Starting a new business is a daunting prospect for anybody, whether you are a budding entrepreneur or just an ordinary individual that wants to do what you love for a living. Whilst we all dream about quitting the day job that we hate and working for ourselves, there are many factors to consider and the process has to be fully thought through if you want to stand a chance of succeeding with your dream business.
There are certain things that you should think through and processes you should complete before quitting your day job and buying your dream business. The eight steps below will provide you with a quick guide as to what you are supposed to do and help set you on the path to quitting your day job and buying your dream business.
Step One – Play To Your Strengths
If you are considering the possibility of acquiring your dream business then the last thing you want to do is to rush into buying any business that seems cool. You must have a passion for the business if you want it to be your ultimate dream business! Assess your hobbies and interests in line with the types of businesses available and ask yourself whether you would like to go into it for a career.
Step Two – Do Your Homework
Research the market and take a look at the business information you would need to know. Trade journals and listings of available businesses will provide you with an idea of what is there as well as give you the knowledge that you need to be able to succeed. However, you still should not quit your job yet!
Step Three – Assess Your Funding Options
Do you have the money to buy a business outright? Do you have savings to fall back on? Could you get a loan and how much would you need? Is there anyone that you would like as a partner or would you prefer an independent investor? If you cannot afford to buy a business outright then you should look into all of the above and how much you could borrow in line with your assets. The funding is also a reason why you may want to consider when you quit your job for your dream business. A steady income can actually help you to get through the initial stages of development after buying a business when profits are scarce.
Step Four – Draft A Business Plan
You should never ever go into buying a business without a plan in place. You must have an idea of how you would take your dream business forward and make a profit. If you are to succeed, you will need to have some sort of plan to follow so a comprehensive business plan is a necessity and not a luxury. If you are to apply for a business loan then you will need a business plan for that purpose as well.
Step Five – Consult With Your Advisors
You will need a lawyer and a business appraiser at the very least, depending of course on how large the business you intend to buy is. Experienced lawyers and accountants will be able to advise you of the steps to take and how to buy the right business. He or she will also be there for you during the teething process to lead you when necessary.
Step Six – Wait For The Right Business
Your dream business will come to you so do not rush into anything that you are not sure of. A dream business is worth waiting for, no matter how long it takes so be prepared to hold off for a while if necessary. You can actually hire someone to find the right business for you if you want to be proactive.
Step Seven – Make Your Offer
The level of your offer should depend on a business appraiser’s assessment. Putting your offer in does not guarantee acceptance but it does open negotiations, so decide how much you would want to pay and go from there.
When you quit your job for your dream business is up to you, but make sure that the timing is right and you are financially able to survive without a fixed income before biting the bullet and starting your entrepreneurial future!