Buying a business is a big decision to make. You will want to approach a decision like this with as much information as possible to ensure that you are making the right investment. Ask lots of questions and importantly make sure you ask the right questions. Here are some we think are important:
The business:
- What are the values of the business and the business owner? Will they align with, or support my values and what’s important to me?
- What have the results been in the business and what is the longer term plans for the business?
- How long has the business been operating? What is its history and the results?
- Is the business growing?
- Does the business have good tracking and statistics?
The day to day:
- Does the business support a good work-life balance? If so, how?
- Does the business model minimise my risk of litigation from clients?
- Is the business in a growth market that has good opportunities for growth?
- Does the business leverage technology and have good systems?
- As with any business, what are my marketing and promotion commitments?
The brand:
- What do customers say about the business?
- Is it a National / International business?
- What services does the business deliver?
The support (If considering a Franchise):
- What support will franchisees receive in relation to business administration?
- How much support will I receive to grow and market the business?
- What specifically does the business do to help me grow my business?
- What training is provided?
- Can I talk to existing franchise owners?
- Is a customised, personalised website included for me?
- Please note: if moving into any other business there is rarely any support.
The money:
- (If considering a Franchise) What are the specific upfront and ongoing fees I would have to pay?
- (If considering a Franchise) Are there conditions or additional charges to gain access to any income guarantee? How would my income be received, and how frequently?
- What are the expenses to set up and run my business?
- Is it a cash-flow positive business from the start?
- (If considering a Franchise) Does the Franchisor send leads to me and do they charge for them?
- What is the cost of the business opportunity?
- What is the earning potential?
- (If considering a Franchise) Is there a cost to go through the application process? If so, how much and is it refundable? And is it refundable if I choose not to go ahead?
The business model:
- Do I need any specific skills or qualifications to competently and successfully run this business?
- (If considering a Franchise) Do franchisees get an exclusive area?
- (If considering a Franchise) Have any franchise areas been resold and what was the outcome?
- Does the business have automated systems to help drive sales and business growth? If so, what systems?
- What is the process I will be going through to get up and running?
- What are the benefits of the business, in comparison to other similar opportunities?
- Does the business have proof of results?
Good luck on your journey!
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