(PR.co.nz) Owning and operating a business is a significant commitment so it pays to get it right the first time. One of the most important factors is to do something that you will enjoy. Secondly, to use your skills and experience to ensure you can add value to the business.
In evaluating any NZ Business for Sale opportunity take time to consider these six factors;
1. The Industry – When evaluating a business it is important to consider the industry, and whether it’s growing or declining. It’s always easier to survive in a growth sector. One of the hot industries today could be on the out in three years time. Check out what’s currently going on in the industry you’re researching to see it has a bright future, and is compatible with your talents and experience. Ensure there is there a sound market now and tomorrow for the product or services this business provides.
2. The Business Type – Will it be a traditional business model or a franchise business; where there are tighter controls, but more support and well proven systems in place? The more traditional business models can be more profitable but also carry more risk, and have a higher failure rate than franchises. Have a clear picture of what you want to achieve, what risks you are prepared to take and how best to do it.
3. A Point of Difference – Understand what makes this business unique and different from its competitors. Why will people pick your product or service over someone-else’s? Basically the product or service of your business must be able to solve problems faster and more efficiently than your competitors. Who are your customers and what do they represent? Will they stay with the business once you have purchased it?
4. The Branding (your recognition) – When looking at Businesses for Sale NZ opportunities it is worth considering the business’ brand and position. A strong brand will help you get recognition and repeat business; it will also assist your clients in recognizing what you stand for. Some businesses especially franchises, already have a brand that delivers customers and benefits.
5. The Business – Why is the business is for sale? Investigate the trends, how profitable is it, and has it been over the last three years? Get your Accountant to check and recast the financials. Check out all contractual arrangements with suppliers and if these can these be easily transferred. Review any leases, contracts, employment matters and/or intellectual property with your lawyer.
6. The Price – Is the price is reasonable? Ensure the plant and equipment required is in good condition, that all stock has been accounted for and valued appropriately, and that any goodwill is appropriate to the strength of the business. By paying this much will this business service any borrowings, and afford you the lifestyle you want?
It pays to look at and enquire about a wide range of business options when buying a business. Do your homework, make sure it’s something your passionate about before seeking advice from professionals. Check out our many Business for Sale NZ opportunities on the www.nzbizbuysell.co.nz website.
Media Release on 22 November 2013 by NZBizBuySell
Richard O’Brien, NZBizBuySell
Phone: 03 337 0005