One of the best financial decisions you can make is buying a business. After all, it’s a lot less stressful compared to starting a business from the ground up. There is already a set location, trained staff and most importantly, a client base already established.
On the other hand, as several people who have bought businesses can attest to, it also comes with unpleasant surprises down the line. Those can turn out to be red flags that the supposedly lucrative business is actually a money pit. When that happens, you will likely have to spend thousands for the business to reach a good standing.
It is always best to consult an accountant and corporate lawyers in Brisbane before you buy any business. That way, you can be absolutely sure that you are not taking on something that will turn out to be a pain.
Here are some issues to look out for before purchasing a business.
Outdated Technology
Unfortunately, it is a far too common occurrence for businesses to be acquired without anyone looking into the licenses of the software being used. If the business’ software and hardware basically aged with the business, that could be difficult. Replacing hardware and licenses, along with training your employees how to use them all, can cost you thousands.
Equipment Liabilities
Before you sign the paperwork and fully buy a business, check on the equipment. It is important to take note of which ones are fully paid and which ones are still being paid for. Not knowing the difference might lead to any profit you make going into paying off expensive equipment instead. As a buyer, you have the right to receive the assets without any obligations tied to them.
Incomplete Administrative Access and Logins
It is incredibly vital to have all the administrative access and login details for all accounts, software subscriptions and the like that are relevant to the business. Not having any of them from the get-go can lead to a lengthy, tiring series of call-arounds, e-mail exchanges and frustrating searches. At worst, you will have to replace something very important in its entirety.
Some accounts to check on in terms of access include:
- Accounting Software and Hardware
- Facebook Business
- Google Ads
- Google Analytics
- Google My Business
- Google Tag Manager
- PayPal
- Social Media Accounts (Facebook, Instagram, Snapchat, Twitter, etc.)
As soon as you have closed the deal and the business is officially yours, go ahead and remove the previous owner’s access as soon as possible. It may involve changing emails and passwords, but it is best to be secure.
Conclusion
Taking on a new business, whether you’re a solo entrepreneur or part of a company or organisation, can be very exciting and fruitful. That largely depends on a smooth sale between you and the former owner. Your best bet is to reach out to trustworthy professionals who can work with you in order to begin your journey running a new business.
Do you need to consult a legal firm in Brisbane that you can trust? Contact GLG Legal today! We are an ambitious, innovative, commercial and property law practice that provides real-world solutions to our clients.
