Think before you leap -1

I won’t call myself a successful business owner, but an experienced one for sure. But some of the  lessons have been very expensive. The grass is always greener on the other side, and this is especially true if you are working for tyrant as a boss or are going through the phase where you just are dissatisfied with your job.This when the temptation of striking out on your own and joining  the perfect world of  freedom, with no boss, flexible timings lures you .

Before you quit your job and follow your dream ( honestly I have a new dream every night), here are some quick tips to  keep in mind.


1. Business should never be started when you are out of job or mad at your boss. Whenever you are looking to buy a business or strike out on your own, do it when you are doing well in your job. You don’t want to invest in something just because you are dissatisfied with your job. Basically, make sure your decision to establish a new venture, is not clouded by any negative emotional state .And now that you are in a happy state and are still thinking of buying a business go to step 2.

2. Get a good realtor: Remember realtors get paid commission on sale, so make sure your realtor is an honest person. Number can be played around with, accounts can be messed with, and realtors actually don’t care whether you succeed or not, so it is buyer beware! Ask for second and third opinions from people you trust.

3. Take your time – don’t let the realtor pressurize you. Negotiate on the price – most businesses are overpriced and there is always room for negotiations.

4. Remember to calculate your monthly loan payments if you are taking loan for the business.

5. The business may be priced right and you are happy with it, but make sure you sit down and calculate the monthly expenses too. We assume that once we take over the sales will go up, but in the meantime, the rent, hydro and other fixed expenses are not going anywhere.

6. Working capital: Now this is one step many of us tend to miscalculate. In our zest for the new business, we forget that there is a time gap till the business actually starts to make money. I cannot emphasize enough how important this is. Presuming your household expenses are being paid by a second source of income, you still would have to pay for business licenses, phone connection etc. and of course advertising and don’t forget to add source deductions, GST payments, vacation pay, accountant’s fees, bank fees, debit/credit card fees into it. . Most new independent businesses close up within a year or two, because they don’t have enough funds to sustain.

Like with everything else in life, make sure your business is easy to resell. Life changes and we can be prepared and plan for everything, and I might get lot of flak for saying this but the factor of good luck plays a vital role too.