Are you unsure of the type of business that you would like to buy? It is important for you to find a business that interests you, fits your lifestyle. If you do this, there is a much higher chance of your business being successful. We have put together a list of factors that may help define your buying criteria. Keep reading to learn more.
1. What Are Your Purchase Price and Terms?
The purchase price is the first deciding factor, but it is an important factor nonetheless. You could find the perfect business right in line with your lifestyle and location preferences, but if you can’t afford it, none of that will matter. For this reason, you should have an idea of how much business you can afford from the outset.
However, just because a business is more expensive than you’re comfortable with doesn’t mean you can’t buy it. That’s where the terms come in. There are many buying arrangements you can make so that a business deal is feasible for your means. Research all your financing options thoroughly in order to see the best one for you.
For example, a business seller may offer seller financing. There’s also the possibility of getting a bank loan to help with your acquisition.
Overall, you should be aware of both the price and terms that will work for you in the near term and long run.
2. What Are Your Skills and Strengths?
Everyone has things that they are better at. When buying a business, it is important to know exactly where you will fit into the equation. If you will be enhancing a business you’ll buy, you should know how you’ll do that. You might be excellent at marketing or computer programmer. How could that strength fit into the business you’ll buy?Another consideration is: Does the business need a strong management presence? If you want to be a passive investor, you’ll need to be willing to hire top-notch management personnel if that’s not already in place. The point here is finding a business where your knowledge and expertise will add value and equity to the business.
3. What Is Your Industry and Target Market?
Once you have decided on your strengths, you now need to focus on researching your preferred industry or niche. Each business is different and will thrive under very specific conditions.
It is also important to understand the likelihood of capturing market share in a given industry based on current market conditions. You should research market dynamics (like a changing neighborhood or regulations) and how this will impact your business.
4. Select Your Location
These days, you can find a business almost anywhere with the help of technology. However, you’ve got to know the locations where you will be comfortable operating your business. Are you planning to relocate? If not, you’ll likely want something local.
Also, the industry you choose may also have a bearing on the location. There are some businesses that do well in some regions, but not so well in others. Take these points into consideration and select your location preferences so your buying criteria are specific enough.
5. What Are Your Lifestyle Needs?
Buying a business does not mean that you have to give up your current lifestyle. There are business models that work well for each type of business and lifestyle objective, so you’ll want to choose one that fits your preference accordingly. To find a business that corresponds to your lifestyle, you will need to consider the following factors:
- How much involvement do you want to have in the day-to-day operations? Are you going to be hands-on or more passive?
- Is your business a way to support your family or do you want it to grow into a major corporation?
- Will this business complement or augment an existing business that you own?
Contact us today to find the best business for you.