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Suggest You - Should You Buy an Existing Business?
It struck me the other day during lunch at a local Moe’s Southwestern Grill that a new phenomenon has swept the restaurant landscape in the form of poor attempts to differentiate from the competition—renaming accepted terms of business with cutesy nicknames. This is readily visible in the faster food sector, and it’s becoming more prevalent as companies struggle to connect with
Buying a business is sometimes like buying a second hand car or house - there are inseen flaws.
After you take over, you may find that the premises are not really as suitable as you thought - they might be in the wrong place, have the wrong equipment
Let me start by admitting that if you’re an accountant in training, you should definitely consider working for a large firm. Two or three (or more) years working for a large international or national firm give your resume an extra burnish. You will probably receive a higher salary and more training. Plus, your stint at a large firm can be another personal pedigree—equivalent to a
A major appeal of buying an existing business is speed - the business is a going concern - hopefully, revenue will come in from day one. There is little inconvenience: no looking for suitable premises, choosing equipment or finding new customers and suppliers.
A second and important advantage is that if you have selected your business well, you will have a sound base from which to expand, innovate and perhaps change direction.
Starting from scratch, it often takes three to six months to reach a viable sales level. An existing business will have a track record. You can look at past sales records and have an accountant check out its financial viability.
When starting from scratch, the risk is greater, market research can provide good estimates of potential reveneur - but it cannot guarantee it!
There are disadvantages, however. Starting from scratch can be cheaper, as you are not paying for goodwill. Also, you can often more easily obtain exactly what you require in terms of premises, location, equipment and so on.
Buying a business is sometimes like buying a second hand car or house - there are inseen flaws.
After you take over, you may find that the premises are not really as suitable as you thought - they might be in the wrong place, have the wrong equipment
Business organizations, small or big, have to maintain all the relevant information in the form of books and records. These documents are required for their internal use as well as to comply with various statutory provisions. A well designed business form helps to achieve these goals. Thus, business forms are considered to be one of the most effective tools for any business.<
A second and important advantage is that if you have selected your business well, you will have a sound base from which to expand, innovate and perhaps change direction.
Starting from scratch, it often takes three to six months to reach a viable sales level. An existing business will have a track record. You can look at past sales records and have an accountant check out its financial viability.
When starting from scratch, the risk is greater, market research can provide good estimates of potential reveneur - but it cannot guarantee it!
There are disadvantages, however. Starting from scratch can be cheaper, as you are not paying for goodwill. Also, you can often more easily obtain exactly what you require in terms of premises, location, equipment and so on.
Buying a business is sometimes like buying a second hand car or house - there are inseen flaws.
After you take over, you may find that the premises are not really as suitable as you thought - they might be in the wrong place, have the wrong equipment
You’ve had your eye on that promotion for some time now. You’re bound and determined to get out of your office worker status into a supervisory position you’re certain you’re well suited for-- but apparently no one else is convinced. You watch others from your work group move on, out and up, and you’re getting seriously depressed. “What’s wrong with me?” you wonder. All your supe
Starting from scratch, it often takes three to six months to reach a viable sales level. An existing business will have a track record. You can look at past sales records and have an accountant check out its financial viability.
When starting from scratch, the risk is greater, market research can provide good estimates of potential reveneur - but it cannot guarantee it!
There are disadvantages, however. Starting from scratch can be cheaper, as you are not paying for goodwill. Also, you can often more easily obtain exactly what you require in terms of premises, location, equipment and so on.
Buying a business is sometimes like buying a second hand car or house - there are inseen flaws.
After you take over, you may find that the premises are not really as suitable as you thought - they might be in the wrong place, have the wrong equipment
When it comes to successful Yellow Pages advertising, there are sales and marketing theories galore. Witness the recent explosion of Yellow Page consultants hawking CD’s, tapes, manuals, seminars, textbooks ... you name it! My God, you’d think we’re in the midst of a Yellow Pages advertising renaissance!On the surface, this seems like a good thing for the long-neglected Y
When starting from scratch, the risk is greater, market research can provide good estimates of potential reveneur - but it cannot guarantee it!
There are disadvantages, however. Starting from scratch can be cheaper, as you are not paying for goodwill. Also, you can often more easily obtain exactly what you require in terms of premises, location, equipment and so on.
Buying a business is sometimes like buying a second hand car or house - there are inseen flaws.
After you take over, you may find that the premises are not really as suitable as you thought - they might be in the wrong place, have the wrong equipment
- Resume Lies and Half Truths -According to the resumes that are distributed to large corporations and small businesses, only good guys look for jobs. This seems to be especially true in the Information Technology field. You will never see a resume that shows that a project was cancelled, or that the programmer was removed from a project due to his inability to
Buying a business is sometimes like buying a second hand car or house - there are inseen flaws.
After you take over, you may find that the premises are not really as suitable as you thought - they might be in the wrong place, have the wrong equipment and there may be not sufficient room for expansion, eg. planning permission cannot be gained for an extension.
Buyers new to business often make he mistake of relying too heavily on the past accounts of the business for assurance that it is a viable concern. 'Let the buyer beware' is a saying worth remembering. The problem with records is two-fold.
First, the records refer to what has happened in the past - there is no guarantee that the business will continue to be a success in the future.
For instance, the previous owner's business may have been based on personal reputation - when he goes so does the business. I know of a young couple who recently purchased a small hotel, the accounts of which showed good past trade.
The previous owner purchased another hotel in the same vicinity and took his regular clientele with him. The young couple are now in the position of having to build up their clientele from scratch and as a consequence have serious cash-flow problems.
Secondly, accounts can conceal as much as they reveal, and depend for their accuracy on the honesty of the owner of the business. It should also be noted that the accounts do not give the full story.
For instance, they do not tell you whether double yellow lines are going to be plac
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