Wanting to leave your mark in the world by being the next Mark Zuckerberg is a noble dream but keep in mind it's not the only path to being an entrepreneur and owning your own business. An entire generation, the baby boomers are retiring and some of them have built businesses they may want to transfer to someone else to continue instead of closing shop.
Gen Z and millennials can take advantage of this silver tsunami and ride the waves. Buying also involves risks just like startups and businesses built from the ground up. There are a number of considerations and things that a buyer should know but if you are keen on getting one, make your move fast because the longer you wait, the more you may have to spend.
According to Fast Company an average business costs about $200,000 and top sectors include restaurants, bars and retail shops among others. These businesses can be real money makers because they already have a niche and loyal customers. At the same time, it offers the new owners the challenge of taking the company to the next level and making it their own.
Here are some things to consider before buying you're a business from a retiring entrepreneur:
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Research and learn as much as you can about the business. Attend trade shows to know about trends and prospects in the industry you plan to get into. Also be familiar with customers, market demands and your competitors.
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Make an effort t to build connections, first to help you find the right company to buy then to get to know the business owners. Know their vision for the company and their values. Build a rapport and establish trust if you really want to buy their company.
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Get the business profile. Check the record and performance of the company: are there any legal cases filed, records on tax audits, insurance claims and also financial performance and compliance with other relevant regulations. Know what you're spending money on.
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Explore the market. Get to know customers and competitors and identify your competitive edge as well as areas for improvement. Learn how you can take advantage of them to add value.
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Plan your next moves for the next 100 days: the transition period and the changes you wish to make to grow the business.
