So, you are looking to buy a business? But how do you know which business is right for you? There are thousands of businesses on the market at the moment, and it can be a little overwhelming trying to suss out which will be a good investment for you. We understand this, and have spent a long time in the industry. Using our expertise and knowledge, we’ve created a useful checklist of things to take into consideration to support you on your journey to find the ideal business.
Choose an industry you are passionate about
It’s a good idea first to figure out the type of industry that suits you, to help you narrow your initial search. There may be a couple of different industries that you are keen to look into. Try to choose those which link to your skills, knowledge, and passions. Which industries match your values and goals? That’s a good place to start. If you choose an industry that matches these, it’s really going to help you to put your heart and soul into the business. Ask yourself some values-based questions to support this, such as “what do I really care about?” and “what really takes my interest?”
Do your research
It’s really important to ensure you do a lot of research first, before deciding on a business to go for. Once you have decided on your industry focus, there are a lot of other factors to think about too before going ahead with the final decision. Research can help you to not only get to know what options are available to you in your chosen sector, but also which businesses are doing well, and how other businesses in the industry operate. Google and social media are your friends here! Research will help you go into the industry as confident as possible. As part of your research, customer reviews are always a helpful indicator on the vibe of the business. If a business impresses you at this stage, you are certainly off to a good start.
Think long-term
It can be easy sometimes to focus on the current crazes or what’s popular in the market right now. But if you are wanting a business long-term, it’s important to think about if certain businesses will continue to progress or are more of a short-term fad. Try to see the business holistically. Has the business continued to grow year or year? Does the business also have a market that can expand, or is it restricted by certain factors?
Know your limits
No matter how amazing a business opportunity may seem, it’s important to recognise what fits your financial and personal limitations. It’s essential to know exactly what your budget is and look for businesses that match this. It may be tempting to look into those which are over budget and exceed your financial limit, but it’s wise to look for businesses that are within reach of your financial abilities. Personally, it’s important to think about the sort of demand each business will have on you and your work-life balance. For instance, a new start up business may require a lot more time and effort than a business that is already established.
Look out for red flags
There will be certain factors about a business which could indicate bad news. Look out for potential red flags that could indicate a business is not doing well or is struggling with certain aspects. It’s important that you listen to your gut regarding red flags, because these could be signs that a business may not be the best option for you. Some potential red flags can include the business struggling to compete with its competitors, the owner and staff seeming exhausted, or financial records showing a loss.
Get support from the experts
It’s a good idea to seek out professional help when needed, to support you through your acquisition journey. Loved ones and those close to you can be helpful for the more informal opinions, if you feel these would be helpful. Loved ones often know you better than anyone, and so their opinion is important. But it is also useful to have a professional team behind you; a solicitor, an accountant, and a change management consultant. These professionals will help to ensure your accounts, books, and paperwork are all in order when purchasing your business.
Yorkshire Change
At Yorkshire Change, our aim is to make the process of business as easy as possible for you. Whether you’re buying a business or have decided you would like to sell, we are here to support you. Our team of experts and consultants are all exceptionally knowledgeable and can support you through your own unique change process. We can assist you with finding your ideal business and help you manage the big changes that come along with it. To speak to a dedicated member of our team, please fill in the contact form on our website, or call 0333 090 8710.