All businesses start with an idea. And some people think that good ideas make good businesses, but that is not always the case. Even if you have an original idea you feel confident with, there are many other factors that may or may not affect the outcome of your business. The risks involved in starting your own enterprise only serve as proof that it is a decision you must not take lightly.
When you start a business from scratch, you need to create a detailed business plan which will cover all aspects of the business. You will also need to devote almost all your time to it, especially in its early stages. Indeed, starting from zero means taking significant risks. But those risks may be minimised if you enlist the assistance of the right people, such as a business real estate broker. However, if you are not big on taking risks, consider your next best option:
Buy an existing business
One of the reasons that make this a great idea for first-time entrepreneurs is the fact that the existing client base can be tapped into. If you’re considering this option, here are questions you need to ask:
- What is the overhead cost, including turnover and profits?
- How many existing customers does the business have (and how many of them are repeat customers)?
- Who are the business’ suppliers?
- Does the business have any outstanding debts?
- Who are the business’ competitors?
If you think buying an existing business is a good option for you, here are tips to make the transition easier and less confusing:
- Find out whether you really are getting a good deal by seeking financial advice. An accountant would be perfect for the job.
- Run a credit check to make sure the company does not have bad records.
- Get legal advice and draw up a contract.
And remember, if even one of these things does not add up, you need to decide whether you want to continue pursuing the sale or if it would be better to drop it and move on.
There are plenty of business opportunities out there if you just know where to look. Good luck!
