10 Things Business Buyers Underestimate

1. Time – the whole process from finding your dream business to being the owner can take months and be all-consuming
2. Managing – there is a significant cost in managing the business, whether it’s done by you or paid employees; it still costs
3. Cash – buying an established business means sales from the outset  – but not necessarily cash from day one.
4. Extras – Stamp Duty, loan application fees, shelf company, IP searches ……
5. Vendor finance – sure it can be risky but it does have plenty of upside
6. Promotion – you’re buying the business because you think you can improve it; additional marketing will probably be needed
7. How complicated it can be – if it was easy to buy a business everyone would be doing it. Get professional advice and spread the load.
8. Information – you could be surprised at how little detailed documentation is available from some business sellers e.g. budgets, sales analysis
9. Spikes – one good year does not make a good business; look for growth trends and consistency
10. Staff – they won’t all stay; deal with it!