Published on 19/10/2016 by Punchmedia

Should I Buy a Business? The Burning Question

What are the advantages of buying a business?

  • You could find a well run established business with a solid client base, an equipped premises and a good lease.
  • The initial establishment and ground work has been done.
  • The business will have a proven financial track record which could make getting a loan easier for you.
  • A market for the product or service will have already been demonstrated and a marketing plan maybe in place.
  • There may be existing customers, a reliable income, a reputation to capitalise and build on, and a useful network of contacts.
  • If there are existing employees they will have experience you can draw on.
  • Many of the problems will have been identified and hopefully solved already.

What are the disadvantages of buying a business?

When buying a business keep in mind that not all businesses for sale are good businesses. Some are run down, some badly managed, others poorly located or perhaps suffering from recently introduced competition. Any of these characteristics could offer an opportunity to develop the business or it could be a big risk. Other aspects which could be a disadvantage are:

  • You often need to invest a large amount up front, and will also have to budget for professional fees for solicitors, surveyors and accountants.
  • If the business is not running at an optimum level you may need to invest quite a bit more on top of the purchase price to give it the best chance of success.
  • You will need to honour or renegotiate any outstanding contracts the previous owner leaves in place.
  • You may inherit negativity from existing staff.
If you've weighed up the pros and cons of buying a business for sale and are still thinking it may be your best long-term career option, take a look at our location and category pages e.g.: retail, health and beauty, hospitality on the AnyBusiness site to see if there is an opportunity that will suit you best.

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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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