Do You Dream Of Owning Your Own Business?
Buying a restoration business can be an overwhelming process, from finding the right one to working out all the details required for a smooth transfer of ownership.
While there is no such thing as the “perfect” business, a solid business broker knows the importance of finding one that fits your needs, goals, talents, skills and lifestyle.
Below you will find some helpful information as you consider whether buying a restoration business is right for you.
Are You A Restoration Business Buyer?
Most buyers are seeking to obtain the following when considering the purchase of a business:
Pride in the service or the product
Control of own destiny
Customer and employee contact
What To Look For?
Are the profitability and revenue numbers stable or rising?
Is the bookkeeping professional and clean?
Do they have at least 3 years of financial records?
What are some “low hanging fruit” actions that would grow the business in the first year?
Do they have a business plan for the next 3 years?
If they had a check for $100,000, how would they grow the company?
Is a single customer contributing to a large percentage of sales?
Are they too dependent on a single supplier?
Are they too dependent on one employee?
Are the marketing processes well-developed, documented and replicable?
Do they have a database of clients that can be farmed?
Can they explain how to generate sales?
Do they have an automated way to measure customer satisfaction?
Do they monitor what customers are saying about the company online?
Have they set clear benchmarks for the staff?
Does the staff have enough accountability and responsibility to keep the business going in the absence of the CEO/Owner or can they expand their roles?
Is the CEO/Owner the hub of all activity in the business?
How much time does the CEO/Owner’s daily and weekly routines and responsibilities add up to?
Buying A Restoration Business
The next step to buying your own business is to make sure it is the right move for you and your family.
Owning one’s own business is still very much “the great American dream,” but it’s not for everybody. Here are some questions that you should ask yourself before taking the next step.
Many people are interested in buying their own business, but are not willing to make the commitment necessary to move forward. They continue to look just like those who continue to look at new and expensive automobiles, but will never spend the money necessary to buy. One veteran observer has said that the longer you look, the less likely you are to buy.
If you’re thinking of buying a business in two years, it’s good to start your education. BizBuySell is a good place to start. Keep in mind that it really doesn’t make much sense to start your search now, since any business you find now will have been sold by the time you are ready to buy. It’s important, however, to arm yourself with all of the information and education available before you begin the search.
If you are not motivated to buy a business, you won’t. You must go into business for yourself for the right reasons. If you’re tired of the corporate world, just have a “job-job,” or perhaps even a dead-end job, then business ownership may be right for you. Certainly if you’re unemployed or being transferred to a place where you don’t want to go – buying your own business can be a viable solution.
Buying your own business requires a serious financial investment. If you’re the type who does not want risk, you might want to rethink owning your own business. It is not for the faint-hearted.
Operating a small business requires continual decision making. You’re the boss, and you are in control. All of the decisions are yours – right or wrong. And, you will make a lot of wrong ones. The question is, can you recover and keep going forward? If you brood about poor decisions or they keep you awake at night, owning your own business may not be for you.
If your family, especially a spouse, is not behind you 100 percent, then you should think twice about business ownership. It’s very important that you have the support of your spouse. He or she has to understand that running a business can be time-consuming. On the plus side, however, many businesses do allow for flexibility so you can attend the afternoon little league game.
Do you think that you can buy a business with lots of cash flow for $100? It’s important that you have realistic expectations about what your money will buy. Many sellers are willing to assist in financing the sale of their business, but remember, they’re not going to give it away. Keep in mind that many business owners have spent years building their business, and it may represent the biggest financial asset they have. They’re not going to just hand it over to you.
If you are looking for a guarantee or a sure thing, then business ownership is not for you. You can and should look at all of the financials, tax returns, and all of the books and records. Remember, however, that they all represent history. You can’t buy anyone else’s history. A new owner makes changes, no matter how subtle. Their management style is different, and times change. You have to look at the business with the attitude of how you can improve things. The financial history of the business is certainly important, but it does not guarantee the future of the business – you do.