Buying a Business Ep 8 – 5 More Top Tips of What to Watch out for When Buying a Business
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Show Notes
Shaz shares five more great tips on buying a business with all ten providing a good starting point for anyone looking to buy a business for the first time or considering buying another business.
In the previous ‘Buying a Business’ episode, Shaz covered goals, knowing your limits, financing the purchase, sellers motives and having an understanding of the industry.
Add the tips in this episode for a great list of the top ten tips you need to work through when buying any business.
KEY TAKEAWAYS
- You need to have knowledge about the business and how it is performs
- Look at whether the business has been meeting its targets, costs and net profit
- Ideally, benchmark the business against competitors in the area
- Look at whether the business has good systems and processes
- Does it rely on the owner or does it operate well without them?
- A business that is systemised is worth more than one that isn’t
- If its heavily reliant on the owner a business isn’t worth as much and can be an opportunity for a discounted deal
- Be aware of all the liabilities of the company
- Be very clear on your plan, this will help with negotiation and having clarity may make you the preferred purchaser
BEST MOMENTS
‘Looking at the balance sheet is crucial ‘
‘Make sure you do your due diligence
VALUABLE RESOURCES
ABOUT THE HOST
Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultation he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.
He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.
You can find Shaz on: