The previous articles in this series can be read at:
- Buying an established business: Tricks and Traps - Myths and Truths
- Buying an established business: Tricks and Traps - Due Diligence
- Buying an established business: Tricks and Traps - Questions to ask
In most cases, buying an existing practice is a much wiser option; both financially and in terms of risk. The practice will have known fee levels (presumably these will be transferable to you as the new owner – Check), a good and loyal client/patient base, a financial and cost structure which is both understood and works for you, and a sustainable future.
However, here are a few home truths:
- It's a long process
Research shows that on average it takes about 3 or more years from starting the search to purchase. - Most people don't buy
Not all buyers are successful or buy. More than 90% of people who commence the search, do not buy. That may be because they don't find what they're looking for or simply they change their mind and decide not to buy. - Accountants, Lawyers, and Advisers will always be negative
Perhaps it's in their nature or maybe it's because they are required to be conservative or act with caution. Ultimately it needs to be your decision. An entrepreneur will assess the opportunity rather than the threats. Buying any business needs to be based on optimism and a positive outlook. - Critically assess your skills, resources, and readiness to buy
Work on this. But do not buy before you are ready.
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