What pitfalls or issues did you look for if you bought your company?
Speaking to the owners out there, did you buy a business? If so what were some of the primary concerns you had, or issues you looked when choosing your company?
Very good question. Generally, the first question I always ask my clients who come to me about purchasing a business is
'how much does the business rely on the person who is selling?'
If a lot (ie all the sales go through the existing owner or customers like to talk to them and them alone) then the business relies on the owner. If you then purchase this business there is a risk that customers will not wish to transact with you because the relationship has changed.
The second question I ask is
'How good are the systems or procedures that run the business'
For example if all the know how is in the head of Norris and Norris is 72 years old and about to retire when you go in it is going to take you a long time to run the business. If on the other hand they have a systems or procedure manual it makes life easier.
I didn't buy my business but I support others who chose to. It is essential to ensure that the main foundations of the business are strong. After that, goodwill and great relationships with clients and customers are a big consideration.