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.
Evaluate Yourself
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:
- Dedication
- Perseverance
- Leadership
- Entrepreneurship
- Confidence
- Self-belief
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.
Business Structure
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:
- Company
- Trust
- Partnership
- 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.
