What business might be the right fit for me?
Posted by on
Buying an existing business is an appealing alternative to starting a company from scratch. But choosing the best business to buy can be a difficult decision.
There are three important questions to ask to help identify the best business to buy and narrow down the list of potential companies:
Is the company a good fit for my skills, experience and future goals? It’s OK if you’re interested in buying a business that’s not a perfect match for your resume. But there should be something about the company that interests you, and there must be a way for you to contribute substantially to its success.
What does the company sell, and what’s its business model? Do you want to sell products, services or both? Understand the differences in how each type of company operates, and choose a business model that appeals to you.
Is the company successful, and does it have the potential to grow? Buying a struggling company and turning around its fortunes is easier said than done. Examine the performance of not just a company, but its entire market. If it’s not doing well, find out why and determine how much time, effort and money it would take to make it a success.
Don’t forget to consider franchises when choosing the best business to buy, either. There are some trade-offs — you’re not totally your own boss, and you have to work within established guidelines — but franchisees often get additional resources and support from corporate headquarters.