Having identified some of the potential benefits, let’s take a closer look at some of the risks associated with buying a business.

LOCATION: The business could be located in the wrong premises, and new premises might be required to ensure ongoing success.
LEASE: The rental may not be market related and escalation per annum too high. The lease could also contain very negative terms & conditions.
PROBLEMS AND LEGACY ISSUES: You may be taking over major problems that the previous owner has created and/or has not told you about. E.g. a key customer leaving!
When looking for potential business there are a number of ways you can source prospects. You could:
  • Look in newspapers under the businesses for sale column,
  • Place an advertisement in the newspaper,
  • Search on the internet,
  • Contact a business broker,
  • Contact other agents,
  • Speak to family and friends (for their contacts) or
  • Directly canvass businesses that appeal to you.
 Don’t buy what the broker wants to sell you just for the sake of buying a business. Look for and get the business you want and deserve. It probably won’t be 100% of what you want, but then why would you buy a business that you do not feel you can grow and develop?

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