29 May 4 things to consider when buying a service-based business.
You are ready to buy a service-based business and start to build the life you’ve always dreamed of living – Congratulations!
Buying an existing business can provide the lifestyle that will give you the flexibility to meet your needs and live your life on your terms. Before you choose which business to invest in, consider these four factors to avoid any surprises:
Which industry are you most interested in? If you are considering an industry that involves technology or technological growth look into what you already know about the growth and life cycle. First, ask yourself if there are areas that you will have to learn or study so you are prepared to make that commitment. Next, consider if you can learn on your own or if you will have to go back to school to upgrade your existing skills. Make sure you have the time and the funds to invest if you need to invest time and money taking courses for your new role.
If you are moving into a new or established business consider the reputation of the industry and the industry leaders. Is the reputation stable or controversial? Either way, create strategies to deal with customers if challenges come up so you are as prepared as possible.
Do a review of the business to see what is included in the day-to-day operations and which pieces (if any) are outsourced or omitted from the current offering. Once the business becomes yours you can make changes to these operational pieces but it may cost more to bring some services in-house rather than outsource them. If you want to make changes, be prepared for those changes by factoring them into your financial picture.
Do your research in the industry – what is the value of the service or product currently and what is the projected value of the product or service? Are you taking on an industry that is showing growth and stability or is the longevity questionable? Will you be able to garner the results that you are expecting? Ensure to do some long-term projections to see what the 5 or 10 year results could be.
Becoming a business owner is a very exciting step in your life! It is worth taking the time to do your homework to make sure you are prepared. There will be unexpected twists and turns but the best thing you can do is be educated so you handle those twists as they arise. The experts at A R Business Brokers have helped many entrepreneurs realize their dream of becoming a successful business owner and are here to help YOU through the process as well.
A R Business Brokers Inc. is interested in business owners looking to buy or sell a business in the GTA and surrounding areas. If you are considering reviewing your options contact us today at firstname.lastname@example.org or 416.333.7999 or visit www.aldrin.ca. We look forward to connecting soon.