Knowledge, preparation and planning are important to success in buying or starting a business. But let's discuss something that contrary to what many people may think, is probably the most important consideration.
When deciding on a business, you will want to find one that satisfies your goals and meets your objectives. Understand your self before charging out to buy a business.
Start by reviewing your own abilities, knowledge and experience
Do you want a business that will take advantage of those or are you looking at it from the perspective "I want to go in a new direction"?
We believe it is always better to play to your strengths, abilities and experience but going in a new direction is OK if you have the core skills and capability to effectively apply them in a business that may not be one you are experienced in.
Give some thought to the following
- What type of business are you interested in?
- Do you want to buy a manufacturing, distribution, service or retail business?
- Do you want to run the daily operations yourself?
- Do you want to have a general manager to take care of that for you?
- Where do you want the business to be located?
- How big of a business do you want to target?
- What industries are stable or growing that you have experience or interest in?
These are things for you to think about to help you focus and prepare properly. Use the answers to the above, to develop a profile of:
1) the type of business you are looking for;
2) the industry best to focus on
That will help guide you as you begin to look for and research a business to buy.
Buying a good business is a significant way to increase your wealth and financial security. Solid established businesses can literally buy and pay for themselves. This is a true and well-established fact in business but we want you to understand that buying a business is not something you undertake if you need "instant gratification". You should never buy a business without checking it out thoroughly. Due diligence on the business (legal, financial and operations) are essential once you have identified the type of business to buy that best suits you best.
If you have the motivation and determination to buy a business, you can do it. But remember it is a good idea to start the process with understanding your self. Often people rush to look at or buy businesses without putting enough thought into their own suitability for the business. Then the business that they may buy ... becomes the worst job they ever had.