Posted by
Tim Green Commercial
on 04/05/2011
Your favourite cafe is up for sale. The current owners say that
they're moving up the coast in search of a more relaxing lifestyle.
It's got prime positioning amongst some of the best commercial
property in Surry Hills. You know the place is packed every weekend
- after all, it's got THE best banana bread in the country - and
the management of the place has been excellent, so why not
invest?
Businesses for sale offer a great opportunity for many potential
owners. Because the groundwork has already been done, it seems easy
for a new owner to swoop in and just keep things running smoothly.
Alternatively, if a business is failing but shows promise, a few
simple changes can turn it around. Before you decide to give owning
your own business a go, here are some points to consider on what
makes a business for sale a worthy investment.
Location Location Location - first and
foremost, consider the location of your potential new digs.
Obviously, if the previous owners have been successful, the
business should have some prime positioning. Also, look for new
opportunities that may not have been available when the business
first opened. For example, are there new developments or office
space going up in the area that could change the dynamics of your
customer base? It's also advisable to determine what terms are
currently set out in a commercial lease and when it is due for
renewal.
Why selling - always inquire as to why the
owners are selling. Some will just be looking for a new lifestyle
or focusing on different opportunities while others are abandoning
what they perceive to be a sinking ship. Gain some insight on the
owners' experience with the business and if it is failing, consider
what changes you could implement to bring it out of the dregs.
Experienced Staff - are the operations
currently under management and will the staff come over with the
sale? Well trained staff members are important as they help ease
the transition of acquiring a new business as they will be familiar
with the inner workings of daily operations. Alternatively, if
business hasn't been going so well, consider hiring new management
and advertising this change prominently.
Your Own Experience - even if the business
comes with qualified staff, consider the breadth of your own
experience in running the business. You don't always need to have
worked directly in that field (but of course it helps!), but
consider what relevant experience you might have in managing or
running a business of this capacity.