by theEmother | Apr 14, 2020 | business ideas & thinking, Buy a Mother of a Business, growth by acquisition, start with the end in mind
Now that we’ve had a chance to catch a momentary breath, thought it worth sharing with you what we learnt from the GFC as a gauge to how this current situation may play out:
- Beat the Rush! Unfortunately, there will be business failure fallout due to what’s happening but not just yet. Quality business to buy is available now and will be for the continued foreseeable future, or at least until the distressed ones start hitting and clouding the market. Being in front of the Buying pack will work in your favour.
- Buyers continue to look to buy businesses, with our inquiries over the last week the highest they’ve been in some time.
- Buyers do so because it is a good time to seek out opportunistic acquisitions of quality, or looking out for perceived bargains, or even for Income Replacement due to job loss.
- Granted, it may take a little longer to transact, and all your risk-averse advisors will say the time is not right, but the longer time a business is in the market, it will give continued exposure, meaning more Buyers can come forward.
- The market will take time to settle. You as the Buyer therefore may need the Owner to be around longer than first intended. This can be good as it will give some certainty of mutual support in sharing the risk, as well as the possible option of a reduced agreed payment upfront as well.
- A good business it will stand out. A good business will always find a Buyer.
- All of that said — nobody knows how far away waiting for a “better time” will be…
If now is the time to act for you, please subscribe on our Watchlist and be notified each and every time all businesses come on the market through our network.
by theEmother | Jul 13, 2012 | build a Mother of a Business, business ideas & thinking, EXIT execution, Finish Unfinished Business, Listen, Podcast, SELL your Mother of a Business, so you think you're in business, start with the end in mind
Podcast: Denise Hall talking Starting vs Buying a Business – businesssuccessradio.com.au by Denise Hall on Mixcloud
I know. The idea of owning your own business is becoming a more attractive and popular option for a lot of Australian women.
The idea of setting your own hours, having unlimited income potential and working in an area you are passionate about to bring value to the marketplace is an appealing alternative to an office environment, for a lot of individuals. Women are driven and great at multi-tasking, all great skills for a potential business owner.
Statistically speaking though, most businesses fail within the first two years. Although there are many reasons why this is the case, a few common denominators exist around the initial set up and structure of the business. It’s not enough to have a good idea. Or, to even be good at what you do. This alone doesn’t necessarily translate to success at owning and managing your own business.
Getting your business off and running takes a little capital and a solid plan of action. Researching your potential market along with establishing the legalities can be a headache in and of itself. Once you make a start, seeking expert advice, joining a trade association, and networking with your local chamber of commerce can be helpful launching steps.
In order to increase your potential success rate, you might consider some alternative options to starting a business from scratch. Franchises, Direct Sales, or purchasing an already existing business are viable options with a little less risk, or at least a different risk, involved.
Franchises:
You can find information about starting a franchise in Australia at www.franchisebusiness.com.au. You might be surprised at some of the great opportunities you will find. There are hundreds of franchises to choose from in many different arenas. The benefits of a franchise are that there is already name recognition in the marketplace along with a proven track record and system for success. The downside can be the amount of capital necessary to get a franchise on its feet. Also, it might take a while before you realise the profits you are after. Depending on the franchise, expect at least two years before you see a true return on your investment.
Direct Sales:
For all of the reasons entrepreneurial women like to own their own businesses, network marketing, or direct sales, can be a great option. Start-up costs are typically very low and you have the benefit of setting your own pace for your business. Oftentimes, you can build it with discretionary time as you continue in your normal job. This provides more stability and less risk to the woman who is after more financial stability for her family. The downside to a business like this is that you must be highly self-motivated. All of the good products in the world won’t sell themselves if you are unwilling to get out there and push them. Also, many people avoid this type of business because you typically need to start up with friends and family or someone in your close network. You can check out the Australian Direct Selling Association’s website for lists of reputable companies and information about direct sales.
Buying an Existing Business:
This option is really great if you know what type of business you are passionate about, have some capital, and would like to have an already established client base or revenue stream. The potential to grow it or expand to new areas is appealing. The downside is that you might inherit existing problems with personnel, debt, or organisational structure. You also lose the chance to start from scratch and establish your own vision and mission. However, these can be developed over time as you implement changes. The Australian government lists some other things to consider on their website before purchasing an already existing business.
All in all, women have what it takes to be successful in business. Eliminating all risk is unavoidable but if you are driven and passionate about your product, it might be worth the plunge.
Kayla Wilson, Editor of creditcarecompare.com.au
The Credit Letter Blog is dedicated to giving individuals financial advice in every area of life from credit cards to business and family.
