Many people dream of being an entrepreneur. By purchasing a business, you often can sell goods and services that have instant name recognition and can obtain training and ongoing support to help you succeed. But like any investment, purchasing a business is not a guarantee of success.
Before Selecting a Pet Business
Before investing in a particular business, carefully consider how much money you have to invest, your abilities, and your goals. The following checklist may help you make your decision.
Your Investment
* How much money do you have to invest?
* How much money can you afford to lose?
* Will you purchase the business by yourself or with partners?
* Will you need financing and, if so, where can you obtain it?
* Do you have a favorable credit rating?
* Do you have savings or additional income to live on while your new business grows?
Your Abilities
* Does the business require technical experience or relevant education, such as pet grooming, dog training, or veterinary licenses?
* What skills do you have? Do you have computer, bookkeeping, or other technical skills?
* What specialized knowledge or talents can you bring to a business?
* Have you ever owned or managed a business?
* Can you relate to animals as well as to people?
Your Goals
* What are your goals?
* Do you require a specific level of annual income?
* Are you interested in pursuing a particular field?
* Are you interested in retail sales or performing a service?
* How many hours are you willing to work?
* Do you want to operate the business yourself or hire a manager?
* Will business ownership be your primary source of income or will it supplement your current income?
* Would you be happy operating the business for the next 20 years?
* Would you like to own several outlets or only one?
Selecting a Pet Business
Like any other investment, purchasing a business is a risk. When selecting a business for sale, carefully consider a number of factors, such as the demand for the products or services, likely competition, the current business owner’s background, and the level of support you will receive.
Demand
* Is there a demand for the business’ products or services in your community? Is the demand seasonal? For example, dog boarding may be profitable only in the summer or winter. Is there likely to be a continuing demand for the products or services in the future? Is the demand likely to be temporary, such as selling a fad food item? Does the product or service generate repeat business?
Competition
* What is the level of competition, nationally and in your community? How many competing companies sell the same or similar products or services? Are these competing companies well established, with wide name recognition in your community? Do they offer the same goods and services at the same or lower price?
Your Ability to Operate the Business
* Sometimes, businesses fail. Will you need the seller’s training or other assistance to succeed? Will you have access to the same or other suppliers? Could you conduct the business alone if you must lay off personnel to cut costs?
Name Recognition
* A primary reason for purchasing a business is the right to associate with the company’s name. The more widely recognized the name, the more likely it will draw customers who know its products or services. Therefore, before purchasing a business, consider:
* The company’s name and how widely recognized it is. — If it has a registered trademark.
* How long the business has been in operation.
* If the company has a reputation for quality products or services.
* If consumers have filed complaints against the business with the Better Business Bureau or a local consumer protection agency.
Seller’s Experience
* Many business owners operate well-established companies with years of experience both in selling goods or services and in managing a successful entreprise. Some business owners started at a very young age. There is no guarantee, however, that a successful entrepreneur can successfully manage an established business.
* Carefully consider how long the seller has managed the business. Do you feel comfortable with the seller’s expertise?
Know What Type of Business is Right for You
* An seller may attempt to convince you that an opportunity is perfect for you. Only you can make that determination. Ask yourself the following questions:
* Have you considered working in the pet industry before?
* Can you see yourself engaged in that line of work for the next twenty years?
* Do you have the necessary background or skills?
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