Guide to Should you be buying a business?

Willingness to work hard

Many people say, 'Work smart not hard.' We have all heard of people who have found 'nice little earners' which bring in the money for little effort. Most multi-level marketing schemes are sold to you on the basis that once your down-line network is established, the commission will simply accrue without any effort on your part. Have you ever met any successful multi-marketing people who do not work hard? There are plenty of people who have developed their business to a point where they can take long holidays and work whatever hours they wish, but they have always had to work hard over a considerable period of time to get the business to that point.

I recommend: The simple fact is: ninety-nine people out of a hundred who run their own business work hard and always will.

Ability to take pressure

As the boss, the buck always stops with you, and whatever problems arise will ultimately need to be solved by you.

I recommend: How to be a good boss...

Capability to be decisive

All decisions will need to be taken by you and, if your business is to be successful, you cannot be one of life's procrastinators.

I recommend:  If you do not stock the new line being offered by the sales representative, it will be offered to your competitors, so you must be able to take a quick and decisive view on whether or not it is a winner.

Have a flexible attitude

You must go with the flow to succeed. I remember going to a bank cocktail party where the new Business Banking Centre was being opened by the owner of a large and successful department store in the town. In his speech he proudly joked how he had declined to accept debit cards, which at the time were the latest payment system just introduced by the banks. He obviously didn't see the need to suffer the bank charges involved, when he knew his customers would buy from him anyway. What do you bet you could pay by debit card there now!

I recommend: The world is constantly changing. The business that is locked in the past will die.

Be willing to learn

There are several aspects to this. Most people coming out of an employed position, to run their own business for the first time, will have skills in certain areas, but running a small business entails dealing with every aspect of the business. Even if you have staff or contractors to do various tasks, these people quickly recognise a boss who is completely ignorant of the issue at hand and often take advantage.

I recommend: Every type of business has basic elements that you must get right if the business is to do well. It could be location or maybe stock control. Possibly it is efficient factory layout or reliable delivery systems. Unless you have recently worked in the type of business you are buying, you will need quickly to identify and understand these key issues. As stated already, you need to be flexible towards change, and obviously this can involve learning new skills.

Ability to deal with people

This attribute is as important as any. When you work in a large organisation you often tend to deal mostly with people at a fairly similar level and in similar fields to yourself. When you run your own small business, you will have to deal with a variety of people at a variety of levels. The successful businessperson is able to motivate people, whatever their relationship to the business, whether it be: • Senior employee. • Junior employee. • Important owner/employee of a client. • Lesser employee of a client. • Bank manager, rax or VAT inspector. • Sales rep. If it is, say, a convenience store you are buying, then all your customers, being local, may well be of a generally similar background and as such you may feel that handling people is not a major concern. Nevertheless, you will still need to be able to communicate with them in a way that makes them feel valued.

I recommend: If you have the type of business where you need to make sales calls, then you must have the communication skills necessary to present yourself to potential buyers in a way that gives them confidence, both in yourself, as well as your business, to provide the standard of service they require. Do not underestimate this. People buy people first. If you need help to hone your communication skills, then get it. Equally important is the ability to motivate staff. If they like you and respect you, they will want to pull for you, and you will find that this will make all the difference when you are in a tight corner, or trying to impress a new client to win a first big order.

Franchises

A franchise is where you pay a fee to an established company for an exclusive territory, training, ongoing management backup and support to trade as part of a proven business. For those dubious about buying a business of their own for the first time, a franchise can be the ideal answer. You are given training in all aspects of the business, help is always available whenever needed from a head office, and you are part of an established and proven operation. As such, you are in business working for yourself, but not by yourself, and success is assured provided you work to the system and put in the effort.

I recommend: Well, that is the theory, and it can be correct. A franchise can be the ideal solution for people who are unsure that they have the knowledge to jump straight into business on their own.