Are you considering buying a new business?
1st Dec 2019
Acquiring a business can be an exciting but daunting prospect. While it can be hugely worthwhile, it can also prove to be a very long process with difficult decisions to be made along the way, we've put together a few guiding pointers to consider before you get started.
The first thing to consider when looking to buy a business is to create a reliable business plan. Consider a realistic timescale, carry out your research into the historical finances of the business and make sure above all else that the numbers stack up.
Make sure you have the right support
Surround yourself with a team of trusted advisers and ensure that each and every detail is covered.
Identify your market
We may all dream of owning our own business, living the dream, doing a job which you are passionate about, however doing your market research first to ensure there is sufficient demand and that your product or service can stand up against competitors is vital to your future success. Once you have evidence that your market exists and shows possible growth then it is up to you (and usually a lot of hard work) to take advantage of this opportunity and put everything you have into securing your success.
Once you are confident that there is a demand for your product or service, you need to focus on building strong and healthy relationships suppliers and customers alike. These working relationship need to be honest and open to avoid any unexpected situations that could jeopardise the future of your business.
One of the most sensitive and complex issues around taking on a new business is developing your relationship with any existing employees. They may have concerns about the security of their position and the dynamics within the business going forward.
As the new owner it is really important that you make the right impression from the start. A positive attitude can have such an impact on morale as there may be concerns about the future of the business. Also make sure you are approachable and your new team feel comfortable that you are available to answer their concerns.
Making your mark
When you take control of a business it is important to make you mark to provide a steady hand at the helm. However, think carefully before making too many radical changes as your new employees will be used to working within their previous systems and making gradual changes over a period of time will be much more widely accepted than a wholesale shift too soon.
The next steps
Once you have control of the business, the hard work really starts! Your initial business plan should include realistic targets for your first week, month and year. Start to track your progress too so that you constantly monitor your progress.
Be careful not to take your eye off the ball, but equally try and maintain some perspective on the bigger picture. It can be very easy to get lost in the day to day grind of running your business and every small achievement and failure can have a huge impact. Try to remain calm and composed and ride the waves!
Make sure that you always have an oversight of every detail in the business from the ground up; it can be really important to be aware of everything going on and ensure no information is kept hidden from you.
If you're considering buying a new business we're here to help. Our experienced Accountants have bought and sold a wide range of businesses on behalf of our clients. Contact Gareth on [email protected] or call 0151 321 2340.