Fixer-Upper
If you see it's got plenty of potential, you can get that clunker of a business off the lot and running in no time.
You've got guts. That's right—you've got some
serious cojones if you're planning to buy a business
that's failing and, armed with only your brilliance, turn it
around. Some may call it arrogance. On the contrary, we at
Entrepreneur know you're just confident in your skills.
You're eager to learn and willing to believe that not only can
it be done, but you're just the person to do it. OK, now that we've exhausted all the high school counselor
platitudes, you're going to need to know the nitty-gritty,
down-and-dirty practical side of buying a struggling company and
turning it around. For starters, before you put everything you have
into buying a business, make due diligence a top priority. Look
closely at the company's financial statements, customers,
location, competitors, licenses and zoning, as well as its
reputation. Check whether there are any lawsuits or liens against
the company, and find out why the business is for sale in the first
place. "If the person who's selling the business won't
open up [or] give you everything you need to know, don't
walk—run away," advises Marc Kramer, author of Small
Business Turnaround (Adams Streetwise). In your investigation, research the market you're about to
enter as well. "You don't want to buy a business in a
declining market," says Kramer. If the industry is stagnant or
declining, or if all your competitors run the same kind of
business, this probably isn't the right opportunity. You can
look for warning signs by checking out trade associations, talking
to industry experts, going to trade shows and reading trade and
general interest publications. If you end up discovering, for
example, that trade show attendance has been declining or that
industry leaders aren't even able to put a trade show together,
that's a big clue. Content Continues Below
Page 1 | 2 | 3 | 4 
![]()
|
|