More money. Better lifestyle. Greater autonomy. That’s the dream most aspiring business owners start with. But it’s not achievable without a solid understanding of the process behind starting – and then running – your own show.
A dedicated research phase is the first essential step in getting a strong understanding of the business you intend to buy, its drivers, the returns generally experienced in the industry, the usual working structures, cash flows and over all operations.
Then ask yourself the following:
- What capacity have you got to operate a business? Will your lifestyle support being a business owner? For example, if you have young children, a business that demands your hands-on attention seven days-per-week probably isn’t going to be the best fit.
- What equity and cash have you got to put into the transaction?
- Does the business type have a bank standard lending policy?
- If you buy a business, will the annual return be sufficient to meet your financial goals and personal commitments?
With that analysis complete, it’s time to look at your risk profile and establish the potential businesses you have the capacity to buy. From there, you can narrow your choices down further, go out, make an offer and (hopefully!) get accepted. The loans process usually takes about 90 days, beginning the moment the offer is accepted and ending when settlement occurs.
Need help? At The Finance Specialists, we can guide you through the entire start-up process, from dream stage to opening day and beyond.