Going into business can be your first step towards financial independence and there is nothing like being your own boss! As the saying goes "If you do something you enjoy you’ll never work again"
With careful planning, clear thinking and professional advice you will know exactly what you’re getting into.
Most people buy an existing business because they lack the capital and expertise to establish their own from scratch. Also, many new ventures don’t make it through the first few years. You can buy a business someone else has started, where the hard work has been done, and a financial track record has been established. Of course, you pay a price for this normally in the form of goodwill.
Many people can’t risk not earning an income for the start-up period until the business becomes profitable and generally speaking it is easier to Finance an existing business than a new venture.
From a buyer’s point of view, all the expenses involved in operating an existing business can be seen at a glance. Costs such as staff, rent, variable outgoings, rates, taxes, licences etc are all detailed in the financial statements as well as the total sales revenue, gross profit and net profit.
The asking price of the business generally includes the plant and equipment necessary for running the business, stock on hand and a goodwill component. One definition of goodwill is "an amount included in the price of a business that is over and above the price of the physical assets of the business".
For further information on buying or selling a business please contact Tony Romano 0407 388 139 .
