Comments: 1
Registered: 22 Jun : 20:48
| Prospective business buyers need to be aware that the business opportunity they are looking at could well be merely a stressful and low-paid "job". To avoid the pitfalls and learn the truth about advantages and disadvantages of various business types, I recommend potential buyers look at the Australia site www.buyinga-business.com.
In particular check out the 6-step due diligence process because this is a simple array of tests you can apply to any business opportunity before taking your final choice to your accountant, solicitor and business adviser for further examination. It can literally save thousands of dollars in consulting fees.
Step 1 – Product Differentiation
Quite simply, the product or service must be sufficiently different from what else is easily obtainable in the market. These days “high quality” is nothing like enough to be successful – the market is awash with “highest quality”. If you don’t have a point of difference that is sufficiently exciting, forget it.
Step 2 – Size and Behaviour of Market
How big is the market for your product or service? Is it growing or in decline? Has this market absolutely proven its desire for your product or service?
Step 3 – Price Competitiveness
Even if you have a massive point of difference, if your product or service isn’t price competitive with existing brands, people generally will not change what they’re already doing. If people can walk into a store where they already shop and buy a competing product for the same price, forget it.
Step 4 – Company History & Credentials of Founders and Senior Executives
How long has the company been going? Have any of the founders or senior executive got themselves a criminal record? What are the qualifications of these key personnel?
Step 5 – Clinical Research
Many companies make claims about their products or services which in fact have no valid 3rd-party evidence. If all they can show you is their own research, or research that only vaguely relates (eg, if it grows plants in space it’ll work for human health on planet Earth) or a bunch of testimonials, run away as fast as you possibly can!
Step 6 – Proof of Earnings
You must be able to view audited, published average earnings of those who’ve gone before you.
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Location: Perth, Western Australia
Get the facts about buying various types of businesses in Australia and avoid buying a stressful and low-paid "job": http://www.buyinga-business.com
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Buying an Australian Business