A Step Toward Business Success
The reasons why people choose to buy a business are diverse— some want to be their own boss; others seek to make a livelihood of a favorite pastime; still others are drawn to the challenge of making an existing service better and more profitable.
While the motivations for buying a business are as individual as we are, the causes for business failure are surprisingly predictable. Eighty percent of small businesses fail within 18 months of opening, and it’s because the business owner has not effectively answered these questions before jumping into the fray.
What is my business plan?
How well do I understand the industry and the competition I will face?
Will my business experience be enough, or will I need to employ someone to manage finances?
How can I get the lowest possible asking price for this business?
How much am I willing to pay/ how will I finance?
Have I obtained an objective valuation for the business I’m considering purchasing?
Is there any outstanding litigation I need to know about from the current business owner?
How much revenue depends on one or two major accounts?
For some, these questions are answered intuitively. You’ve been through it before, understand what needs to be accomplished and what is at stake, and you have a path for how you’ll get to the finish line.
For others, the path to getting these questions answered comes through the help of a seasoned Business Broker. Getting assistance from a professional who has been through the process, understands what is required, and has the experience to achieve a desirable outcome is paramount to business success.
What Makes a Successful Business?
Beyond asking the right questions initially, a successful business acquisition requires both passion and practicality. Making sure existing customers don’t see a drop-off in quality will require tremendous enthusiasm and drive. But you also need the objectivity to assess your business’s value to its intended market to continuously evolve an effective strategy. Perhaps most important, hold on to the unique vision which inspired you in the first place, while also being able to seek advice from someone who has led others to success.
Could you answer these questions before buying a business?
If you’re considering buying a business, how would you answer these questions? If you can relate to most other new business owners–not quite sure of the right response, or where to start–the experts at Emerald Coast Business Brokers are poised to help you through the process. Success is attainable!