Want to Sell Your Business?  Do so on Australian Business Sales.

The X factor in buying a business

Written on the 8 December 2021

There is no doubt that buying a business has a higher probability of success than starting one from scratch.   But what are your chances of success if you buy a business with which you are unfamiliar?   Plenty - according to the franchise promotions.   On the other hand there are plenty of career professionals who believe that in order to run the business you must be able to ply the trade, whether it is plumbing pipes or pulling teeth.

The fact is that being good on-the-tools is not a requirement, or even an indicator of success in business ownership.   However it is very important to understand what is required for the business to succeed.   In this regard there are some business basics for particular businesses and industries which you must address.
First and foremost, where does the money come from?   In which market does the business operate?, Who are the potential customers and who are the current customers?  What are they buying and what will they buy in the future?

Secondly what is required for the business to operate efficiently?   What are the major costs, fixed and variable, and how can they be monitored and controlled?   Also what are the risk factors, within and outside the business?

Thirdly, cash flow.   What are the margins, payment track record, terms of trade, and seasonal fluctuations?   How will these factors impact on the financial requirements of the business and its ongoing profitability?

Finally, how will you impact on the business?   This is the real x-factor if you can satisfactorily answer all of the questions outlined above, and see the issues that sit behind them.   Will you provide the business with vision, working on the business over the long term while managing the business day to day.   If you can   see a way of taking the business and improving its functional and financial performance then you might be looking at your next business.

Reference Links

For Business Buyers

For Business Sellers

Subscribe for Business Alerts or Sales Tips

Email Address*
First Name*
Mobile Number*
Enquirer Type
Subscription Options
* = required


Australian Business Sales - find a business for sale in Brisbane, Noosa, Sunshine Coast, Gold Coast, Sydney, Melbourne

Latest Business Sales Articles

1. What is the difference between a business valuation and a property valuation

2. Value your Business read more

3. Land a Private Placement to Fund Critical Investments read more

4. Price Optimize for Your Best Customers read more

5. Prioritize Your Debt read more

Read All Articles

Proud Members Of:

View All the Australian Business For Sale Listings

Search for the latest business opportunities for sale in australia

Sell your business. Create a DIY Advertisement

Sell your business, business broker

Go for Gold
Use the Industry Leader 
in Business Brokerage

Sell your business, business broker, euquiry


HomeBookmark This SiteTell A FriendContact UsLoginAccountBusinessPropertyFor BrokersMy Account