Please find detailed below very important points to consider when you have decided to go into business and are not sure what to do next, or even where to start.
1. Should You Buy an Already Established Business?
An important question you need to ask yourself is whether or not you should buy an existing business or start up a new business. Both have Pro's and Con's. Buying an already established business is the fact that someone else has done all of the hard work needed to develop a new business. This business would have established clientele, systems and staff in place and most importantly a steady turn over. The negative side to acquiring an established business is you will pay a premium price in comparison to starting a business from scratch. This needs careful consideration. One will be financially draining and the other will be physically draining. The choice is yours.
2. Some of the following points need to be taken into account when purchasing a business:
- Business Valuation. What is it?
- Are there any major clients who account for a large portion of the business? (This is an important point to consider because you need to know that the company does not have all of their eggs in one basket
- What exactly are you buying? Goodwill, Structure of the business or both?
- Are the existing staff prepared to remain working for you?
- Pending legal issues?
3. Business Planning
From the very first day of business you should have a plan in place. You should set goals as to where you want the business to be in 1 year, 5 years or 10 years and how you are going to get there. See some important points below to help you achieve these goals:
a) Business Plans - Having a business plan in place will give you some direction. Setting yourself goal and achievements will keep you and your business on track. A business guide will make sure your business is successful and will also assist in obtaining business finance.
b) Business Marketing Plan - Business marketing plans will point you in the right direction as far as marketing and advertising campaigns. Knowing what works and what doesn't work is crucial and will save your business thousands of dollars.
c) Business Analysis - Keep track of your businesses strengths and weaknesses, opportunity and competitors.
d) Business Budget - Having a budget in place is vital for any business. Making sure you do not spend over your budget could be the difference in succeeding and failing. It can also be used for comparing your current budget results to your year to date budget results.
For more information on buying a business please visit http://www.business-sale.com.au - Australian business for sale classifieds.