If you have been following our articles, you may have seen a few touching on things to consider when you are buying a business. In terms of principles, we have already covered a lot but what about EXACT situations? This series that we have entitled “Deal or No Deal” features various situations that will allow us to further zoom in on the principles that we have already covered as well as look into the specifics. Our goal is to help you make an effective decision when facing the decision of buying a business. Is it a DEAL or NO DEAL?
The situation today deals with UNFAMILIAR TERRITORY. Let’s say that you were given the opportunity to buy a business and let’s also assume that it’s a really sweet deal – the price is cheap, payment options were given, and the business is already established. Here’s the catch. It’s something you have absolutely NO IDEA how to run. It’s an industry you have no knowledge of and barely any of your skill sets match BUT you were shown really good and realistic projections. What do you do? While it’s imperative and of utmost importance that you know how the business works, there are a few things that may make this a good deal. Is it easy to learn? Will they train you? Can you get someone to train you? Can you get someone you trust who knows about this to run it for you? If you answered NO then, more often than not, it’s a NO DEAL.
Why? This is because the business may just crumble if you run it without having a clue as to HOW. You may spend so much just figuring out how to effectively run it that business just falls and, before you know it, you just wasted your investment. Competition can also eat you alive to the point where it’s unrecoverable if you aren’t prepared. Bottom line, if it won’t be easy to learn the business or you can’t find someone to run it for you, then it isn’t a good idea.
About Brightblue Transition Solutions
Located on Vancouver’s North Shore we are the premier business broker in the lower mainland, contact us if you need any help buying or selling a business in the greater Vancouver or lower mainland areas.