to ensure that the intellectual property, staff and customer loyalty are all smoothly transitioned over to the new owner. Although it is always a good idea to meet the owner first, you may not want to spend the next few months working with them.

Also remember that price is not the only thing you need to negotiate. It is essential to understand how the business works, and what is required to keep it working. Only then can you ensure that these things are appropriately covered in the transfer of sale contract. One other thing to watch out for is any outstanding debtors – including Tax and Superannuation liabilities. There is more information availab

Over the next ten years throughout the western world and particularly in countries like Australia, Canada and the United States there will be an increasing number of businesses for sale as the baby-boomers move into retirement. As a result there will be an increasing number of bargains amongst the businesses for sale as the supply and demand equation tilts in favour of new business owners. Already in Australia prices of businesses have fallen according to the BizExchange Index – a quarterly report on the price of businesses for sale in Australia.

It is commonly known that most new businesses fail within the first 2 years, and yet people continue to choose starting their own business over buying a going concern. While this may be the only option if you are doing something that has never been done before, it is certainly not the case for most businesses. There are hundreds of businesses for sale listed on bizexchange.com.au and other similar websites.

Ideally you want to buy a business for less than it would cost you to create one, and one in which your input can have an immediate positive impact. These opportunities are easier to find than many people think. Owner operated businesses have their own lifecycles of establishment, growth, plateau, and eventually decline. Buying a business in the later half of its life-cycle can provide great opportunity to add value, provided you can get in while the customers are still happy. With many of the baby boomers entering their retirement years, there is likely to be a continual stream of these opportunities for the next five to ten years.

A quick look at the major hurdles for new businesses also clarifies why buying a business can be a better way to go. Here are the top five:

1. Establishing a customer base
2. Internal systems & procedures
3. Market awareness and credibility
4. Premises and staffing
5. Cash-flow

There is no doubt that the top 3 are the reason why franchising is such a growing industry as this is generally what a franchise is offering. However if you are opening a new franchise then in many cases you are still going to need to tackle the number one hurdle – establishing a customer base. If you are seriously considering a potential purchase of a business, then ask yourself not only if the business already has these things, but also how you can ensure that they will continue to exist when you are in charge. One of the ways of doing this, particularly in a service business, is to have a ‘work-out' clause in the transfer. This requires the existing owner to continue to work in the business for a nominated period of time to ensure that the intellectual property, staff and customer loyalty are all smoothly transitioned over to the new owner. Although it is always a good idea to meet the owner first, you may not want to spend the next few months working with them.

Also remember that price is not the only thing you need to negotiate. It is essential to understand how the business works, and what is required to keep it working. Only then can you ensure that these things are appropriately covered in the transfer of sale contract. One other thing to watch out for is any outstanding debtors – including Tax and Superannuation liabilities. There is more information availabl

starting their own business over buying a going concern. While this may be the only option if you are doing something that has never been done before, it is certainly not the case for most businesses. There are hundreds of businesses for sale listed on bizexchange.com.au and other similar websites.

Ideally you want to buy a business for less than it would cost you to create one, and one in which your input can have an immediate positive impact. These opportunities are easier to find than many people think. Owner operated businesses have their own lifecycles of establishment, growth, plateau, and eventually decline. Buying a business in the later half of its life-cycle can provide great opportunity to add value, provided you can get in while the customers are still happy. With many of the baby boomers entering their retirement years, there is likely to be a continual stream of these opportunities for the next five to ten years.

A quick look at the major hurdles for new businesses also clarifies why buying a business can be a better way to go. Here are the top five:

1. Establishing a customer base
2. Internal systems & procedures
3. Market awareness and credibility
4. Premises and staffing
5. Cash-flow

There is no doubt that the top 3 are the reason why franchising is such a growing industry as this is generally what a franchise is offering. However if you are opening a new franchise then in many cases you are still going to need to tackle the number one hurdle – establishing a customer base. If you are seriously considering a potential purchase of a business, then ask yourself not only if the business already has these things, but also how you can ensure that they will continue to exist when you are in charge. One of the ways of doing this, particularly in a service business, is to have a ‘work-out' clause in the transfer. This requires the existing owner to continue to work in the business for a nominated period of time to ensure that the intellectual property, staff and customer loyalty are all smoothly transitioned over to the new owner. Although it is always a good idea to meet the owner first, you may not want to spend the next few months working with them.

Also remember that price is not the only thing you need to negotiate. It is essential to understand how the business works, and what is required to keep it working. Only then can you ensure that these things are appropriately covered in the transfer of sale contract. One other thing to watch out for is any outstanding debtors – including Tax and Superannuation liabilities. There is more information availab

its life-cycle can provide great opportunity to add value, provided you can get in while the customers are still happy. With many of the baby boomers entering their retirement years, there is likely to be a continual stream of these opportunities for the next five to ten years.

A quick look at the major hurdles for new businesses also clarifies why buying a business can be a better way to go. Here are the top five:

1. Establishing a customer base
2. Internal systems & procedures
3. Market awareness and credibility
4. Premises and staffing
5. Cash-flow

There is no doubt that the top 3 are the reason why franchising is such a growing industry as this is generally what a franchise is offering. However if you are opening a new franchise then in many cases you are still going to need to tackle the number one hurdle – establishing a customer base. If you are seriously considering a potential purchase of a business, then ask yourself not only if the business already has these things, but also how you can ensure that they will continue to exist when you are in charge. One of the ways of doing this, particularly in a service business, is to have a ‘work-out' clause in the transfer. This requires the existing owner to continue to work in the business for a nominated period of time to ensure that the intellectual property, staff and customer loyalty are all smoothly transitioned over to the new owner. Although it is always a good idea to meet the owner first, you may not want to spend the next few months working with them.

Also remember that price is not the only thing you need to negotiate. It is essential to understand how the business works, and what is required to keep it working. Only then can you ensure that these things are appropriately covered in the transfer of sale contract. One other thing to watch out for is any outstanding debtors – including Tax and Superannuation liabilities. There is more information availab

is such a growing industry as this is generally what a franchise is offering. However if you are opening a new franchise then in many cases you are still going to need to tackle the number one hurdle – establishing a customer base. If you are seriously considering a potential purchase of a business, then ask yourself not only if the business already has these things, but also how you can ensure that they will continue to exist when you are in charge. One of the ways of doing this, particularly in a service business, is to have a ‘work-out' clause in the transfer. This requires the existing owner to continue to work in the business for a nominated period of time to ensure that the intellectual property, staff and customer loyalty are all smoothly transitioned over to the new owner. Although it is always a good idea to meet the owner first, you may not want to spend the next few months working with them.

Also remember that price is not the only thing you need to negotiate. It is essential to understand how the business works, and what is required to keep it working. Only then can you ensure that these things are appropriately covered in the transfer of sale contract. One other thing to watch out for is any outstanding debtors – including Tax and Superannuation liabilities. There is more information availab

to ensure that the intellectual property, staff and customer loyalty are all smoothly transitioned over to the new owner. Although it is always a good idea to meet the owner first, you may not want to spend the next few months working with them.

Also remember that price is not the only thing you need to negotiate. It is essential to understand how the business works, and what is required to keep it working. Only then can you ensure that these things are appropriately covered in the transfer of sale contract. One other thing to watch out for is any outstanding debtors – including Tax and Superannuation liabilities. There is more information available on these issues as part of the information area on the bizexchange website including a checklist on buying a business.