Buying a Company or Exit Planning: 2 Sides to Every Story

Buying a company

Things to consider:

Suitability

You have to be passionate in business and really care about your subject area. Why? Well you have to learn about the industry every single day and there is no easier way to learn than when you enjoy a topic.

Reasons for the sale

Consider this carefully why would anyone want to get rid of a business that is making money? There are many more reasons than what you may initially think. People get bored, people want more time, and people see a bigger opportunity and different avenues they want to explore. You could be getting an absolute bargain of a business by somebody's poor decision to get rid at the wrong time. This happens a lot.

Market research and competitor analysis

To ensure you are in the best possible position to buy a company, market research and competitor analysis are extremely important. Do not go and buy blind, you have to have an incredible amount of knowledge about the business, the current state of the economy and how easy it may be to overhaul competitors. What is the current state of the market and the predicted future of its longevity? Address these issues and make your own financial plans and estimates.

Exit planning

Reasons to sell:

It's never too early to start exit planning  consider your options and really get a feel as to why you consider it the right time to start selling your business. There are many positives to come out of selling a company even if your business is making money at the moment. Some of the reasons to consider are:

Financial independence

Cash in your hard work. After the years of toil setting up your business wouldn't it be nice to receive a big pay cheque and ease your responsibilities? You can do this but you will have to establish whether it is what you really want, consult financial advisors, have a plan for what you will do after selling and be cautious as there is little chance that you will be able to buy it back.

More time

You will have more time on your hands, that's a fact. Have you been rushing around your life fitting a family and children in between work? Selling a business is the perfect opportunity to make up for lost time.

Relax…

Chill out. A business even if it is enjoyed there is always that pressure in the back of your mind. You are making money at the moment but what about the future? You have no idea and this is where worry and stress happily live. With the constant threat of the rat race off your mind you will find you may free your mind and feel better all round.

About the author

Whether buying as company  or exit planning it is important to gain the right financial advice for your future.  http://www.rickittmitchell.com specialise in all areas of buying and selling business and have years of experience dealing with business people helping them discover the right decision.

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