Comments on: Personal Goodwill versus Business Goodwill http://mybusinessagency.co.uk/2009/03/10/personal-goodwill-versus-business-goodwill/ Advice and news about buying and selling a business Sun, 20 May 2012 00:41:48 +0000 http://wordpress.org/?v=2.2.1 By: Trevor Jones http://mybusinessagency.co.uk/2009/03/10/personal-goodwill-versus-business-goodwill/#comment-282 Trevor Jones Tue, 10 Mar 2009 10:00:40 +0000 http://mybusinessagency.co.uk/2009/03/10/personal-goodwill-versus-business-goodwill/#comment-282 Buying a business where 75% of the turnover is from one company is very close to ‘all the eggs in one basket.’ It’s common sense not to adopt this precarious model in your own business let alone when considering purchasing a going concern. In the current climate with corporate companies going into administration there is no guarantee that large businesses you deal with today will be around tomorrow. A more common example is a change in management and a new buyer coming in and subsequently passing the business to suppliers they have used in a previous employment. When considering buying a business you need to ensure you carry out extensive market research and not let your heart rule your head. Buying a business where 75% of the turnover is from one company is very close to ‘all the eggs in one basket.’
It’s common sense not to adopt this precarious model in your own business let alone when considering purchasing a going concern.
In the current climate with corporate companies going into administration there is no guarantee that large businesses you deal with today will be around tomorrow.

A more common example is a change in management and a new buyer coming in and subsequently passing the business to suppliers they have used in a previous employment.

When considering buying a business you need to ensure you carry out extensive market research and not let your heart rule your head.

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