How to Spot a Good Business

How to Spot a Good Business BY http://benchmarkbusiness.com.au/



Keep in mind that the seller, not the buyer, pays the commission. Yes itmight be true that a listing agent (the agent representing the seller) is thereto protect the seller’s interests, it doesn’t mean that you’re not savingmoney.A good Business Broker who works for you can protect your interests andguide you through the buying process, from negotiating a price to navigatingthrough inspections, clarifying details, contracts, up until the completiondate when you take over.Keep in mind that the seller, not the buyer, pays the commission. Yes itmight be true that a listing agent (the agent representing the seller) is thereto protect the seller’s interests, it doesn’t mean that you’re not savingmoney.A good Business Broker who works for you can protect your interests andguide you through the buying process, from negotiating a price to navigatingthrough inspections, clarifying details, contracts, up until the completiondate when you take over.

Don’t necessarily buy for the market conditions today:Buying a Business will be one of the bigger financial commitments you’ll make inyour lifetime. Before you buy what you think might be your dream business, consideryour long-term plans and future. Don’t just assume that the market for the businesswill grow 10 years from today, just because it has in the past. Do thorough research.Determine whether the business can survive as it is in the future. If not, how muchmore should be invested to increase or sustain growth? If the market conditionschange what can I hold on to? What will be the eventual value?All Weather” Business:A good business should be capable to sustain in any market conditions, there can beincrease or decrease in profits, but it should never “go South” in any marketcondition. Take Milk Bar’s for example, they were the most sought after by Mum &Dad business buyers for many decades. But today after the supermarket pricerevolution, milk bars are hard to find, some have gone broke, some have beenconverted into houses, & some (yes some) still survive and run with good profits.Those who survived were able to adapt to the market, integrate other offerings, andare able to make good profit even today. Those who spotted the good milk bars anddifferentiated from other milk bars, are reaping the benefits even today.

All Good Business are expensive, no that’s not true:If you are willing to open your outlook, you will find good business even cheaperthan a bad business. What is good business to you might not be the same for others.How do you say a business is a good business: Just by profits for today? Profits in thepast? Location? Managed or Owner operated?A good business in general should be a business with good profit record in the past,current & with a reasonable future expectations, a business where you haveknowledge or experience in managing, a business where the location doesn’t haveroom for any more competitors than it already has, a business where there isopportunity to improve and most importantly a business where you have enoughfunds to invest with less or no loan repayments. Consider all these when you buyyour next business, it will help you in Spotting the Good Business!Karthik ArasuBusiness Broker – MelbourneIf you are looking for the best business brokers Melbourne, then click this linkBusinesses for sale Melbourne