When buying a business how do you tailor it to your specific needs as terms of making it successful and earning an excellent profit.
I would focus on:
- What is currently working well? How can you leverage those successes and grow the business utilizing those assets?
- What isn't working well? How can you revamp those features or programs, or divest them, freeing up time and resources for other more impactful proceses or programs?
- What are you most passionate about? How does that align with your business model? Spend your time working on the things you're most passionate about that will help drive awareness, customer trial, and retention.
- What are you really good at? Take on those activities yourself; for those you need some more specialized skills in, hire someone with experience you can rely on
-What have similar businesses or similar sized business in other industries done to differentiate themselves from competition? How can you replicate some of their more successful moves and decisions to grow your business, acquire and retain customers, etc?
-What are the most important needs your customers has? How can you service them better than you competition?
When you are searching for a business to buy, here are some basic to investigate:
- Go to the business and observe the business, see how's their day to day operation. Make notes of things that you like about this business and things that you don't like about the business, and what kind of changes that you will do if that is your own business.
- Then meet with the owner, finding out the reason that the owner want to sell the business. Chat with the owner to learn about his success with the business as well as learning the challenge of the business.
- Location! Is this location convenient for you to get there everyday. How busy is this location for that particular kind of business, who are the competitors within 3 miles radius. Make notes of how can you be different that those competitors.
- Review the accounting book, cost of running the business, and the annual revenue, and best if you have more than 2 years.
- Human resources: Are you knowledgeable in that kind of business? Who will run the business? Who are you going to hire, and with what kind of qualification and how much should you pay each employee? Benefits for employees?
Here are a few areas to consider:
• Is this a business type that you have a passion for?
• Does the business have a positive cash flow now?
• Is the monthly cash flow claim reasonable and realistic?
• Is there an available business plan that has been implemented?
• Validate legitimacy what is claimed as the business value?
• Why is the business up for sale?
• Do the terms to purchase meet your financial goals - long and short term?
• Who do you know in the business that you can trust for advice?
• Is there an out clause contingency and term?
I applause you for the desire to own your business. Remember to keep your life in balance. It is more than your work.
While there is no single Golden way of making a business profitable, I would suggest it is a combination of marketing and financial acumen.
Marketing is is used to develop popular products that will sell in the market place, positioning both your products and company in the marketplace, and promoting your products and firm through advertising.
Financal acumen men comes into play to ensure you set attainable goals and reach those goals. A good financial analyst will be able to earn you when the firm is not reaching its goals and of expansion is happening too quick. Monitoring the performance of your firm is vital to continued success.