The following points are worth considering before you purchase a business:
- The first, fundamental step in the process of considering which type of business to purchase, is to assess what you would like to get out of the business and compare this against what you will realistically get from it.
- Are you familiar with the market or industry that the business operates in? Do you have knowledge and/or experience in the field or will you need to rely on others?
- Research the market/ industry, and learn about who your competitors will be in that field. Familiarize yourself with the rules and regulations that apply to your prospective business.
- What will be the strengths and weaknesses of the business? Which areas of concern can be improved upon?
- How much time and energy will the prospective business require and can you meet its demands? Alternatively, can you afford to employ someone to manage the business for you?
- Consider the past and future performance of the business – obtain financial accounts to look at the past performance and to identify any room for improvement which will help predict future performance. If you can afford the extra cost, then it is worth considering having a due diligence exercise carried out on the prospective business.
If you are considering buying or selling a business and would like further information or assistance with the process then you can get in touch with one of our Solicitors in the Commercial department who will be happy to help.