Buying a Business Shouldn’t Be This Tough

For many of us, the day arrives that we decide we want to be our own boss. As much as sometimes we may have well paid jobs with good working conditions and benefits, there is something missing.

It happened to me about 10 years ago. It dawned on me that owning my own business was going to fill the void that existed.

I looked online at businesses for sale and compiled a shortlist of opportunities I felt worthy of investigating. What happened next was such a let down and I recall the frustration I felt as clear as if it happened yesterday.

I made 10 phone calls to numbers listed on the business for sale advertisements and never got through to one broker. I left messages to all 10 and received 3 calls back a day later. I eventually bought my first business, but it was hard work and all of the time, I was the one doing the following up.

For the next 6 years I bought and sold four businesses and have learnt a lot from the experiences. Four years ago, I started a business brokerage, Transworld Business Advisors Brisbane and am loving the business of helping people acquire their first business.

I always remember how daunting the task of buying a business could be and have tried to formulate a plan of dealing with enquiries in a way that is supportive and educational to the enquirer. I respect this is a big decision.

These are some of the things I believe, based on my own experiences, that may help people who are looking to purchase a business.

1.      Placing my mobile number 0408 230 203 in the heading of most advertisements. Some people like to call and chat prior to making an online enquiry.

2.      Inviting people enquiring to meet with me personally early on in the piece. Some people find it easy to articulate what they are wanting face to face. I have a folder that we can flick through with all of our businesses for sale (over 100). This allows me to gain an insight of what is important and to compile a shortlist of suitable businesses.

3.      Acknowledging any online enquiry promptly.  

4.      Using an electronic non disclosure agreement (NDA). This can be completed on mobile devices and does not need printing & signing.

5.      Providing a 1-page snapshot promptly to allow the enquirer to assess whether they want to explore this business further.

6.      Allowing enquirers to identify the most important aspects that a business should have and any other preferences.

7.      Providing a comprehensive 10-page information memorandum (IM) on the business including details of operations and a financial summary.

8.      Coordinating a viewing of the business and an introduction to the current owners who can answer any questions.

These are just a few of the steps that I feel make the early stages of exploring the purchase of a business more transparent and less daunting. I have been there and never want my clients to feel the same.