Before you commit to buying a business it is important to know what to expect. Taking time to reflect on what owning a business will mean for you and your family is critical. Not everyone is ready to invest the time and energy that owning a small business demands. You need to understand how you will finance the purchase, as well as whether you have the right skillset and ambition to succeed.
Once you've decided you're ready, you then need to find a business that suits your finances, abilities, goals, and preferred work-life balance.
- What is your preferred industry(s) and do you have the skills and knowledge to be successful in running a business in that space?
- How many hours are you willing to commit per week? Many retail businesses operate seven days a week, restaurants are almost always open in the evening and as the owner, you will likely be on call 24/7.
- Is the business well located geographically (potential for growth, distance to travel to and from work, customer access, etc.)
- Do you have a preferred business model (wholesale, retail, distributor, on-line, etc.)
Remember, some offers seem too good to be true because they are. Be sure to conduct due diligence with help from your accountant and lawyer before committing to a purchase.