One route which many people have successfully taken into starting a new venture is to buy an existing business.
One route which many people have successfully taken into starting a new venture is to buy an existing business.
Businesses are sold for a variety of reasons – retirement, ill-health, other business interests, financial problems, owner moving abroad or simply because the vendor wants a change. Acquiring an existing going concern provides many opportunities for a potential new business owner.
For example you will be taking on an existing customer base and cashflow from day 1. Where appropriate, the business will also come with staff, equipment, premises, vehicles, stock, trade supply accounts and usually a very co-operative vendor who is only too willing to provide support and handover for the first few weeks or months.
Alternatively you may wish to start a business but are struggling to come up with a viable business idea. Your skills may lend themselves well to financial planning and control, marketing, management and sales but if you dont have a product or service to trade then you can put your energies into a business already established and into which you can inject your experience and enthusiasm.
Buying a business doesnt necessarily cost more than starting from scratch and over a period of 2-3 years may actually cost you less. For example a quick search on one of the main business for sale websites reveals over 2,100 businesses in the UK with an asking price of £25,000 or less; ranging from manufacturing to service and retail businesses.
Of course there can be many pitfalls and obstacles to an acquisition and you will need a clear head and sound advice along the way. As well as SYOB we would recommend Business Link as an excellent starting point and many of their services are free-of-charge. Many businesses are sold via Business Brokers (or Business Transfer Agents) and the best of these can also provide good quality advice and assistance in the buying process. Anderson Moore have been advising business buyers and sellers since 1997 and have just launched The Business Bureau specifically aimed at small businesses with a turnover of up to £250,000.
So, if you are considering a new venture do not overlook the opportunities that taking over an existing concern can provide. Make business acquisition one of the many items that you consider when planning a new business enterprise.
Keith Green – Partner
Anderson Moore Business Consultants
Business Sales – Valuations – Mergers, successfully selling businesses since 1997 www.andersonmoore.co.uk
Cost Effective Business Transfer and Sales for the smaller businesss. www.thebusinessbureau.co.uk
Keith Green
Anderson Moore Business Consultants
As we cannot be experts in every relevant subject, we would love to receive 'guest' articles that may be of interest to anyone running their own business or thinking of doing so. ADD YOUR ARTICLE
