4 Non-financial questions to ask before buying a business

(3 minute read)  

Deciding to purchase a small business involves more than crunching numbers or looking at profit margins. Below is a checklist of often overlooked yet crucial questions you need to ask yourself before taking that significant entrepreneurial step.

What's Your Typical Workday Going to Be Like?

It's crucial to have a clear picture of your role in the day-to-day operations. Will you be at the helm or able to delegate key tasks? Factors like the work environment, employee relations, and even your commute can make a significant impact. These seemingly minor aspects often translate into long-term job satisfaction.

Have You Vetted for Financial Misrepresentations and Brand Image?

Let's start with something often neglected: the integrity of the business. Though we all hope for the best, it's prudent to dig deep into the financials and public perception. A thorough Quality of Earnings report is helpful, but vigilance shouldn't end there. Remember, a detailed background check can save you much more than its upfront cost.

Do You Resonate with the Customer Base?

Your next concern should be understanding who you'll be serving. A business that relies heavily on a few big clients can be risky. On the flip side, if you excel at customer acquisition, this can be a golden opportunity. The caliber of your clients can make or break your revenue, making it critical to consider your compatibility with the existing customer base.

Are You Adding Value or Just Filling Shoes?

Finally, evaluate your unique contributions to the business. Will you merely maintain the status quo, or do you bring skills that will drive growth? Also, consider how the existing owner plans to facilitate the transition. Will they help you ease into the role without becoming a competitor down the line?

Bonus: What's Your Financial Management Plan Post-Acquisition?

Not to be forgotten, a robust financial strategy post-acquisition is vital. Many businesses falter because they either overspend or underestimate the capital required to sustain and grow.  A post-acquisition plan is a must!

When you’re ready to get what you want and truly deserve out of your business, we’re here to help.

  • Are you tired of playing small?
  • Do you want to create a real, long-lasting impact for yourself, your family and the community?
  • Do you feel like there are never enough hours in the day?
  • Do you struggle for clarity about your business performance and direction?

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  3. Work with me and my team privately. Schedule an obligation-free chat if you want to work ON your business, not IN it!

The information on this website is general in nature and does not consider your personal situation. You should consider whether the information is appropriate to your needs and, where appropriate, seek professional advice.

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