The number of businesses for sale at the moment in Gloucestershire is quite remarkable and you could be tempted to buy, either to increase the market share of your existing business, to rid yourself of a competitor or to fulfill a long held dream or ambition to be your own boss or work in a particular industry. Whatever your reasons, you’ll need to be sure that you’re not setting yourself up for a fall, which will involve some soul searching as well as some market research and good advice from the outset.
As Oliver Newbold from Randall & Payne, Stroud says: “If you’re buying a business in a sector you haven’t worked in, you need to gain an understanding of what your life will be like in that industry - for instance, many people like the idea of running a pub or a restaurant, but until they try it, they don’t understand fully how little time they will have outside the business. It’s also worth thinking about what you want the business to achieve - we’re experts in business strategy and in helping people to discover what their goals are and realise them.”
Oliver’s top tips for buying a business are:
| 1. |
Consider the long term |
| 2. |
Think about why you’re buying the business, what you want to achieve and where you want to be in 5 years time. |
| 3. |
Research the market |
| 4. |
There are a lot of websites offering businesses for sale - if the market is awash with businesses in your chosen sector, it might be worth wondering why. |
| 5. |
Arrange a visit |
| 6. |
People have many different reasons for selling a business, but whatever the reasons, a visit will help you decide if there are any problems and if you have the skills needed to run it well. |
| 7. |
Check the price is right |
| 8. |
Whatever business you buy, you’ll have a lot of start-up costs, so you don’t want to pay an inflated price for the business itself. |
| 9. |
Check what you’d be buying |
| 10. |
Does the offer include equipment, buildings, staff, pension schemes, client lists etc. |
| 11. |
What additional costs will be involved |
| 12. |
From replacing equipment to redundancy costs to rebranding and /or advertising |
| 13. |
Negotiate. |
Oliver’s main tip though, is to get advice from your professional advisors - they will be able to look through the figures and contracts, advise you about getting finance and legal help and may will help with the negotiations ensuring you get the best possible outcome. Above all though, they should help to keep your feet on the ground and ensure you choose your business wisely.
For more information contact Oliver Newbold on 01453
763471
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