FAQs For Business Buyers
Now you have decided to buy a business, what do you have to consider?
1. What Type of Buisness Do I Want?
- What skills or qualifications do I have?
- Is this type of business realistically affordable?
- Will the business provide the income I require?
- Will I require staff or family to assist in the running of the business?
2. Do I Buy Leasehold or Freehold?
- It may cost less to buy a business that trades from Leasehold premises and pays rent.
- To buy a business together with the Freehold interest may cost me more.
- Realistically this will be dependent on a number of things, largely my financial position.
3. Should I Live on The Premises?
- Some businesses trade from premises with living accommodation, some trade from lock-up premises and some can even be conducted from home.
- This is dependent on a number of things - my personal preference, the type of business I'm considering buying, but more often - my financial position.
4. What Costs Can Be Involved When Buying a Business?
- The costs vary from business to business, but generally consideration has to be given to the following:
- The Leasehold or Freehold premises.
- The going concern, the assets and the stock.
- The professional costs incurred - solicitors, accountants and surveyors.
- Sufficient working capital for initial overheads - rent/rates in advance, money to live on and enough funds to maintain good levels of stock.
5. I Still Have Questions to Ask - Where Do I Go From Here?
- There are a few general points to note:
- Always be discreet when enquiring about a Going Concern - the vendor may not want his staff or customers to know his business is for sale.
- Make an appointment through the Agent to view the business.
- Prepare in advance all the questions you want answered, and make notes.
- Whatever the outcome of your visit - communicate with the Agent.
- Finally - Always take professional advice at the earliest opportunity. Talk to your own bank, a commercial solicitor and a reputable accountant.