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About Lee Lister
Expertise
If you are a serious entrepreneur and want to set up your own business or ensure that your existing business is more profitable then let me assist you. I answer questions on business start up, business strategy, business models, business planning, marketing plans, marketing strategy, branding, business tune ups and business improvement. I do not answer any legal or accountancy questions - you should see your own professional adviser about these. If you cannot be bothered to read and rate my answers - I can't be bothered to answer yours!

Experience
Over 20 year’s management, IT and business consultancy experience with businesses large and small as well as being a serial entrepreneur.

Publications
A prolific writer and published author, I write on entrepreneurship, project, bid management and career improvement.

Education/Credentials
BA (Hons) Financial Economics Numerous Management Qualifications

You are here: Experts > Business > Small Business: Canada > Starting a Small Business > Business

Starting a Small Business - Business

Expert: Lee Lister - 11/1/2009

Question
Hi Lee, I have been in my own very small business for 18 years now. I stayed this way because it always worked. Economy is different now. I am looking at a very large business to purchase. At least it is large to me to go from working alone to about 15 employees and large building. What advice can you give me to being careful in the purchase of this business and real estate?
If it matters this is a steel distributor and there is extra services also if customer wants.

Answer
Hello Phil

You do not give me very much information to go on so the only real answer I can give you is:

1) Be careful to not overstretch yourself - be absolutely sure that you can afford the new business. There is very little support available from the banking authorities.
2) Make sure that people really want to buy want you want to sell. Do extensive market investigation before you commit anything.
3) Find out the real reason someone is selling the business - perhaps they are finding it hard going as well.
4) Decide if it is cheaper to buy a business or set your own one up from scratch.
5) Be sure that you are purchasing a lot of active accounts with the business. In the UK this is called "good will" Google it to get a full explanation of the term as I don't think you use it in the USA.

These articles might assist you:

Entrepreneurs – Is It A Window Of Opportunity Or A Brick Wall?
By: Lee Lister - The Biz Guru
http://www.articleshut.com/index.php?page=article&article_id=26933

Entrepreneurs - How Can You Start A Business During A Recession?
By: Lee Lister - The Biz Guru

http://www.articleshut.com/index.php?page=article&article_id=28854

Good luck

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