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Buying A Business With Confidence

16 Nov 2022

BUYING A BUSINESS WITH CONFIDENCE

Reasons for Buying a Business

  • To have their own business – rather than work for someone else
  • A change of career
  • As an investment
  • Add to an existing business

Why is it important to Buy a Business with Confidence?

  • There are very few ‘major’ purchases the majority of people make in their lifetime
    • House (hopefully an increasing asset)
    • Car (easily changed)
    • Business (only increases in value with hard work – and its success is the basis behind the other two above)
  • A very expensive mistake if not properly thought through – with possible knock-on effects
  • As you would with a house or car, determine in advance how much you are prepared to spend on a business, and how you are going to finance this
  • Don’t forget you will need some initial capital to promote the business
  • Prepare or get prepared for you a profit forecast and cashflow forecast for the business for the next 1-3 years (and don’t forget to include your financing repayments)
  • Also work out your weekly/monthly breakeven position – what you have to take to survive

Buy a Business with Confidence – ensures:

  • Greater opportunity for success
  • Less opportunity for mistakes
  • Money well spent
  • Greater return
  • Easier to sell the business at a later date – as you know it is marketable

Arguably as a Result – Buying A Business With Confidence

Will create a More Enjoyable and Successful Experience