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How to buy a business ?

Discussion in 'Business & Startup Investing' started by GoldCoastGirl, 14th May, 2007.

  1. GoldCoastGirl

    GoldCoastGirl Member

    Joined:
    1st May, 2007
    Posts:
    12
    Location:
    Gold Coast, QLD
    Whilst I go about saving up for my first investment property. I definately would like to be able to purchase an already existing (prefer 3 years old at the very least) business "down the track" as part of my "life plan".

    I'm looking at wanting to purchase an already established animal based business especially a vet clinic, pet grooming salon, pet store and other such business where I would be able to involve myself without having to totally involve myself (it doesn't rely solely upon my individual effort to keep it going - I can work on it from home whilst also being 'hands on' within the business).

    Can anyone recommend where I should look? How do I go about finding out if there are any vet clinics and other animal based businesses for sale locally (or at least in the South East Queensland region)?

    I definately don't want to start one. I would prefer to be the new owner of an already established business. As I have the knowledge of how to turn a business's reputation around into a positive one if the business has been flagging (any established business can be given new life).

    I would be willing to even invest initially in another type of business if the numbers were good (and/or the potential) so as to use it as a way to earn more income (and not have to rely on my current primary way of earning a living).
     
    Last edited by a moderator: 14th May, 2007
  2. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Hi GCG

    Just as there are agents who sell houses, there are business brokers who sell businesses. Do a google search for say "businesses for sale and gold coast".

    There's also a businesses for sale section in the courier mail. Perhaps also in the gold coast paper...

    For a pet care business there would be many franchised operations...check out the Franchise Council of Australia for a list.

    I'd check out the vetinary journal/magazine/newsletter whatever the professional association puts out. In fact talk to the professional association as well. They may have a "practices for sale" list.

    Also get to know the vets in your area...they may be willing to take you on on an earn-in basis...

    I've highlighted some areas above about how to FIND businesses for sale. Whether or not a particular franchise or business is a good one is a separate question. A related but distinct question is whether or not YOU should buy one.

    Good luck with it and keep us posted on your progress.

    Cheers
    N.
     
  3. GoldCoastGirl

    GoldCoastGirl Member

    Joined:
    1st May, 2007
    Posts:
    12
    Location:
    Gold Coast, QLD
    Yes I should buy one. I'm self employed however my primary source of income very much relies on me and my physical "health" as such. If I sprang an ankle or anything, I'm up the creek as I won't be able to earn money.

    You could say I'm in a similar position to any professional sports person today. I have a time-frame before I end up being 'done' with the profession... and that if anything happens to me whilst I am doing it.. then I can't do it anymore.

    I need to invest in a business so that I feel productive as well as keep producting an income ... and be able to also increase my wealth in a way as well.

    I've always wanted to purchase a business (or a franshise) before my first IP. It's my way of taking care of cash flow and income.

    The IPs will take care of my wealth.
     
  4. NickM

    NickM Co-founder Staff Member

    Joined:
    20th Jun, 2005
    Posts:
    321
    Location:
    Sydney
    Hi GCG and welcome to our forum.

    any business will carry some risk so whatever you find be a little wary unless you know the industry well. Franchised businesses tend to be more expensive to buy and more expensive to run due to the franchisors levies / fees.

    Happy Hunting !
    Nickm
     
  5. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Sorry I probably didn't phrase that well. The point I was trying to make is that you need to be aware that you're not just "buying" yourself a job.

    A business where you need to be there even "most" of the time is not a great business in my view.

    Cheers
    N.
     
  6. GoldCoastGirl

    GoldCoastGirl Member

    Joined:
    1st May, 2007
    Posts:
    12
    Location:
    Gold Coast, QLD
    I totally understand that especially more so because I am self employed and the fact that if I don't work I don't earn an income in my present "business". I would want to be able to buy a business that already had (or I can hire) competant employees (managers and other staff) so that I am still involved just that I don't have to be there each and every day.

    At the same time, I would want a business where I could come in and contribute to its everyday operation as I would looking for something productive to do with my time between investing in property etc.

    I'm definatlely not going to "buy myself a job"! Hell no. I want to buy a business that will give me cash-flow, income and help with my "wealth". Plus the fact that I don't mind being "in business" compared to being an employee. I love being my own boss. I just want to be my own boss and not have to rely on me being the primary source/reason for the income as such.

    I would only buy into a franchise after extensive research. I would prefer to buy into an independant established business than a franshise tho' I won't close myself off to the opportunities that being part of a franchise can provide, at the same time.

    Thank you everyone for your input! I'm enjoying it. :) :)