industry a flair or a talent is good but running a business is a whole different skill set. Be honest in regard to the expectation and requirement for the income the business needs to generate, this will focus you in your search.  Look at the industry you are going into, what’s selling, are there trends? When you are looking at business have a structured list of questions that you go through with every business, ensure that you have access to all the information, good business keeping records, everything should be cross checkable there will be no gaps, you are looking to mitigate your risk, after all that’s what you are paying for!!!

AB: Is it important they seek the expertise of a Business Broker?

CK: 

Absolutely, if you are looking at a business listed with a Broker you can be sure that you will be able to access to all the information to make an informed decision. It is the Brokers job to bring the business to the market accurately presented with all of the correct information.

AB: What does a Business Broker do?

CK:

A Business Broker is the Real Estate Agent to the Business World. Our job is to represent our Vendor in the market place. So we collate all of the information on their business, and present it to the market, advertise the opportunity and negotiate with prospective buyers in the same way as your Agent would for your home to affect a successful sale for the best possible outcome for our client.

AB: Sounds simple?

CK:

Of course this process is considerably more complicated than a home sale as we have detailed financial information to deal with, leases, franchises agreements, staff requirements, liquor licences, to name a few! But in essence we are the conduit between Vendor and Purchaser to ensure a transaction proceeds and settles smoothly.  

• If you are considering buying or selling a business, contact the team at Beyond Business Sales via their website at www.beyondbusinesssales.com.au

punchmedia

Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

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