How to choose the right business

Buying a business is a big decision. For many, it’s a once-in-a-lifetime moment that they spend years (and years!) contemplating. The thought of being your own boss, making an impact on your customers and reaping the rewards of your hard work are generally the drivers in deciding to buy. But most people come to a halt when it comes to one thing… How to choose the right business!

Before you buy a business

Before you decide to buy a business, there are a few important factors to consider:

1. What is your skillset? Think about your areas of study and experience and what you can bring to the table as a business owner. What are your strengths and weaknesses? Is there anything you need to work on before embarking on this business ownership journey?

2. Are you financially ready? Have you spoken with your accountant or financial advisor to determine what price range you can afford? It’s important to determine your business purchase budget before you begin looking, so you don’t buy beyond your means and incur unaffordable debt. Read up on how to prepare for your business purchase with this great article by Business Australia.

How to choose the right business for you

Choosing the right business for you comes down to two areas:

1. Ticking personal boxes

· Will this business make me happy? What are the trading days and hours?

· Can I see myself involved in the day-to-day business for some time?

· Is there room for growth?

2. Ticking business boxes

· What is the potential for future success?

· Is the business in a good location?

· Is there an established, loyal customer base?

· What is the current state of the market?

· Are there any direct competitors at present?

· Is the business valued correctly? What do the historical trends show?

· Are there any big purchases/expenses/capex required that haven’t been accounted for?

If the above list seems a bit much, don’t worry. At Core Business Brokers, our mission is to find our buyers the perfect business for them. A business that meets their financial requirements, their personal goals and allows them to fulfil their lifelong dream of becoming a business owner. 

Core Business Brokers can help

Our experience in the industry means you receive the very best guidance from the beginning of your business buying journey to the settlement date, and beyond. We will talk you through your due diligence process, connect you with the right professionals and negotiate with the business seller to ensure you receive the right service and the right price.

If you’re considering a business purchase in Sydney, New South Wales or beyond, contact Core Business Brokers today on (02) 9413 2977, or email Roy directly at [email protected] or Rad at [email protected]. Our team are here to help and look forward to meeting you soon.