Buying a business is an excellent way to realise your dream of becoming a business owner without all the risk of starting a business from scratch. When it comes to buying a company, though, it takes experience and knowledge to ensure you’re making decisions and going about the process in a way that maximises your odds of success. Working with a Brisbane business broker is a good idea, especially if you are a first-time buyer. Mistakes are common among those buying existing businesses; here are some business brokers in Brisbane can help you avoid.
Buying based on price alone
Many buyers fail to take ROI into account. It doesn’t matter how inexpensive the business is if your investment won’t return enough of a net. In some cases, you may be better off investing your money elsewhere. When you seek corporate advisory in Brisbane, your broker or other business sales professional can help you by performing valuations and determining whether a business is a good buy – regardless of its price.
Running short on cash
Sometimes, buyers spend so much on the down payment that they use up all their money and find themselves in a very tight spot. Failing to consider future cash management and possible additional expenses can affect your short-term success negatively. Don’t invest all the money you have upfront; keep some aside for contingencies as well as a few months’ worth of business expenses.
Failing to verify all information
Many buyers accept whatever the seller tells them without verification—probably because the buyer wants the business badly and the seller is anxious to receive as much cash out of their business as they can as quickly as possible. You should have your own accountant or broker verify all data concerning the company you want to buy to avoid missing out on something important.
Treating the seller unfairly
Buyers can often be too rigid when it comes to the terms of the sale. People selling businesses will often dismiss potential buyers who refuse to negotiate. Remember that negotiation is just that. There must be some give and take for both parties to reach an agreement. A corporate advisory from trusted brokers can help you determine what to compromise on and where to draw the line.
Where to Find Business Valuations in Brisbane
At Benchmark Business Sales & Valuations, we pride ourselves on quality service, excellent results, and accountability. We want the best outcomes for our clients and work with each one to achieve this. We possess extensive industry knowledge and can help you avoid common pitfalls when buying or selling a business. When you contact Benchmark Business Sales & Valuations, we will either assist you ourselves or put you in touch with the appropriate professional with the professional knowledge to help with your individual situation and goals. Either way, you’ll be glad you took a moment to contact us to discuss your business future.