Fine Business Initiatives That You Can Take Now

A decade ago there was practically only one way to become the owner of business to create it yourself. It is a long, difficult and often risky way.

Today the situation has changed: if the buyer has sufficient assets, he almost always can find and buy a ready-made, successfully operating business, becoming its full owner. If it is a question of large enterprises, to carry out such transactions, usually qualified specialists with experience of successful implementation of tens and hundreds of such transactions are usually connected. The situation is different with the acquisition of small and medium-sized businesses, when both buyers and sellers have little experience in conducting such operations, and attracting experts is not always economically justified.

Better to see once than hear a hundred times

Once you have the idea of ​​buying a business go and look at it. It does not matter that the current owner may not yet know about your intention visit your future office, shop or factory as a customer, a buyer. Take a closer look at people, the situation, the equipment and processes. Need to know more? Then visit https://geoffreyjthompson.wordpress.com.

The first impression, not yet distorted by your expectations and the seller’s promises, will be the most accurate. And only if you like what you see – sit at the negotiating table. Then there will be other visits, then you will still have time to study the details you are interested in, but the first impression, the first unbiased view will remain the most important.

Alas, this, very simple advice is often ignored: how many times have we had to see how the buyer discusses the terms with the seller and internally makes a certain decision, having not yet visited the enterprise under discussion. And when the decision is taken at a subconscious level visits are already useless: in front of the buyer pink glasses and he will not notice even the most obvious problems and risks associated with the acquired asset.

So the first advice is simple: if you are interested, go and see before you start negotiations.

It is impossible to control what cannot be measured

If the answer was given within an hour – then, the management accounting system is there, the necessary information is collected and properly stored. It’s far from the fact that employees are able to correctly process and analyze it – but this is not such a big trouble, it is completely fixable. If the report was brought in a day or two or could not at all answer the question posed, then there is no accounting system, and in any case one cannot believe any figures called the seller.

How can he have reliable data, if the company does not have a process of collecting, storing and analyzing information?

Well, since there is no accounting – what kind of management can there be? You cannot control what cannot be measured. Make sure there is an adequate management system for business needs – otherwise you buy a cat in a poke.

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