Recently, Lorraine Pirihi from “Relaunch your Life” and I had a good chat about “How to Avoid Losing Money When Buying a Business” (audio is below).
The key aspects of which are summarised here:
• Not certain of what to buy?
• You can spend a lot of time looking at a broad range of businesses.
• Whilst keen at the start it can be energy sapping in the long run if you’re uncertain of what to buy.
• Financial limitations
• Do you have an understanding of what you REALLY can “afford”?
• Can you pass the “sleep at night test”– losing sleep might indicate that you are over stretched!
• Often after finding the right business that matches your criteria, you may continue to procrastinate with the decision to buy
• Lack of preparation
• Due to lack of preparation, you may not able to identify an opportunity even if you find one. Often buyers regret missing the opportunity after the business was bought by others.
• Seeking the perfect deal
• You may appear stuck in the buying process, and over analyze businesses with the focus on identifying actual or potential issues, thereby talking yourself out of the transaction.
A full transcript of the interview can be found here.
Follow along with this audio…