In Show 153 – 5 Things to Think About When Buying a Business originally broadcast on Facebook Live on 1 December 2018 we explore this interesting topic.
Everyone wants their business to grow and expand. One of the quickest ways to do that is to simply buy another business. Today on Fast Fix Monday we present the top five things you need to consider before doing that.
1. Due Diligence
This is probably the most important thing you have to do. Due diligence involves examining the business you’re thinking about buying. Corporate structure, tax compliance, customers, suppliers and employee records all have to be examined.
2. Is this the best option?
Why do you want to buy the business? The name? The assets? Their clients? Determine what you want to get from the purchase and figure out if there is another way to get that.
3. Get advice
If you try and use a scattergun approach to marketing it’s going to get very expensive. When you have a clear idea of who you want to target with your marketing you can spend more wisely.
4. Is the lease right?
Make sure the conditions of the existing lease will work for you. Can the lease be transferred? Will you have to move? Getting those details correct is incredible important
Do you want to take on the existing employees? You need to make sure that the purchase price takes into account things like employment contracts and liabilities.
#expansion #growth #smallbusiness #duediligence
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
Twice a week we are going to deliver those tools right to your home or office with Business Legal Lifecycle TV. We’ll start the week with Fast Fix Monday, a short 5-10 minute video that will tackle a single issue that businesses have to deal with. Then on Wednesday’s our main show will feature with more fulsome discussions and interviews all delivered in a straightforward and easy to understand format.