Buying a business can be a very good opportunity to get into an industry without going through the startup process, which can be time consuming, costly, and comes with no guarantees.
That being said, a business that is for sale is like a used car. There are lots of companies out there but only a select few are worth purchasing. Due to this, it is very important for people to do their due diligence and investigate whether or not the business they are interested in has potential.
Owning a company is certainly not for everyone. It is up to individuals to make sure that they have considered all available options before making the ultimate decision to be their own boss. Therefore, it is important for a person to identify their weaknesses and strengths. It is always a great idea to jot these down on paper.
Aside from listing your professional achievements, strengths and skills, you should also note your personal characteristics. These play an important role in achieving success in the business world. This also allows you to compare your traits with the attitudes that make a good business owner. Some of these attitudes include the following:
A person who does not have these attitudes should try their best to develop them. If not, you may need to reconsider owning your own business.
As a potential buyer, you should consider the business structure prior to purchasing a company. This is because there are taxation considerations and protection issues that need to be shored up. Some of the possible business structures that can be adopted include the following:
- Sole Trader
- A combination of a trust and company structure
A potential buyer should always remember that each kind of structure described attracts ongoing compliance costs, setup costs, personal risk and tax rates.