Читать книгу Small Business for Dummies - Veechi Curtis - Страница 59

IN THIS CHAPTER

Buying your own business — the good, the bad and the ugly

Doing your research and asking the right questions

Determining how much a business is worth

Working through a business purchase checklist

Understanding the pros and cons of joining a franchise

Doing your homework before signing the dotted line

Iam often torn when people ask me whether I recommend they buy a business or start one from scratch — or perhaps consider a franchise.

One of the trickiest questions, if considering whether to buy a business, is figuring out how much a business is worth. Occasionally, business owners are prepared to sell their business for a song, especially if they’re seeking a quick sale. More often, owners overvalue their businesses, and the unwary buyer can end up paying far too much.

Another challenge is weighing up the risks involved. On the one hand, buying a business involves a greater financial risk in the short term because you have to pay for goodwill. On the other hand, the long-term risk is probably less, because (hopefully!) you’re buying a business with a winning formula and long-term security.

One of the alternatives to buying an established business is to join a franchise. When you join a franchise, you’re not just buying a business; rather, you’re becoming part of a proven system that works. Along with this system, you’re also buying a recognised brand name and established reputation. This option is generally the most expensive up-front, but arguably carries the lowest risks.

In this chapter, I provide a summary of the pros and cons of buying a business versus starting from scratch versus joining a franchise. I also help you figure out how much to pay for a business, and provide checklists of the questions you should ask before buying a business or a franchise.