How to Spot a Good Business

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How to Spot a Good Business

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• http//benchmarkbusiness.com.au/

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Keep in mind that the seller, not the buyer, pays
the commission. Yes it might be true that a
listing agent (the agent representing the seller)
is there to protect the sellers interests, it
doesnt mean that youre not saving money. A
good Business Broker who works for you can
protect your interests and guide you through the
buying process, from negotiating a price to
navigating through inspections, clarifying
details, contracts, up until the completion date
when you take over. Keep in mind that the
seller, not the buyer, pays the commission. Yes
it might be true that a listing agent (the agent
representing the seller) is there to protect the
sellers interests, it doesnt mean that youre
not saving money. A good Business Broker who
works for you can protect your interests and
guide you through the buying process, from
negotiating a price to navigating through
inspections, clarifying details, contracts, up
until the completion date when you take over.
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Dont necessarily buy for the market conditions
today Buying a Business will be one of the
bigger financial commitments youll make in your
lifetime. Before you buy what you think might be
your dream business, consider your long-term
plans and future. Dont just assume that the
market for the business will grow 10 years from
today, just because it has in the past. Do
thorough research. Determine whether the
business can survive as it is in the future. If
not, how much more should be invested to increase
or sustain growth? If the market conditions
change what can I hold on to? What will be the
eventual value? All Weather Business A good
business should be capable to sustain in any
market conditions, there can be increase or
decrease in profits, but it should never go
South in any market condition. Take Milk Bars
for example, they were the most sought after by
Mum Dad business buyers for many decades. But
today after the supermarket price revolution,
milk bars are hard to find, some have gone broke,
some have been converted into houses, some (yes
some) still survive and run with good profits.
Those who survived were able to adapt to the
market, integrate other offerings, and are able
to make good profit even today. Those who spotted
the good milk bars and differentiated from other
milk bars, are reaping the benefits even today.
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All Good Business are expensive, no thats not
true If you are willing to open your outlook,
you will find good business even cheaper than a
bad business. What is good business to you might
not be the same for others. How do you say a
business is a good business Just by profits for
today? Profits in the past? Location? Managed or
Owner operated? A good business in general
should be a business with good profit record in
the past, current with a reasonable future
expectations, a business where you have knowledge
or experience in managing, a business where the
location doesnt have room for any more
competitors than it already has, a business where
there is opportunity to improve and most
importantly a business where you have enough
funds to invest with less or no loan repayments.
Consider all these when you buy your next
business, it will help you in Spotting the Good
Business! Karthik Arasu Business Broker
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