|
Buying a Business
One route which many people have successfully
taken into starting a new venture is to buy an existing
business.
Businesses are sold for a variety of reasons –
retirement, ill-health, other business interests,
financial problems, owner moving abroad or simply
because the vendor wants a change. Acquiring an
existing going concern provides many opportunities
for a potential new business owner.
For example you will be taking on an existing customer
base and cashflow from day 1. Where appropriate,
the business will also come with staff, equipment,
premises, vehicles, stock, trade supply accounts
and usually a very co-operative vendor who is only
too willing to provide support and handover for
the first few weeks or months.
Alternatively you may wish to start a business
but are struggling to come up with a viable business
idea. Your skills may lend themselves well to financial
planning and control, marketing, management and
sales but if you don’t have a product or service
to trade then you can put your energies into a business
already established and into which you can inject
your experience and enthusiasm.
Buying a business doesn’t necessarily cost
more than starting from scratch and over a period
of 2-3 years may actually cost you less. For example
a quick search on one of the main business for sale
websites reveals over 2,100 businesses in the UK
with an asking price of £25,000 or less; ranging
from manufacturing to service and retail businesses.
Of course there can be many pitfalls and obstacles
to an acquisition and you will need a clear head
and sound advice along the way. As well as SYOB
we would recommend Business Link as an excellent
starting point and many of their services are free-of-charge.
Many businesses are sold via Business Brokers (or
Business Transfer Agents) and the best of these
can also provide good quality advice and assistance
in the buying process. Anderson Moore have been
advising business buyers and sellers since 1997
and have just launched The Business Bureau specifically
aimed at small businesses with a turnover of up
to £250,000.
So, if you are considering a new venture do not
overlook the opportunities that taking over an existing
concern can provide. Make business acquisition one
of the many items that you consider when planning
a new business enterprise.
Keith Green – Partner
Anderson Moore Business Consultants
Return to
previous page
|
