Hello ! I am a young 23 year old entrepreneur who is also a lpn! I was looking into buying a business not sure which one or what type but something that is already rolling and was wondering if you guys/ladies had some very valuable tips for me ? As far as anything like what businesses to stay away from or what to look out for ? Thanks in advance !
Do you have any experience in a given industry? Buying an IT services shop is not in any way similar to buying a bakery.
I would start with a service based company instead of a consumer product company. You can learn a lot of skills and develop systems. Look for companies that are ran by owner who are stuck in the past. Example, paper invoices, terrible website. No online presence. These are low hanging fruit for young people to implement. It’s easy to buy an invoicing software, CC machine, hire a web designer/marketing team, Learn google adds start a Facebook page. If they already have a solid reputation and customer base. It will grow much faster than you think
If you’re considering this, read the book “buy then build” by walker diebel. It’s very technical and gives you tons of insights you’ll want to avoid expensive mistakes.
Business broker here. “Buy Then Build” is a solid place to start.
Considering age, college (LPN), you could not have more than a year or two under your belt as nurse.
This means you have no prior business ownership or management experience.
Unfortunately, you can’t get this from reading a book.
My advice is to keep your day job and take part time job(s) at convenience store, quick service restaurant, or similar.
This will allow you opportunity to get you feet wet and learn what is involved in managing day-to-day operations of a business.
Unlike your current salaried position with institution, there is no safety net after you buy the business and give up day job. You are on your own.
If you can buy your own business at the age of 23, it’s a great thing
Absolutely, starting your entrepreneurial journey by acquiring an existing business is a great way to step into the world of business ownership. Here are some valuable tips to consider:
Identify Your Passion and Skills: Look for businesses that align with your interests, skills, and experience. As an LPN, you might consider healthcare-related businesses, but don’t limit yourself – explore various industries to find the best fit.
Thorough Research: Conduct extensive research on potential businesses. Look for industries with growth potential, stable revenue streams, and a solid customer base. Investigate the market, competition, financial history, and future prospects of the business you’re considering.
Financial Due Diligence: Examine the financial records, including cash flow, profit margins, debts, and assets. Understand the valuation of the business and hire professionals like accountants or business valuators to assist in the evaluation process.
Reasons for Sale: Understand why the current owner is selling. It could be retirement, declining profits, personal reasons, or industry changes. Ensure that the reason for sale aligns with your goals and doesn’t indicate underlying issues with the business.
Legal and Compliance Check: Verify licenses, permits, contracts, leases, and any legal obligations associated with the business. Ensure the business complies with regulations, avoiding any surprises after acquisition.
Customer Base and Reputation: Assess the customer base, customer satisfaction levels, and the business’s reputation in the market. A loyal customer base is a valuable asset.
Employee Status: Understand the employee structure, their expertise, and their contractual obligations. It’s essential to know if key employees are planning to stay post-acquisition.
Technology and Processes: Evaluate the technology infrastructure and operational processes. Determine if there’s a need for modernization or upgrades and factor these costs into your considerations.
Negotiation and Terms: Be prepared for negotiation. Don’t hesitate to negotiate terms that are favorable to you, including the sale price, payment structure, and any contingencies based on performance post-acquisition.
Seek Professional Advice: Consult with experts, such as lawyers, accountants, and business advisors. They can provide valuable insights and guidance throughout the acquisition process.
Remember, each business has its unique set of challenges and opportunities. It’s essential to assess your risk tolerance and vision for the future before finalizing any acquisition. Take your time, do thorough research, and make an informed decision that aligns with your long-term goals.