Are you thinking of buying instead of starting your own business? Many successful entrepreneurs are described as people who started their business from nothing and grew it to what it is now. Indeed, it takes time—normally several years as the entrepreneur struggles to survive trials—before a business can get truly established in the market. Still, this is not always the route to get into a business. There is a shorter way: buying an existing one.
One obvious advantage in buying an existing business is that someone else had already done the hard work of putting up the company for you. There is already a functioning organizational structure, and you only need to evaluate its operations and procedures carefully to make them even more efficient. But buying a controlling interest in an existing company is not a surefire guarantee to success.
To help you determine whether you are inded ready to buy a business than start one, Entrepreneur.com.ph asked financial guru Henry Ong for three questions that you should ask yourself before deciding.
Three crucial questions to ask yourself before buying a business:
How much are you willing to pay for the business?
Do you have the skills and experience needed to run the business?
How much risk are you willing to take in acquiring the business?
Excerpts have been lifted from the June 2008 issue of Entrepreneur Philippines.