Finding the business that's right for you.

So you want to own a business, it’s not an uncommon wish.  Surveys indicate that 95 per cent of people want to stop earning money for someone else and start making it for themselves.  And why not?  How you live your life is shaped and influenced by how you earn your living.  Buying a Business is a major decision and will affect you financially and change your lifestyle, but there are more than 640,000 examples in Australia that show it can be done successfully.

The wealth of this country doesn't walk up and down George or Collins Street in a pinstripe suit.  The big money in this country is in the hands of private business owners - the real wealth creators.  However, business success doesn't always come easily.  Whether you are starting your own business or buying an existing one, there are a few basic rules that need to be followed.

There are many reasons for wanting to go into business.  You may have a good business idea related to your current line of work, or you may have been presented with a specific business opportunity such as taking on a franchise or existing business.

Alternatively, you may have come into money through an inheritance or retrenchment, or have experienced a change in personal circumstances.  Many people decide to go into business for themselves to enhance their lifestyle or achieve personal goals.
Before embarking on a new business venture, Firstly, make sure you're going to start a business and not simply buy a job.  Secondly, ask yourself 'Am I the right type of person to run my own business?'

• Am I able to start and operate my own business?
• Am I going into business for the right reasons?
• Am I aware of the reasons that some businesses fail.
• Do I understand the business I have in mind?
• Do I know how to Manage a Business?
• Do I have experience in this industry?
• Do I know the Advantages and Disadvantages of being in Business
• Do I have the necessary technical skills?

Starting your own business can be an exciting and highly rewarding experience.  However, in order to increase your chances of success, you will need to prepare yourself by carefully considering the type of business you wish to operate, the market you will be targeting and the licences, laws and regulations that will affect your operation.

Are You Ready?

In any situation, the most important thing when starting a business is to make sure you are well prepared.  A lack of adequate preparation is the main cause of small business failure.  Before making any concrete decisions, start by asking yourself the following:

• What type of business do I want to be involved in?
• Do I know the Value of the Business I have in mind?
• What information do I have about the industry?
• Am I capable of preparing a Business Plan?
• Should I conduct a Feasibility Study?
• Can I deal with issues of employment?
• Do I understand Market Research, sales and financial management?
• What training is available to help me gain skills and knowledge in areas I’m not familiar with.

Can you afford to start?

Start up capital is needed to finance the costs you will incur whilst getting your business started.  The amount of capital investment required depends upon the nature of the business.  It should include sufficient working capital to keep the business operating through its early stages, when revenue may be slow.
Before Starting a Business, it is vital to establish whether you have sufficient financial resources:

• Do you know how much money you will need?
• Have you prepared a statement of personal assets and liabilities?
• Do you have sufficient funds until the business starts generating a surplus?
• How much money can you put into the business?
• Are you familiar with Raising Finance for a business?
• What security can you offer for a loan?

Purchasing a profitable going concern has advantages over starting from scratch, having an existing customer base and predictable cash flow gives you a strong advantage.  Start by defining your target business, assess your skills, financial resources and form a picture of the ideal business to acquire.  Make a list of all the businesses that meet the profile even if they're not advertised for sale.

If you decide to use the services of a business broker be sure he or she represents you as a buyer's agent and not the seller.  The broker's record of accomplishment negotiating sales of businesses that fit your target's profile should also be investigated.

Legal issues.

Legal issues affect most aspects of starting and managing a business.  Businesses may be required to obtain licences or permits and their day-to-day operations need to comply with laws and regulations, almost all businesses will need to consider licensing or regulatory issues of some kind.

For small businesses, your local council is responsible for ensuring that some state and local government regulations are observed within each municipality and can inform you of any licenses and regulations that may affect your operation.  Always contact your local council before you buy or start a business involving the Food Industry or people, including a Home-Based Business.  They can provide information about starting and operating a food and health premises, local by-laws such as parking, signage and outdoor dining, and any other requirements or regulations involved with running a business in your locality.

All relationships between businesses and other parties, including customers, suppliers, employees, banks and service providers – involve legal relationships.  Many problems that businesses encounter are often due to a lack of professional advice about legal compliance and issues.  It is important to seek advice from your accountant and a solicitor experienced in the legal issues that relate to the business sector.

You may encounter legal issues in any of the following situations:

• Choosing the appropriate business structure.
• Obtaining relevant licences and identifying regulations.
• Protecting intellectual property.
• Minimising liabilities such as taxation.
• Raising Business Finance.
• Establishing a debt recovery system.
• Negotiating a lease, purchasing or licensing.
• Buying or selling premises or taking on a Franchise.
• Dealing with government departments and semi-government agencies, e.g. zoning authorities