Before getting into business you will need to find what type of business you believe you are qualified to run and would enjoy owning. This should be based on your own skills, interests, personality and location (unless it is an online business) but in saying that you should still take an interest in the business overall. Working out this first hurdle will help you determine which type of business will provide you with the life style you desire, and hopefully turn a profit in your new business venture. Finding a business to purchase should be the final step in a process that begins with self-evaluation and a deep financial assessment.
When you have established a budget and the location you would like to be in, you should start searching for businesses for sale in local newspaper advertisements and online websites. In most metropolitan areas, the Weekend papers will have a large 'Business Opportuntiy' or 'Business for Sale' section and you can contact owners directly. Alternatively, you can also place an ad stating that you are looking to purchase a specific type of business.
Some websites these days even allow you to sign up for free and create a business wanted profile or even set alerts for the type of business you are looking for, this can be a great tool when looking to find your business of choice.
You can save your self considerable headaches by buying businesses which are already established, its always easier and safer then starting a business from scratch, not only that a huge saving of your own time.
Statistically a large number of start-up businesses will fail within the first 12 months, with those surviving often being sold to have their new owners make the real gains. So let the hardened entrepreneurs take the risk, develop the market, and find out what works and what doesn't. In buying an existing business you are getting;
(1) History Of the Business
The previous owner has operated this business and will be able to show you it's financial records, it's cash flow, sales and expenses. All this lessens the risk to you and your bankers, showing the companies performance and providing you with a platform on which to build.
Before starting out decide what you want, what your objectives are, and understand your strengths and weaknesses. Plan the process. This can also be found by looking up the businesses ABN using ABN lookup or other online tools
(2) The businesses database
These are the people or businesses that already do business with you. This means cash flow from day one.
(3) Existing products or services.
They have already been developed and accepted into the market place.
(4) Existing employees
Experienced and skilled staff who understand the business and it's customers, most valuable to any going concern. Save time recruiting new members of staff.
(5) Operating Systems
These are key in any business activity. How the business operates, what keeps the customers coming and the cash flowing? This ties everything together. It's your business formula developed by the previous owners; it may be perfect, or it could be in need of major changes.