How to buy the right business at the right time | Businessbug Blog

How to buy the right business at the right time | Businessbug Blog

On August 2, 2010, In Business Debt, By admin

So, you are thinking of buying out a business so that you could augment your income and strike rich without putting too much effort. Most of us think along these lines and fail invariably. It is not as easy as it seems and you may have to plan wisely and execute the plans as well.

It’s all right that you are thinking of buying a business. No harm in thinking. You think that you will make that business into a goldmine with your touch. But remember, buying a business and make it a roaring success is much harder than joining a business that is already making money. If you open a cigarette shop next to a mall, it may not work well, but if it is located next to a coffee shop or a wine shop, hordes of smokers will be attracted to it. KFC, or McDonalds, even if opened in a jungle, will find customers.

Coming back to buying a business; do you want it as you are fed up with your job, or you want it for side income? If you are leaving your job, always buy a business that is related to what you have been doing till now. You may be tempted to buy a shop as it has been running well, but your expertise may not be able to sustain it. So play it safe, and always buy a shop which requires skills you already have.

If you want to buy a shop for a steady income while retaining your job, remember that any business demands your attention, effort and time. If you are prepared to take extra time off, you should buy the business; otherwise it is better to stay away from it. Do not buy a business on which you are dependent on other’s expertise. If the man you are banking upon leaves, business falls like nine pins. If at all you buy such a business, it is advisable to give the man a commission apart from salary so that he is interested in sales and takes interest as if it is his own business.

The success of any business depends upon sound business practices and some of these are enumerated below.

• Always keep written records of all transactions
• Always pay your bills and salaries on time
• Analyze the sales and expenses every few months
• Devise ways to improve upon the quality of service
• Inject new ideas to bring freshness to the business.
• Pay attention to networking and marketing.

Tagged with: Business • Business at the right time