Hi Everyone well at the moment i really want to buy a business and leave my current boring govt job which is only making enough money to surive on. I really want to buy a business because i have the equity in my two houses. My concern is what is a good business which provides a good positive cashflow and what income should i be looking at least to gain so that i can buy more IP's and build up my Net worth.
I am very keen to do it but just need some advice any people currently in their own business?
any advice or tips would be appreciated as i am ready to just walk out the door from this job. What should i do finance wise before i do decide to pull the pin.
thanks for any help.
Hi Pos, Why not become a Real Estate Agent? If you are a reasonable people person you can make a very good living and you don't have to buy the stock that you sell. You will also be able to study the investment market and have a good idea on values so you will be a step ahead of most when recognising a good deal when you see one.
Mind you, on the down side, you will have to learn how to deal with all of the public who by and large won't believe a word you say, won't trust you, know more than you do and generally dislike you. On the up side, every now and then someone comes along and restores your faith in human nature and you will become very good friends.
Jon
To buy a good, profitable and well priced business requires good knowledge of businesses to start with. If you have never run a business, or have never bought one, then you must deal with or through a suitable accountant.
Any business you find for sale can be scrutinised by your accountant. He/she can evaluate the figures presented, assess the viability of the business and recommend a buy price, or tell you to walk away etc.
This could be very important to protect you from being ripped off; especially if you are putting you home equity on the line.
Buying businesses carries different LVR's to properties; you may have to put in more deposit than you are used to with property; the accountant and/or Mortgage Broker will be helpful to set up your finance and loans for this purpose.
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