Finding the right business opportunity doesn’t just lie in a businesses current performance and potential but also it’s compatibility with a prospective new owner. So before you commence your search you must have a complete understanding of what you want to achieve.
If you are considering buying an existing business, firstly congratulations, although many challenges lie ahead, buying a business can be a rewarding and profitable venture.
Buying an existing business is an appealing and less risky venture than a start up as much of the pitfalls and potential for failure are avoided. You will most likely be acquiring proven concepts, established brand, existing network and immediate cash flow which is hugely beneficial. More time can be dedicated to improving and growing the business as much of the difficult start-up work has been done. Owning a business can be a very positive experience however being totally accountable for the success of a business is not for everyone.
To ensure your success as a business owner it is critical you find the right business opportunity. Finding the right business opportunity doesn’t just lie in a businesses current performance and potential but also it’s compatibility with a prospective new owner. So before you commence your search you must have a complete understanding of what you want to achieve.
3 Questions to ask yourself!
What is your MOTIVATION?
Why is it you want to buy a business? Do you simply want to work for yourself, have the freedom and flexibility to make your own decisions. Are you looking to grow your expertise or work in a specific industry? Are you after a lifestyle change and greater work/life balance. You must be open with yourself in understanding your true motivations for purchasing a business, ask yourself whether your goals are realistic and could be potentially fulfilled with the purchase. If your true intentions aren't understood, a lack of commitment and direction may follow, hindering your performance and in turn the business. Likewise unrealistic expectations may leave you unfulfilled and unmotivated.
What is your PERSONALITY?
They say do what you love and you never work a day in your life! By understanding what you truly enjoy doing you too can never work a day in your life, to a certain degree. What do you envisage yourself doing as a business owner? What are your passions and hobbies? What have you enjoyed doing in the past? Buying a business within an industry that reflects your personality will help keep you happy, motivated and committed.
What is your SKILL SET?
Along with current performance the future potential of a business is a key driver behind whether or not to buy, although reaching that potential often comes down to the skill set of the owner. It is paramount to assess your own skills, strengths and weaknesses, and how they can be applied to a particular business and industry. What is it that you can bring to the table? Do your strengths match the needs of the market? Perhaps the skills you bring can help foster growth avenues that had previously been overlooked. Likewise addressing your weaknesses will help highlight areas of concern, determine if the business is suitable or not, and whether you need to take appropriate measures to fill those gaps. Leverage your past experience and expertise to help decide what type of business may be suitable.
By honest reflection on your motivations, personality and skill set you can determine not only whether buying a business will be a suitable venture but gain a clearer understanding on what businesses might be the right fit.