Entrepreneurs have a task of starting and running a business, thus buying a business is a form of unique investment: getting into an existing business rather than starting up a new one. This form of investment is assumed to be a franchise, which is almost as significant.
Issa Asad Florida based entrepreneur, businessman, and social media expert since 1996 says there are specific things you must do in order to purchase a business. Mr. Asad is the CEO of Quadrant Holdings and Q Link Wireless, located in South Florida.
Here are Issa Asad’s 3 Tips for Buying a Business
1. It Takes Time
Building up into this kind of business attracts different, unique challenges, therefore there are a few considerations to be observed. This buying process will take a longer period since negotiations have to be done, putting into considerations the big question of why they want to sell. This company might have had a bad reputation and soured customer relations, thus one will need to review company’s books of accounts and find its executive summary. Though none of these would reveal the whole picture, it would help. By starting your own company, you only need to fill up some legal paperwork and apply for permits and licensing and you are good to go.
2. Understand the Business Niche
The buyer needs to shadow as a current owner for a while to familiarize with the company to be bought and learn its operations and point out what needs to be changed after gaining full ownership. For instance, when the prospective buyer finds out that they are overstaffed, it makes much sense to downsize and save on extra wages. Thereafter, the buyer needs to think through and make the right decisions on the big sale.
Buyers at times feel like imposters; the feeling that you do not deserve the success that’s coming your way for it feels like a fraud. This feeling can be technically inflamed by buying a business. These negative thoughts must be fought by recognizing the changes one needs to make to better the company’s operations. When buying someone else’s creation, one has to be comfortable, as you will possess and run it your own way. Owning a business comes with commitment in terms of time, money and the knowledge of what to expect throughout the process. These would make the whole process easier for the entrepreneur.
3. Do Your Research
It is vital to do a research when it comes to buying a business because an existing business has a lot more than a name and branding: clients’ lists, trained staff, goodwill, branding equipment, thus assumed to be cost friendly compared to starting up your own business, which is never the case. This should therefore take lesser time to start realizing profits, which is not the case at times. Therefore, it is advisable to do research before buying a business.
So, when buying a business one has to plan early enough to start the buying process, as it is involving, with intense procedures. Avoiding negative feeling eases the whole entrepreneurial journey, hence a feeling of content and ownership arises. Having a clear plan on changes to be made will help in shaping and reorganizing the company to the business you want it to be. Before settling for a good business you want to buy, it is wise to initiate a research to find out whether it would be cost effective to invest your money into buying the business as opposed to starting up your own.