Buying a business in Western Canada is a significant investment but it doesn’t have to be hard, scary, or overwhelming. Qualified business brokers can help you choose the best small business for your budget, goals, and lifestyle. Here are 4 tips to help you buy a business in Western Canada.
Decide if you want to build or buy
You can choose to build a business from the ground up or buy into a business that is already in operation. Both options have many benefits and can be successful. When deciding if you should build or buy, ask yourself questions like
- What is your risk tolerance?
- Do you want to develop your own brand or are you comfortable enhancing an established brand?
- How much support do you want as you start and operate the business?
Review your answers with a business broker to determine if you should be looking at a start-up, existing business, or a franchise.
Learn how to evaluate a business
In partnership with a business broker, evaluate each business for sale opportunity to determine if it is a good investment for you. In addition to financial records, take a look at other aspects of the business including, but not limited to,
- Cost of customer acquisition.
- Market share.
- Customer and supplier relationships.
- Operations documentation.
- Industry trends.
An analysis of the current strengths, weaknesses, opportunities, and threats facing the business can give a potential buyer insight into the challenges and prospects they will face. The analysis provides an objective foundation upon which you can base your business plan, short and long-term goals.
Obtaining financing is imperative before you find a business that you want to buy. Owners, franchises, landlords, and suppliers will want to see proof of liquid assets available to buy a business and cover business expenses for the first 3 to 6 months of operation. There are many different ways to secure financing through banks, private lenders, and even government programs. Your business broker will help you identify the best options for you and your business plans.
Settle in for the long haul
Buying a business is not an overnight process. It takes time, planning, and strategy. After the purchase is finalized, the long-term work begins as you start to run and grow the business. Just like a real marathon, buying and running a business takes stamina, smarts, and hard work. You can improve your chances of success by having a great team in place to support you through the ownership transition and into the future. Your team should include your bank, an accountant, lawyer, and business broker who have experience in buying, selling, and growing a business.
If you are ready to buy a business in Western Canada, contact Acuity Business Group for more information on how we can help you maximize your opportunities for success and minimize some of the risks inherent in buying a business.