15/01/2008 by info.

A number of years ago Building societies were sold to bank and with all intents and purposes they now operate as a bank. But not in all respects.

Nationwide Building Society for example do not seem to know what a bank reference/bank status report is, they simply do not provide one in the format required.

So what does this mean to buyers of businesses?

When you buy a leasehold business in the uk, you need to provide a bank reference to the landlord.

Basically if you have been banking with these building societies as your main bank you may have problems providing a bank reference suitable for submission to a prospective landlord. it may therefore affect your ability to buy a business.

Perhaps therefore if you want to buy a business you should be looking at your choice of bank to use.

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31/10/2007 by info.

Franchises are a middle ground for people who might be worried about taking the full risk of establishing their own businesses.

And if you choose the right franchise opportunity statistics show that you have a much greater chance of making money with only 7% failing according to a Nat West Franchise survey.

Compare this to a 50% failure rate in new businesses in the first few years of trading.

The franchise industry is worth in excess of £10 billion to the national economy and employs over 370,000 people.

Franchise re-sales because they are invariably part of an established brand with a track record are THE most risk free business opportunity a buyer can choose, not only do they have the support of a larger business but also the hard work has already been done in establishing the branch.

So perhaps buyers should look more favourably on franchise re-sales.

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24/04/2007 by info.

What is the most important thing a buyer should know when they want to buy a business?

The answer is not a detailed knowledge of business values, or to know how to run a business, these although importnat can be learned.

The most important thing to a buyer is to search for businesses which you can afford.

I answer buyers questions on the businesses for sale buyers forum at www.businessesforsale.com.  Direct link http://tinyurl.com/ypq9lq. 

On this forum are so many potential “business buyers” who spend time enquiring about businesses which they actually do not have the money to buy.

Perhaps they think that a bank will lend them all of the money, but the fact is that for a leasehold business you need all of the money in some format or another.  So if a business is advertised at £50,000 plus stock of £15,000 you would perhaps need c. £70,000 to buy that business in one format or another.

So the most important thing a buyer needs to know is how much money is actually has, and whether he can afford to buy a business in the first place.

Knowing this will save him (and sellers) a considerable about of energy and time.

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