Buying or Selling a Small Business Term - "Fidelity Guarantee Insurance"

When Buying a Business ensure you understand Fidelity Guarantee Insurance


What is Fidelity Guarantee Insurance?

Fidelity Guarantee Insurance is insurance against loss of goods, negotiable instruments or other property resulting from the fraudulent or dishonest acts by employee/s.

One of many insurances you must be aware of when buying a business is Fidelity Guarantee Insurance. It's vital to know how many claims have been made in the last 3 years of the business operation, why/when they occurred and by whom.

5 Business Risk Factors to Consider When Buying A Business

5 Business Risk Factors To Consider Before Buying A Business

1. Are all processes and procedures clearly documented (position descriptions, supplier agreements, customer agreements, etc)?

2. How good is the communication within the organization (free flowing, honest, ‘no blame’ culture)?

3. What condition is the plant and equipment (modern, efficient – not outdated)?

4. What level of cooperation is there within the business (no silos, compartments, internal rivalry)?

5. Can the business run without the bosses for extended periods?

These are just a few areas I recommend investigating before you buy a business.  You can find more business buying tips in previous articles or the BizBuy Kit.

Buying A Business - Do You Have What It Takes?

Buying A Business - Buying The Right Business

Do You Have What It Takes To Buy A Good Business?

Do you have the type of personality to work for yourself?
How do you truly feel about risk?
Have you always worked for other people?

Before going ahead and buying a business, it's important to put things in perspective and really envisage physically being in a business.

Leaving the security of regular pay each week can be a big step and how you feel about this is just one of the things we look at in determining whether self-employment is for you or not.

You don’t want to quit your job just yet.

Being a small business owner can be exciting, rewarding, challenging and…your biggest nightmare; and that’s all on the same day . Many new business owners will find themselves working longer hours than before, particularly in the early stages.

The payoff is that it is under your control. You and your family will benefit directly from your efforts . As your business develops and grows, it should become less dependent on you.

Straight talk:

Businesses that are heavily dependent on the owner will have limited appeal to future business buyers.