BUYING A BUSINESS
You have made the big decision. I am going to buy my own business in a certain industry that
I am confident I have the skill set to be successful.
What should you consider?
- Financial trading and cash flow trends and history. You should obtain at least 3 years of trading figures.
- Quality of staff and your future reliance on them.
- Rental terms for business premises.
- Key customer and supplier relationships.
- For capital intensive industries, the age and reliability of capital equipment.
- Technology and intellectual property aspects (eg. Trademarks/patents)
- SWOT analysis –Strengths/Weaknesses/Opportunities/Threats
- Select external advisors to help you appraise the situation – accountant and lawyer
And there are more…
Business is not for the faint hearted. You need to be confident you will succeed and be
better off financially and emotionally than you were in your previous endeavours.
If you proceed give it your best shot, it can be rewarding to control your own destiny.
In any event, you need to discuss the potential business with your accountant……
Copyright Rede Accountants 18 February 2022