Buying a business on one of the greatest financial decisions a person can make. It can lead to great financial success or great financial failure. Author Kyle Carins explores three factors to consider when buying a business in his July 2019 article from Smallbusiness.co.uk. Here are the three factors covered in Carins’ article, “3 Things To Consider When Buying A Business”.
Appeal vs. Viability
The most important variable for most buyers is that the business is viable. If you cannot differentiate between an appealing business and one that is viable it can lead to financial disaster.
Carins points out, “Do you want to make money or do you want to fulfill a dream?” At times those two variables can intersect, but not always and not often. It is vital to know whether a given business is potentially lucrative.
Carins also points out that it is also important that you choose a business that you will enjoy. Even if a business is lucrative, nothing can be more disheartening than running a business that you truly hate. Selecting the right business is something of a balancing act. It must take in a variety of often competing variables.
Considering Hidden Costs
Hidden costs is the second factor that Carins talks about. This is a key reason to work with a business broker. A business broker understands these kinds of factors that you might overlook. Due diligence is very important. Working with a business broker offers substantial protection against making a serious mistake.
“Getting a second opinion” is the third factor examined by Carins. He links getting a second opinion to due diligence. He feels that additional opinions regarding a given business should go beyond working with professionals. It should include talking to friends and family who know you well. Opinions can help you see angles that you might otherwise miss.
Buying a business is a complicated process and will take up a good deal of one’s time and mental energy. Your friends and relatives input can be particularly beneficial. They understand your personality and your wants and desires.
EBIT Associates has years of proven experience. We can help you determine whether a specific business is a good fit for you and your lifestyle.