One of the most important things to consider when deciding to buy your own business is you. Do you have the drive, commitment and business acumen to take on an existing company and be a success?
Think about your own skills and experience and how they would benefit a business. Do you have experience in managing budgets, for example? Your personality is also key: energy, optimism, ambition, calmness under pressure, and self-motivation are just some of the necessary qualities.
Consider whether you want to be fully involved in the day-to-day management of the business or if you'd prefer to take a back seat and let other people steer the company. If you do want to take a hands-on approach, you must be a strong leader with the ability to motivate staff to perform to the best of their ability and realise their potential. A good leader also has the confidence to make tough decisions and deal with a range of issues, including workplace disputes and customer complaints.
Give careful consideration to what type of company you’d like to own. You will be able to bring far more to a business in a sector you’re passionate about and perhaps already have experience in. What kind of opportunity will allow you to put your strengths to good use? Maybe you already have a vision and strong ideas you’re eager to put into practice, or maybe you’re not sure yet. Either way, it’s worth researching the areas that interest you to find out what would suit you best and where you could achieve the most success.
The ability to sell is crucial, whether the business you're looking to buy deals in goods or services. It will be an advantage if you've already worked in sales and know how to make initial contact with customers, find out what their needs are, and 'close the sale'. Marketing skills are also a must, especially in the modern world where businesses are increasingly using social media to interact with existing customers and attract new ones.
Buying an existing business can be less risky and quicker than starting a new one. Borrowing money may prove much easier if the business has a healthy balance sheet and a good customer base, and there can be benefits to having premises already in use rather than finding a new site for a start-up.
You must find out what the risks are when buying a business and consider your ability to deal with any challenges along the way. Can you manage under stress and remain clear-headed? Think about why the current owner wants to sell. Is it because major investment is needed or maybe he or she simply wants to retire? Make sure you pay close attention to all areas of the business before signing on the dotted line.
Review your finances and think carefully about what you can afford, seeking professional advice whenever you can. When you’re looking to buy a business, lenders will require detailed information about the business and your plans for it. You may be able to raise money from equity in your home or from redundancy compensation, but work out what you need to borrow.
It's also worth considering what you can bring to a company and what you’d like in return. What are your hopes for the future, and the priorities in your life? Do discuss your plans with family and friends, because being at the helm of a business will place demands on your time, and you will need the support of those closest to you.
Owning a business is not without its challenges, but the rewards can be great. There can be nothing more satisfying than being instrumental in helping a business to grow and develop.
If you do decide you’re the right person to buy a business, a world of opportunity will lie in front of you, providing you put in the necessary hard work, are realistic about your own strengths and limitations, and are able to take the ups with the downs. You hold the key to a prosperous and rewarding future.
Image of business deal by Victor1558
