The idea of becoming your
own boss is always appealing as millions of people have tried and liked it. How
you determine if you are ready to become one yourself? What are the challenges
of buying an existing business that’s for sale?
There are ten questions that
you need to be able to ask yourself:
- Do I thrive on risk and challenge?
- Do you want the
freedom and responsibility?
- Not having
anyone over you means that you will be the person who receives all the acclaim for
the business’ success and scrutiny for its failures.
- What are my reasons for buying a business?
- There has to be
a clear motivation that you must think out carefully. Is your reason solely
financial – most businesses take years before they start receiving major
profits from sales; job security; dissatisfied with current job; want
recognition for efforts, make more money? Will being an entrepreneur fulfill all
- What is my support group?
- Will you have a
team backing you up, or are you on your own?
- Family, spouse,
partners with experience in ownership.
- This one will be the best suited for you out of the three possibilities.
- How much do I have to invest?
- Are you willing
to spend what you have in liquid capital?
- What are the
- What would I like to do with the rest of my life?
- Do you want to
not only be your own boss but run this kind of business forever?
- Is this the
industry that I want to be in?
- What tools do I
need to be successful?
- What makes you
familiar with this industry to be successful?
- What is the trend of that business/industry?
- Find out the
gross sales of that business?
- What cash flow
do you have to work with?
- What are the necessary expenses?
- Leases, rents,
labor, inventory and other expenses required to run the business effectively.
- Why is the present owner selling the business?
- Poor health,
retirement, partnership dispute, burn out, relocation plans, not making enough
money, poor management, undercapitalization, better opportunities elsewhere.
- Seller is a pro
that buys, builds and sells businesses.
- How do I feel about this particular business?
- Do you like the
industry, customers, feel of the business?
with being there every day to oversee and run?
- How do I compare to the present owner?
- Is he/she
similar to you in terms of personality?
- High strung or
- Similar and
polar opposite business habits
- Few ever do
things the same way as the present owner
- Most see additional
- Costs $$$
Once you answer these questions. You will have a clear
understanding if business ownership is right for you. Contact your
local VR business intermediary for more information.