‘No question is stupid’ when buying a business

Posted 24/01/2011

People looking to buy an existing business have been urged to ask plenty of questions before they take the plunge.

Writing for SME News and Information, entrepreneur and expert Andrew Rogerson said it is important to consider the company from every angle in order to make sure that acquiring it would be a sensible financial move.

For example, he recommended asking how diverse the supplier base is and how the business could be expanded, as well as whether there has ever been any significant negative press surrounding the firm.

This could help the would-be buyer to see if they will be able to replicate or better the current operations so the company does not go into decline.

“There is a saying – no question is a stupid question – and this especially applies when buying a business,” Mr Rogerson commented.

Earlier this month, Cathryn Hayes, head of franchising at HSBC, said people considering start-ups should draw up a proper business plan and go to see their bank, as they are still willing to offer loans and funding.