Running your own business can be very rewarding but before you take on this challenge you'll want to make sure you have a good understanding of the pros and cons of owning your own business and if you decide being a business owner is right for you then what steps you'll need to take.  Here's some advice and tips to help you. 

Before deciding to buy businesses first consider the advantages and disadvantages of being a business owner.

 

Buying a business is a serious undertaking and it is important that appropriate legal and financial advice is sought prior to signing any documentation. The franchisor or business seller should be prepared to provide you with sufficient information to conduct a due diligence in respect of the business. You should be wary if they're reluctant to do so.

 

In deciding between purchasing a franchise and starting a new business, ask yourself why you want to own a business? Franchises don't necessarily make more money than other businesses but they have higher success rates. That is immeasurably because "you are in business for yourself without being by yourself".

 

Starting up or buying a business often involves a large capital outlay. If you have insufficient funds or personal worth to meet the initial costs, you may need to consider borrowing.

 

Accounting is not just a yardstick to figure out how much money you made last year or what your tax liability is. Used properly, accounting also helps you identify trends in sales and expenditures. The ability to track and identify trends allows you to make decisions that can quickly boost your profitability or enable you to avoid cash shortages.

 
Buying a business or franchise involves many aspects which you may be unaware of. A lawyer will protect your interests, assisting you in ensuring all important points are covered off and all legal requirements are satisfied. Once you have done the groundwork, investigated several types of businesses and decided on the business you wish to buy, you should contact a lawyer.
 

There are number of attributes of successful businesses. Often this starts with having a clear vision and a solid business plan...

 

There are many matters to consider when selling a business from tax planning and valuing the business through to deciding how to sell.

 
For information on Business Terms and their meanings .....
 

Business Information New Zealand

New Zealand Companies Office

Inland Revenue Department (IRD)

Intellectual Property Office of New Zealand (IPONZ)

Employers & Manufacturers Association (EMA)

Franchise Association of New Zealand (FANZ)

Franchise New Zealand Magazine & Website  

Bank of New Zealand

Westpac Banking Corporation

ANZ Bank

ASB Bank

Kiwibank

 

Disclaimer

This information is provided as a general information service only and should not be relied upon as a substitute for the advice of a properly qualified professional.

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