Business Partnership South Wales
No business, big or small, was able to escape the impact of the COVID-19 pandemic – with over a year of restrictions, lockdowns, and uncertainty always likely to take its toll. However, Michael Wright at Business Partnership South Wales wants to reassure local entrepreneurs that the buzz around business in the area is returning to post-pandemic levels with a significant increase in demand to either sell or buy e-commerce as well as medicinal health sector and herbal remedies businesses.
With 61% of small business owners saying they have had serious financial concerns at some stage of the pandemic*, buying an existing business may be a more stable option post-COVID for entrepreneurs. Michael shares his checklist for any local budding business owners so they can identify an existing business to purchase:
- What is your goal? Being clear about your reasons for becoming a business owner will help you to find a business that will achieve your goals.
- Is the business doing well? Buying an existing business most likely means it will come with an established customer base and brand. Ideally, it will already be profitable when you take over.
- Why is the business for sale? Owners selling up to retire or move away will be happy to tell you about their reasons. If the current owner is reluctant to discuss why they’re selling up, this could ring some alarm bells.
- Will there be any extra costs? Make sure you know how much you’ll need to spend to keep the business running. You don’t want to encounter any unexpected costs.
- Is this business the right fit for you? Businesses need the right person to run them to succeed. As well as evaluating the business, you should think about your own experiences and interests when considering the type of business you might buy.
“The continued uncertainty and economic challenges mean business owners have had to make difficult choices. Whilst some are pulling in and making cuts, others are taking decisive action to make sure that when the crisis ends, they’ll be stronger than they are today. The pandemic is likely to significantly accelerate the shift to digital and therefore shake up the business landscape,” said Michael.
The UK average loss of income due to the pandemic stands at £15,673, with the estimated total cost of Covid so far for business owners in Wales at £16,520. However, despite financial losses, business owners are feeling positive about the future, with 25% estimating they’ll return to pre-pandemic levels of trading by spring or summer 2022*.
To avoid start-up failure, considering an existing business should be an option. Businesses that are already up and running provide you with the opportunity to build on existing systems, meaning you won’t have to set everything up on your own accord. If the business has existing customers, you will start generating an income from the get-go. You can also continue relationships with suppliers, employees, and other key people.
If you’re looking to sell or buy a business and need the right guidance, get in touch with Business Partnership South Wales at https://www.business-partnership.com/south-wales-michael-wright/