TIP: ASSES THE FIVE NEGATIVE ATTRIBUTES IN BUSINESS
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Nearly every business will demonstrate at least one of five “negative attributes. Being aware of these negatives can assist you to prepare for the purchase of a business. What are the Five Negative Attributes?
1. Need To Hold Stock
3. Managing Staff
4. Long Trading Hours
5. Key person, product or client.
Most businesses possess at least one or two of these “negatives”, and thinking about these areas can help make your acquisition of the business smoother and more successful. How can this benefit you? Well, first of all you need to bear in mind that there is more to buying a business than just the price, and how much profit you will make out of running the business. It is in these five areas that you also need to consider: - How much stock can you afford to carry? - How can you keep debtors under control, and to the lowest possible level. - How to best manage staff. Is this something you are good at? - Does your lifestyle allow you to trade long hours? - Try and ensure that your business does not rely too heavily upon either one employee, the sale of only one or two products, or sales to only one or two clients. Looking to buy a business is a “process of elimination”, and by identifying which of these areas concerns you most, you will start to put together an outline of the kind of business you will buy. Together with an analysis of your own personal skills and weaknesses, you will start to understand what type of business is going to be right for you.
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