Buying a business is about timing. The right time differs for everyone and depends on their personal situation.
Yes, No, Yes, No, Maybe, Yes umm No err YES
Is it the right time to buy a business differs for everyone and specifically is aligned to their personal situation.
With interest rates so low and interest income at its lowest it’s not recommended to have excess funds sitting in a term deposit earning little taxable interest.
The share market is possibly a preferred option to invest funds and whilst property is solid, the cost to enter this market with stamp duty and title office fees, can eat away at your initial investment.
Interest rates at an all-time low encourages borrowing, but borrowing for what.
Buying a business is about timing. Being an employer and being totally accountable for the success of a business is not for everyone. Risk is everywhere and tangible. A business absorbs both your time and thoughts and finances but has rewards that can outweigh the mental and emotional exhaustion.
If you have thought about having your own business and motivated to make change and have the passion, energy and a specific skill set then the time is perfect to buy a business.
There are thousands of businesses on the market at any one time. Some are excellent opportunities and others are businesses that have had little success. The challenge is selecting the right business on the right terms at the right price.
Remember you will not get a loan if the business your buying shows a reported loss, so be wary, when a broker tells you about add backs (non business related expenses) and how it is really making a profit.
Searching for the right business is a challenge but made so much easier if you have a brief. Your brief should cover the following:
- What am I good at
- What do I like doing
- Where would I like to be
- How much can I invest
If you can be specific with your search then identifying business that may be suitable is so much easier
After identifying a business then it’s time to answer the following
- Can I make money
- Can I grow this business
Having a business should be an enjoyable experience so make sure the business you buy provides that experience and everyday is a joy to open the doors and greet the challenges ahead with vigour, excitement and a smile.
If it is the right time for you and you would like a hand to find your right business, please call Business Buyers Advocacy Australia (BBA) for a chat.
