Know Your Market
You need to conduct extensive market research before you buy a business. Is the location saturated with similar businesses in the area? Are new competitors opening up in the same area or is there a major development planned that could restrict access to the business for an extended period of time? You should also search the business’ local reputation on websites including www.womo.com.au or www.yelp.com.au.
Most importantly, is there potential for growth? Is there new technology or products on the horizon that could impact on the industry? The past is no guarantee of the future and just look at what happened to Borders and Kodak as examples of why you need to adapt to technological change. Understand your competitors and their point of difference. What additional services or value could you offer customers if you proceed with the purchase?
In summary, sourcing the right business to buy at the right price can be challenging but rewarding. In the process you need to conduct an honest assessment of your skills, industry knowledge and financial resources before you head down the acquisition pathway. Research your market and the reputation of the business and have a plan on how you can grow the business. Most importantly, before you commit to any purchase please contact our office to discuss your plans.
For more information on the local market contact firstname.lastname@example.org