Evaluating Business Opportunities in Calgary
Unless you are buying strictly for investment reasons, in which case you will want to look for a strong management team, strong cash flow, and strong growth, the business you buy should be one that you can improve and make your own.
Evaluate the strengths and weaknesses of each each of the business opportunities and ask yourself if you have what the business needs to overcome weaknesses. For example, if the company has weak management, can you put strong management skills in place?
Of course, you still want to know that the business is doing well. What are the revenues? How long has it existed?
Other questions you may want to ask (or get answered through the selling memorandum) include:
- Why is the business being sold?
- Who are the major competitors and how is this business positioned in comparison?
- What trends are occurring in the industry and how might they impact the business?
- What opportunities exist to grow the business and why have these opportunities not been explored?
- Will the seller finance part of the deal?
- Will the seller stay on to provide training?
- Does the seller agree not to compete?