Purchasing an existing business can have it’s pro’s and cons. Below are three simple tips that can make your life a lot easier if you decide to make the plunge.
1. Research research – do your research! It’s never been easier to find out the history of a pre-existing business than ever before. With the use of the internet, you can determine a businesses worth, you can look nationally at what the product from the business offers and see how it fares throught the country etc. You can even get insightful info about the current principle owners.
2. When seriously thinking about buying an exising business, don’t think with your heart and head. Think with logic, pen and paper. Yes, I’m sure you would love to run your own Wave Runner business from the beach, but do you know what the cost of insurnace is? What would happen if gas more than doubled ( remember that nearly happen a couple of years ago)? Make sure that you’re looking at all the associated costs and possible expenses. Of course you want and need to enjoy the business, but don’t get caught falling “In love” with the idea without knowing what you’re getting into.
3. Remeber that the exisiting customer base is the reason why there’s a business in the first place. You can’t go into this new venture without first making sure that your ownership style isn’t going to scare off your customers. In addition, don’t go crazy making tons of changes in the beginning that could potentially frustrate the customer base and push them to competitors. Remeber, everything in moderation….. Rome wasn’t built in a day.
These are just a few tips to remember if you’re thinking about buying a new business. More than anything – do your homework – it will pay off big down the road.