It doesn’t matter who you are, where you live and what you do as you will all need the same professionals to talk to when buying a business. Therefore it is important to have the right networks to gain the best advice.
When it comes to owning in business you will find that all successful business owners have a great network of professionals to call upon when needed.
So who are the professionals you need in your network?
The Accountant should really be your first contact for advice and they will be able to explain all the implications regarding Tax, GST, CGT, and ownership structures such as Sole Trade, Partnerships, Companies, Trusts and other entities. They will also be able to check over the Form 2 which discloses the financial information about the business you are looking to purchase. They will be able to assess the viability and whether you are offering the right amount for that particular business. It is always best to talk to them first so that the purchase contract has all the right boxes ticked. Without their advice you could well be paying too much and this could make the purchase be a very costly acquisition.
Mortgage Broker / Business Banker
A good broker or banker will make sure that your finance is all in place and will ensure the transaction goes through smoothly. It is really important to check your financial situation and find out what your lending capability is before signing a contract. You can even speak to them before you even go looking for a business so you know how much you can afford. It is also very important that the contract has a subject to finance clause included to protect you just in case the finance does not get the final approval when the time comes. Purchasing a business is very different to purchasing property so make sure you do your due diligence first.
The right legal advisor will ensure that you have set up everything to protect your family and assets. They will also assist with choosing the right business structure, protection of your intellectual property and can put in place estate planning documents such as a will and power of attorney.
If you are purchasing a franchise then your solicitor can also advise as to what the implications are in the very detailed franchise agreement that you are likely to have been provided with.
At some point all business owners are going to need legal advice. Lawyers have different areas of expertise and can help you with a range of issues at any stage of your business lifecycle.
A financial adviser (also called a financial planner) will help you develop an overall financial strategy for your business. Your financial adviser will be required to collect detailed information about your financial situation and will provide advice on investing, superannuation, retirement and succession planning, risk management, insurance and tax.
Getting the right insurance is an important part of managing your business’s assets, employees and legal liability. Many businesses consult insurance brokers to help them make the right insurance choices. Qualified brokers understand the insurance market and can negotiate competitive policies on your behalf. They will put together a comprehensive and cost-effective insurance package for your business.
The term consultant describes a wide range of professionals with different skills or expertise who will be able to give you advice about specific areas of your business (e.g. management, IT, human resources, sales and marketing etc.). Consultants generally work for a consultancy firm or are self-employed and may have different levels of experience and knowledge, so finding the right consultant is vital.
Your conveyancer will work with all the other members in your network to make sure everyone is on the same page. Getting them on board before you sign is the best thing you can do. Make sure that you talk to a conveyancer early and discuss everything with them so that they can point you in the right direction. They will look over the contract and discuss all aspects of this with you and the other professionals you have employed.
Communication is the most important part of getting it right! Therefore, everyone will need to be on the same page and be able to understand what you are trying to achieve.
Remember talk to the professionals in your network before you start the process of even looking for business. Being fully informed before you sign will save a lot of headaches and should ensure a seamless stress free process.