Take it from one who knows

Robert Ward knows a little something about starting, selling and buying businesses having done all three with the same business.

He started the financial services business Robert Ward & Associates in 1984, sold it in 2003 to a sport and media company, and bought it back for a fraction of what he paid three years later when its owner went into liquidation.

Well qualified to speak about the subjects, Robert offers BOB his advice to prospective buyers and sellers, as well as people setting up their own business.

If you are thinking of selling

“Know as much as you can about who you are selling to.

“Can you walk away from the sale with cash? If you can – take it.

“If you can’t and if you have to take paper, make sure you have a short-term exit route.

“It’s more important to know who you are selling to if you are going to take paper.”

If you are thinking of buying

“Question how much you really know about the industry and the business you are potentially buying into. This is fundamental.

“Consider to what extent the business relies upon the person you are buying it from. In many cases when the owner leaves the business halves – and what will you as the buyer be left with?

“If you think this is going to be the case, don’t buy it – unless you are part of the business.”

If you are thinking of starting

“Again, question how much do you know about the industry – do you know enough?

“Make use of the organisations that are out there to help you, eg, Business Link.

“If you have to borrow money, never put your house up as collateral. It doesn’t matter if you extend your mortgage, just don’t give them your house.

“If you are someone who likes the nine-to-five aspect of working – DON’T BRANCH OUT ON YOUR OWN. Be prepared to work 12-hour days.

“Look your partner straight in the eye and make sure they fully support you. You won’t see your partner or your family much when you start or buy a business. It will take a massive toll on your home life.

“No one does anything unless you do. No one else signs the cheques, no one else works as hard as you do – these are the facts of running a small business.

“But it’s a great life and if you can do it, do it. It is the freest, best life you can possibly lead.”

Ubops.com The Business Opportunities Marketplace