Know When To Hold ‘Em & When To Fold ‘Em
Advice for business buyers from NZBusiness in New Zealand:
- Buy a business, not a job. A job is one which generates enough revenue just to pay you a salary. A business generates both a salary for you and profit on top of that.
- Buy something you understand: There’s always lots to learn and the better you know the industry the easier it will be to fill the gaps in your knowledge. Why improve knowledge? Because it’s not just about running the business, you need to be adding value.
- Buy something you’ve properly researched i.e. do your homework. The larger the amount you’re investing the greater the research you need to conduct. In most cases you’ll need proper, independent, professional advice.
- Buy something you have a plan for: Formulate the next steps, visualise where you’ll be taking the business, how you’d like the future to pan out … and plan for it.
There’s always an element of risk when it comes to making major business decisions. Whether you are buying a business for the first time, adding another one to your empire, or settling up and selling, it’s a challenging process that can involve a lot of money and risk.
As a guide, here are four tips that highlight key considerations when committing to a business deal – four tips to help you decide when to stay and when to walk away. Read more.
