Now, today I would like to consider some issues about buying a business. I know that this article may not appeal to all entrepreneurs as some are still in the very early stages of building their enterprises and hence still have a long way to start thinking about buying other businesses. Some entrepreneurs even like and want to keep it small and manageable – hence will quickly run away if you introduce the topic of expansion, buying other businesses etc. However, I also need to address the needs of those entrepreneurs that have worked hard and have stabilized their current enterprises, and therefore are interested in buying other businesses to achieve their bigger dreams. I need to consider those entrepreneurs who have the appetite to grow their businesses exponentially, and one of the avenues of achieving this is through purchase of other businesses.
While in many developed economies buying businesses, an action that goes under different descriptions such as acquisitions, mergers, consolidations etc. are common and happen literally every day, the same is not true in developing economies. In small economies, you might find only a couple of such arrangements in a year. The other side of this is that many small purchases of businesses go unnoticed and unreported. In this article we are going to keep it very simple. We are not going to delve into the technicalities, terminologies and complexities that humongous businesses use when talking about buying or merging with another business. We will stick to the basics so that every entrepreneur can understand. Don’t you agree with me? Buying another business is not the exclusive privilege of only big guys or investors. Small time entrepreneurs do it too.
So, what are the principal considerations for an entrepreneur when buying another business?
Well, I think I need to stop here now, or I run the risk of boring you with so long an article that may make you avoid my future blogs. I believe I have highlighted some vital considerations when buying a business. Don’t you agree with me? For those entrepreneurs with appetite in buying other businesses, you do well to consider all the above in a focused way. Don’t just run into buying another business as if the world is ending and you want to achieve something before everything comes to a full close. Be sober. Be patient. Be strategic and yet tactful. Be keen and elaborate. Be logical and yet innovative and creative. Be smart as you expand your business empire. It is your business and it has got to continue keeping you busy while you are busy at it. Safeguard your resources because poor buying decisions could cost you an arm and a leg. Invest wisely.
Have a nice and rewarding week ahead,
The Wise Entrepreneur