General
What To Look For When Looking For A Company’s Strengths and Weaknesses
Buying a business is a big deal. As with any other high-ticket item, it’s important to know all the details going in. When buying an established business, this includes looking at the company’s strengths and weaknesses.
Here are a few tips to consider when looking at a business’ strengths and weaknesses:
- Money matters: The business needs to be forthcoming and transparent with its financial status and history.
- Solid business plan: A strong business plan is essential. In addition to financials, a business plan should include thorough information on competitors, an organizational flow chart with bios on key team members, and a comprehensive marketing plan.
- Company culture: It’s important to understand the company’s value and atmosphere. This is difficult to put on paper, so it will require spending time in the office and getting to know the employees. Company culture also includes employee training opportunities.
- Integrity: Along with company culture is the company’s integrity. Find out how they treat their customers, how they speak of competitors, and be sure to know all the company policies to make sure they are fair.
- Looking at the future: Even though the company is being sold, did the management have a long-term vision? Is it a company that has been taken care of and has been set up to succeed?
It should be noted that these are not deal-breakers. It’s important to know the true status of a business to see if any factors can be overcome. For example, a company that has done well, but doesn’t have a long-term plan may be a great buy for someone with a vision, who doesn’t want to start from scratch. A financial phenom could take less-than-stellar finances and turn it around.
If you would like more information on the ins and outs of purchasing a business, the team at Sunbelt Business Brokers of Durham is ready for you. Contact us at https://www.sunbeltnetwork.com/durham-nc/ now for a consultation.
