Buying a business

[atm84]

Has anyone here bought into a business rather than start one from scratch.

I have always had an interest in owning my own company but not sure what route to go down: either start from scratch and spend the next 3-4 years struggling to make ends meet but have the satisfaction of doing everything my way and then take all the credit when it goes well (and take the hit if it all goes wrong) or buy a company and take a regular income straight away but then have a business loan hanging over my head until its all paid off.

If anyone has any experience in buying a company and making a success or loss then it be great to hear your thoughts and suggestions.

 

[Marvo]

The third option is buying into a company which might suit you better.

 

[atm84]

That's a good suggestion marvo however like all options there are downsides. 1) I would need to find a company that is looking for new partners or directors and who would want me to be a partner or director 2) there would be other directors/ partners who I might not agree with all the time.

 

[Octopus]

Buying a successful, profitable business wont be cheap

 

[Marvo]

That's a good suggestion marvo however like all options there are downsides. 1) I would need to find a company that is looking for new partners or directors and who would want me to be a partner or director 2) there would be other directors/ partners who I might not agree with all the time.

You are correct, but believe me you only enjoy the freedom that being self-employed offers you until the point you start employing staff. After that it makes very little difference whether you're self-employed or working in a larger business because either way your responsibilities are always with the business and not yourself personally.

I'll throw another one into the mix for you and suggest buying a franchise might be yet another option.

 

[trev]

One of the best things that has ever happened to me is going self employed. Yes, it's hard sometimes but the major rewards for me are
I can work if I want to not because someone else tells me I have to
Everything I earn is for the benefit of my family, not someone else's
If it all goes pear shaped there's only one person to blame. Me
I can pick and choose the work I want to do
I could go on and on but it would just bore you

 

[micknew]

The third option is buying into a company which might suit you better.

That's when problems will begin big time, that's guaranteed.
Stay small as Trev said.

 

[GMES]

That's when problems will begin big time, that's guaranteed.
Stay small as Trev said.

Ha don't listen too them Stumpy :tongue3:

 

[trev]

That's when problems will begin big time, that's guaranteed.
Stay small as Trev said.

Where did I say stay small Mick?

 

[king_11]

One of the best things that has ever happened to me is going self employed. Yes, it's hard sometimes but the major rewards for me are
I can work if I want to not because someone else tells me I have to
Everything I earn is for the benefit of my family, not someone else's
If it all goes pear shaped there's only one person to blame. Me
I can pick and choose the work I want to do
I could go on and on but it would just bore you

How did you find it when you first started out. Being self employed ?

 

[trev]

How did you find it when you first started out. Being self employed ?

Very, very tough. Then I got a few contacts and it started to get as bit easier

 

[Adam W]

What would you actually be getting for your money? You can buy a company name and get their phone number routed to you, but presumably you'd be getting their customer base who the previous owner has built up and has a relationship with, and you'd be assuming the old customers will stay with the company name rather than the previous owner or electrician.

Best case scenario you buy the business, get the number switched over, the phone starts ringing the next day and away you go.
Worst case scenario you buy the business but the customers don't want to stay. Either that or they're all customers from hell.

 

[tj1979]

I'm in a similar position to the OP and moving to a new area. I'm leaning towards going self employed but also considering buying a company. How long does it realistically take to build up a client base?

 

[Octopus]

I'm in a similar position to the OP and moving to a new area. I'm leaning towards going self employed but also considering buying a company. How long does it realistically take to build up a client base?

In the current climate 3 - 4 years. As pointed out above you could buy a customer base but if they don't like you, you've just thrown money away!

 

[atm84]

I'm thinking more of buying a company that tenders for large commercial projects. In order to do so you need to have x number of years of establishment, good accounts etc. You are then invited to tender. Its not like the domestic market where someone asks you to price a job because they think you are a nice guy.