PODCAST: “How to Avoid Losing Money When Buying a Business” with Lorraine Pirihi from ReLaunch Your Life

PODCAST: “How to Avoid Losing Money When Buying a Business” with Lorraine Pirihi from ReLaunch Your Life

Relaunch your Life

Recently, Lorraine Pirihi from “Relaunch your Life” and I had a good chat about “How to Avoid Losing Money When Buying a Business” (audio is below).

The key aspects of which are summarised here:

• Not certain of what to buy?

• You can spend a lot of time looking at a broad range of businesses.

• Whilst keen at the start it can be energy sapping in the long run if you’re uncertain of what to buy.

• Financial limitations

• Do you have an understanding of what you REALLY can “afford”?

• Can you pass the “sleep at night test”– losing sleep might indicate that you are over stretched!

• Procrastination

• Often after finding the right business that matches your criteria, you may continue to procrastinate with the decision to buy

• Lack of preparation

• Due to lack of preparation, you may not able to identify an opportunity even if you find one. Often buyers regret missing the opportunity after the business was bought by others.

• Seeking the perfect deal

• You may appear stuck in the buying process, and over analyze businesses with the focus on identifying actual or potential issues, thereby talking yourself out of the transaction.

A full transcript of the interview can be found here.
Follow along with this audio…

Podcast: How to Avoid Losing Money Buying a Business – a conversation with Lorraine Pirihi by Denise Hall on Mixcloud

Podcast: Why Start with the End in Mind when thinking of selling your business?

BusinessSuccessRadio

Denise Hall talking Why Start with the End in Mind on businesssuccessradio.com.au by Denise Hall on Mixcloud

The most important place to commence to “start with the end in mind” is “Why”…
Why did you go down the path of setting up your business?
For what purpose does it serve?
Why do you now want to move on?
Why should a buyer be interested in taking this off your hands?

With any “why”, there has to be two parts…
a) why the world is a better place as a result of doing business with you (the external driver of the business)
b) why you set up your business the way you did (the internal driver)

If your solo reason for setting up your business was so that you had more flexibility over your working hours for example, then that would not be nearly as attractive as say, solving world hunger at the same time (assuming that was the market the buyer is in).

Emphasis on the personal only ie “b)” is interesting in terms of your history but it only forms part of the story. It’s imperative that there is a larger story at play at the same time, so that the attraction to the business from the external continues whether you are part of the mix or not.

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