Owing your own business can be one of the most rewarding things you can ever do it can also be one of the worst decisions you ever make. It is a big step and one that should not be done without first fully educating yourself on everything that is involved in running a business.
The most common reasons cited for going into business for yourself include –
Before you jump into a business have a chat to one of our consultants to help you understand the process, determine what type of businesses fit your needs and to identify any skills or resources that you will need prior to entering business ownership.
Before you start you need to be very clear on the reasons why you are going into business and aligning your business with your long term goals is critical.
Engaging a great support network around you will also be critical to the success of your business.
Decide what sort of industry you are looking at getting into. Have a chat with a trusted adviser or business consultant to establish your 1,5,10, & 15-year goals and decide the type of business that will suit your lifestyle and personality
Talk to a finance broker to understand your borrowing capacities. It is no good spending 100’s of hours looking for a business only to find out you can’t afford it.
Chat to a business broker to help locate your perfect business. You can now spend your time researching the businesses that become available. If you don’t have the time to look for a business, you can often engage a buyer’s advocate to find you the right business.
Your business broker and coach are valuable resources that you should use to understand the fundamentals of the businesses that are available for purchase. There will be thousands of potential businesses and it is wise to spend some time evaluating the financial and cultural elements of potential businesses to find one that fits you. Asking the right questions and doing the research at this time will save you a lot of time and potentially money in the future.
You or your broker will need to complete a written offer, often called an Expression of Interest (E.O.I). This will detail the price, terms and the conditions for the purchase of the business. It is normal at this point to also engage a lawyer to ensure the conditions set out in the EOI are covering your interests.
Once your EOI has been negotiated and accepted, these details will need to be transferred to a contract of Sale. Once executed you will pay your deposit and ensure that all of the conditions in the contract with the vendor are satisfied. You will also complete any due diligence required at this time.
A settlement will be booked once all of the conditions have been satisfied. Your lawyer will book a time to settle the business for you. You or your broker will need to coordinate with the vendors, accountants, and lawyers to ensure that the Settlement is completed. Once the settlement is complete, the business is yours and you are away!.
At this point we highly recommend using a Business Coach to keep you motivated and OnTrack in achieving your long term goals.
If you need guidance to grow your business or if you are planning to Buy or Sell your business