In 2014, Canberra was ranked the best place to live in the world. In 2017, it seems we’re also now the third best place to visit (according to Lonely Planet), and the best place to run a small business in Australia (according to Xero).
If you’ve been thinking of buying a business in Canberra, now might be the time to do it! But take heed – buying a business is a big commitment. It’s easy to get swept up in the excitement and fantasy future that being a new business owner promises, but if you fail to take certain measures at the start, you could find that fantasy turns to failure very quickly.
To help you make a more considered choice, here are a few things to keep in mind as you start on your business buying journey…
Choose the right business
Before you go trawling the internet or local papers for businesses for sale, take a deep look at the lifestyle and potential profit margins from the type of business you are thinking of acquiring.
Whether you step into a business in an industry you know well, or take a punt in an entirely new direction, it’s important to know what you’re getting yourself into. Look at the typical hours of operation, the overheads, the marketing requirements, and the “behind the scenes” of running the business.
Where possible, talk to other business owners in the same industry. If you are considering a franchise, seek out other franchise owners that can shed light on what a typical day is like, the level of support they receive, pitfalls to be aware of, and so on.
Making smart financial decisions
At RSM, we help Canberrans buy and sell businesses every day. We provide:
- Assistance with budgeting and finance before you start searching;
- Help to evaluate opportunities objectively;
- Support through negotiations;
- Guidance through the buying process;
- Ongoing help understanding your tax and other reporting obligations.
We can also act as an outsourced bookkeeper and accountant after the business is bought, and keep you on track with smart financial goals and strategic advice to help you maximise your investment.
A new business is a big commitment, so it pays to take the time to evaluate your options so you can avoid buyer’s remorse. And don’t underestimate the value of an independent advisor in helping you make the best decision to suit your budget, lifestyle and goals.
For objective and insightful advice on buying or selling a business in Canberra, call RSM on 6217 0300 or visit rsm.com.au/canberra.
Original Article published by RSM Canberra on the RiotACT.