Business for Sale Brisbane – 13 Tips
Have you seen franchises and small businesses for sale in the Brisbane area? Have you ever wondered what they include? Often they will include a website to generate the leads for you so you can convert these into sales. I know of franchises where the franchisee pays a marketing budget but they still have to perform their own marketing. The term “Business for Sale Brisbane” is a pretty generic term. Do you really know what you are getting and what you should be considering before purchasing a business?
Tips Purchasing a Business for Sale in Brisbane
Once you've found a Business for Sale in the Brisbane area that you believe maybe suitable then you need to undertake some due diligence activities.
1. Register your interested – most times you will find a business for sale with a broker, accountant or a lawyer.
2. Why is the Business for Sale – is the owner retiring, competition in the market is changing eg competitor opening up down the road. By understanding the motivation for they owner to sell the business will give you a stronger position in the negotiation phase.
3. Create a Strengths and Weaknesses list for the business and the products or services they provide. The seller is likely to only briefly tell you about the weaknesses. So you will need to identify with the help of appropriately qualified people. Are they including a website with the business and they have stated that it is worth $25,000 and that it generates 300 new clients per month. You need to validate these numbers.
4. Undertake Business Market review. Perform market research and identify who is the competition. Much of this can be undertaken with research via Google.
5. Talk to local customers and suppliers to understand what they think of the business. Also consider their motivation on the information they are providing.
6. Check out the business at different times of the day and night to understand why sales spike. As you need to understand the good and the bad of the Business.
7. Get insider information about the industry. Ask industry questions on forums, check out Facebook fan pages associated to the business and the industry.
8. Analyse the finances - understand the sales, the margins, stock, rent, debts. When was the last full audit – if it was more than 6 months ago request that another be undertaken.
9. Look for opportunities that your can bring to the business and potential positive changes.
10. Identify any current or previous legal issues and confirm ownership of the business for sale.
11. Identify the risks associated with the business – 1 supplier, 2 main customers
12. Understand what the true value of the Goodwill is – discuss with your accountant to help determine this.
13. Payment options of the business -100% upfront or payments over a period of time.
Where to From Here with the Business for Sale Brisbane?
Contact an Accountant, Business Advisor, Lawyer to further understand the business. And to negotiate contract details.
Have an Audit of the Website to confirm website traffic numbers and possibilities to improve the website.
Being an Agency that deals with websites every day of the week, we have a pretty good idea on which websites perform and which websites are lemons. We provide a service were we can undertake an audit of the website to really understand if the claims the current owner is claiming are true or not.