2. How to Buy the Right Business for You
How to Buy the Right Business for You
The only way to make sure you’ll be successful with your new business is to be absolutely sure you’ve bought the right one. This is possible if you acquire the knowledge you need for this process.
Don’t worry, the vast majority of people have no idea what is right for them. The number of businesses for sale can be discouraging; the choice is enormous.
Here are some tips about how to choose a business that is right for you:
1) Stay Focused; Do Not Get Discouraged.
During the search phase, it is easy to get discouraged when you see the large number of businesses available. Do not be overwhelmed; approach this methodically. If necessary, exclude the businesses you do not want. For example, if you are not interested in a gas station, a restaurant, or a store, you will exclude a good deal of businesses for sale online. Look through listings, paying attention to profits, not just to the asking price. Understand that lists do not always reflect the entire image. Ask for complete information about businesses that seem interesting. Arrange meetings with vendors. Prepare the right questions that you will need at these meetings. You cannot buy a business from a list; visit this business. With each meeting, you will get closer to knowing what it is and is not right for you.
2) Develop YOUR Golden Rule.
Put together your list of five golden rules of what any business MUST have in place. Think about this and be specific. Don’t say, ” I have to enjoy what I do”…sure that’s important, very important in fact. However, if you’re in a business that you initially think you’re going to love, but you find yourself losing money, I can assure you that you’ll learn to hate it everyday very quickly!
You probably won’t come up with five rules today. Your list may even change a bit during your search. As you visit different businesses, speak with sellers and conduct your research, you may discover certain things that are added or deleted from your list. That’s OK. However, getting this list down the path as soon as possible is fundamental to your success!
3) “Whatever It Is That You Do Best…”
Next, get a true grip on your skills. Don’t pretend to be something that you’re not. The rule here is: “Whatever it is that you do best (sales, marketing, operations, manufacturing efficiencies, managing employees, customer service, selling to businesses/consumers) must be the single most important driving factor of the revenue and profits of any business you consider purchasing.” Repeat the last sentence once again; it holds the key to your success!
With business ownership, one of the main goals is for you to control your own destiny. Don’t put yourself in a position where if one employee leaves, you’re in big trouble. Your skills must be the fuel that drives the engine.
The right business for you is one that will thrive from your strengths and not suffer from your weaknesses. Take a long, hard look at yourself. Picture yourself in the business. Of great importance is that you must perceive yourself as enjoying the business. If you can’t, then there’s just no way that you can be successful. The business that you choose has to be one that you’ll be proud to own.
4) Fall in Love With the Profit – NOT the Product!
Another key factor is to avoid falling in love with the product; rather, you must fall in love with the profit and the lifestyle that it can deliver to you. Many buyers begin to dream about all of the exciting things about the business and they become delusional about what can realistically be achieved. The product that the business sells or the service that it offers, unless offensive in nature, is meaningless in the overall scheme. If the business does not produce the income you need or provide you with a satisfactory return on your investment, then rest assured, you will learn to detest the product quickly.
Likewise, a bland, boring product line can become very attractive if the business is growing and you’re enjoying the work.
Above all, come into play. Once you have the right business, you will never look back!