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.

Selling your Small Business – Discover the formula for selling a business

Sooner or later most business owners will find themselves asking "what shall I do with my business?”

Like most business owners, you have put your all into your business to get it where it is today and it is a big part of your life you are parting with; there can be a lot of emotion tied up in the process but it is important to work out what you really want and follow a realistic path to get there.

A well thought through and planned formula for selling a business will ensure you achieve a great result for you and the future ongoing success of the business.


Deciding who to sell to as part of your formula for selling a business -

Many small business owners are very concerned with who they sell to and who is going to look after their ‘baby’ (business) if and when they go. Some common questions include:

• Should I sell directly to my staff?

• To the competition up the road?

• Perhaps to a much larger business?

• Should my children have first option?

• Should I stay on and play a role in the business’s future after it sells or pursue other interests?

Customizing your own formula for selling a business –

What do you really want and how will you get there?

Coming to grips with the simple fact that leaving your business is going to eventually happen for one reason or another is difficult, especially when you have invested so much time and energy.  Try and put your emotions to one side for a moment; sit down and really think hard about what you truly want from selling your business.

• What is your desired outcome?
• What will you do with the proceeds?
• What about tax?
• What will you do with your time?

We all know that it is preferred to be deciding when, where and how to sell rather than having to deal with selling should something unexpected arise, however, in reality it is just as important to ensure you include the unforeseen.

Formula for selling a business - Planning

Having a good plan outlined and ready for selling your business is vital.  Strategy comes into play here also and I recommend speaking with a few other business owners who have decided to sell or have been forced to sell in the past. Most business people are happy to share their experiences and recommendations. Obviously, this is just one source for information in the planning process.

Educating yourself and understand the process is highly recommended and with this comes a few serious questions to consider such as:

• What can I do to ensure my business is operating at its best with little time?

• What are the best strategies to market my business?

• When should I get my lawyer and accountant involved?

• How do I sell my business myself – without a business broker? Do I need a broker?

• How do I establish the correct value of my business?

Once you have written down your desires for success in selling your business, run it by your trusted team of confidants for feedback.

Buying an Established Business – Where do you go to Buy a Business?

Buying a business can be a little overwhelming. There are many places which list businesses for sale. The most obvious places to start are of course Newspapers and Trade Magazines; talk to business brokers, and ask your accountant or business advisor if they know of any potential businesses on the market.

Also, research businesses for sale online – It’s a good idea to list your requirements online and receive instant notification when something suitable comes on to the market.

If you are already in business and are looking at strategic acquisitions, you may find word of mouth a useful method – through customers, competitors and suppliers. Naturally this depends on the relationship you have with them.

Every once in a while you may come across a business you would just love to own that is not for sale and wonder how to approach the business owner.  This type of sale happens more often than you would expect, but it must be done in the correct manner to ensure you buy at the right price.

1/  Buying a Business – What type of business can you see yourself owning and working in?

If your not sure and haven’t had a great amount of exposure to small business your first step is to find out more on the life of a small business owner, have a chat with some business owners and find out how their first few months were when they were new to the business.

How has buying a business changed their lives and what advice could they provide. Was their motivation to work in the business or run it at arms length?

Straight talk – unless you are looking at buying the business do not ever ask them personal questions such as how much the business turns over or anything regarding their financials as that’s like someone asking you how much you get paid.

Do not be hesitant to approach a business owner; you’ll be surprised just how much assistance business owners are willing to give you if you’re genuine and transparent about it.  It's a good idea to be prepared and have a couple of questions ready ahead of time, by being tactful and considerate you’ll get some great insights on operating a business from successful business owners!

2/  Buying a Business – Are you a first time business buyer?

It’s very normal for first time business buyers to start feeling overwhelmed and a little hesitant about buying a business, if this is the case you might be more comfortable taking a look at a franchise.

Many first time business buyers feel that buying a franchise reduces the risk and provides them with additional and ongoing support from the franchisor.


3/  Buying a Business – Discover hundreds of different types of businesses for sale

Business buying and selling websites are popping up all over the place which is great for you. There are many sites to look at, here’s a few tips to help you research

- Use a search engine like Google and make sure you’re ‘googling’ in the Google site associated with the country you are looking to buy a business. e.g. www.google.com.au (Australia). This will show your local country pages first, making it easier to get to where you want fast.

- If you don’t know what type of business you’d like to buy, simply search for businesses for sale in the geographical area of choice.

- If you have a clear idea on the type of business you’d like to buy, then simply type the exact business for sale and geographical area.

- Make sure you don’t miss the Businesses for Sale By Owner sites – Google shows a healthy list of them, our research indicates that over 30% of the businesses offered for sale are for sale by the owner (you may see the abbreviation FSBO or DIY ) so Google the abbreviation.

Many smart business owners are now acquiring all the skills and information they need to successfully sell their own business without a business broker. This could be a huge benefit to you as the business buyer.


Buying a business successfully is really quite simple when you have all the information and a helping hand to guide you through the process without making avoidable mistakes.  There are even some interesting ways to assess yourself to see if you are truly ready to run your own business.  Checklists are available in the Bizbuykit and will prove valuable in your quest for a great business.