While starting a business, whether it’s just a new idea or a ready project, problems occur. These problems are mostly caused by past mistakes which were not followed up properly and have led to current situation.
Let’s discuss those entrepreneurs who plan to buy an operating business and what kind of mistakes do they have in common.
- They hope that the intermediary agency will check everything instead of them.
The information about the business provides the seller, as he/she owns them. The agencies ensure the transaction’s safety and the buyer’s right to check the overall business by himself/herself. What to check and how is the buyer’s decision only.
- They buy a huge business. Do not buy a complicated business. Choose a basic understandable field. The business’ purposeful management may go out of control.
- They don’t encounter external factors.
Check not only the business’ internal, but also external factors which affect the current state of business.
- They buy not all of the assets. Make sure to buy the whole business. The contract should include all of the tangible and intangible assets of the business: the renting, the customers’ database, social media rights, etc.
- They believe in words. Do not believe that the business is strongly profitable until you see the proving numbers.
There are many more mistakes for sure, but these were the most common ones.
What about you? Is your business your idea, or have you bought it?