Own business pros and cons. Installation of equipment in the working and client area

Sale market ready business in Russia is growing year by year. More and more people want to invest money, even if small, in a real business, to try themselves as an entrepreneur. And often the acquisition of an already operating company turns out to be the best option achieving these goals. But only if you approach the issue thoughtfully and thoroughly.

The slightest resistance of the seller in providing information is a danger signal!

When buying a ready-made business, regardless of its specifics, you can use the following algorithm of actions.

Begin entrepreneurial activity(as well as expanding an existing one) in two ways: create new business or buy ready made. After evaluating the pros and cons of the second option, you can decide whether it is right, or it is better to use the first option.

Advantages of a ready-made business:

• History of development, good or bad, which makes it possible to evaluate it.
• Availability of premises and equipment.
• Completed staff.
• Established relationships and distribution channels.
• A finished product (service), sometimes a well-known brand.
• A certain demand for goods (services), the ability to predict its change.
• Detailed financial and accounting reports.

Cons of a ready-made business:

• The equipment may be worn out, and technological processes- outdated.
• The lease may not be renewed.
• Staff may be underskilled
• Counterparties may be unreliable, relations with them could be spoiled by the previous owner.
• Subsequently, debt obligations (unpaid taxes, penalties and customs duties or warranties).

STEP 2. Choose the type of business to buy

To do this, you need to answer several questions:

1. Is there any kind of activity and business that you have dreamed of?

2. What type of business best matches your knowledge, skills and past experience?

3. What do you want to do: production, wholesale, retail or service?

4. Are you interested in import-export business?

4. Do you want to involve your family in work in a ready-made business?

Experts recommend that you first make a choice between production, retail, wholesale and services, then resolve the issue of import-export, and then determine a specific product (service) or market within the selected sector.

STEP 3. Decide on funds

First, decide how much own funds you can allocate to make a deal. Then decide how much money you can and are willing to borrow (for example, from a bank).

Note: the possibility of attracting borrowed money to acquire a business depends on the availability of liquid fixed assets and real estate. If you are acquiring a business that owns such assets, then in most cases 50% of the total value of the business or investment project you can borrow. Your personal assets can also serve as collateral for a loan to buy a new business.

STEP 4. Choose the cost-effective options

Entrepreneurs who want to sell their business place ads in newspapers free ads or in the line ads department of local periodicals, in any business publications or newsletters, on specialized Internet sites. Another source of offers is brokerage companies specializing in the sale of ready-made businesses.

Note: sellers do not always “publicly” announce the sale of their business. The reason is the need for the strictest confidentiality regime, as the announcement of the sale can cause excitement among customers, employees and suppliers. And many potential sellers prefer to use face-to-face networks to find buyers.

Therefore, it is also necessary to make inquiries among friends, acquaintances, entrepreneurs, lawyers, bank employees, accountants, consultants and colleagues. You can also interview suppliers or distributors in the business you are interested in.

STEP 5. Find out the reasons for the sale of selected companies

The previous owner may have several of them:

• Changing of the living place. Lack of direct control and management of the process.
• Disagreements between owners. No joint agreement was reached on the ways of further development of the company.
• Loss of interest in business. After 6-8 years, the activity may simply cease to be satisfying.
• Illness, old age. Limited opportunities for the owner to manage the business, and there are no worthy successors to the business.
• The need for investment in another project. The owner found a more profitable and less burdensome line of business.
• Sale of non-core assets. Some activities large enterprises or holdings are less profitable or do not fit into the overall development concept.

In principle, all reasons can be grouped as follows:

• this business has ceased to bring sufficient profit (there is a recession and decline in the industry business activity; the company is in danger of bankruptcy; weak management; the company is involved in criminal scams, etc.);
• the owner is going to do some other business or diversify his activities; intends to retire for personal reasons; he does not have enough funds to develop the company.

It is clear that the purchase of a company is expedient only when the owner of the company is guided by considerations included in the second group.

In principle, at this stage, out of all the previously selected options, two or three suitable options remain.

In conditions Russian market it is not yet possible to estimate the value of a company based on market value its shares, since only large enterprises are listed on the open stock market. Therefore, when evaluating small and medium-sized businesses, experts recommend using the following approaches: profitable, market and costly.

income approach

With this approach, the value of the company is determined by the amount of expected income. This method assumes that the buyer will not pay more for the business than the present value of future earnings for the period of interest. Using this approach, the buyer calculates various options business development. However, with this approach, the level of risk is often determined too subjectively. This method valuations are good if the company's income is positive and stable.

Market Approach

The value of a business is estimated by comparing the sales of companies of comparable size in recent times. The main condition for applying this approach is a mature market. The value of the company being valued (V1) is determined as the product of the ratio of the market price of an analogue company (V2) and its base indicator (R2) to the base indicator (R1) of the company being valued: V1=V2/R2×R1. The basic indicators are usually: net profit, the book value of the enterprise. When choosing comparable companies, they are guided by the following requirements: the industry of enterprises must match, the quantitative and qualitative characteristics of the company must be approximately equal.

Cost approach

The cost of a business is determined by the amount of resources spent on its reproduction or replacement, taking into account physical and obsolescence. This approach is most effective when the buyer is going to compare the cost of acquiring a business with the cost of setting up a similar business.

There is no clear answer as to which assessment method to use. In each case, approaches are combined depending on the specifics of the business.

Note: at this step, it makes sense to turn to independent consultants, business brokers or professional appraisers. They often play a vital role. After all, determining the value of a business is a process that requires professional knowledge and experience in various areas law, mathematical analysis, economics, accounting and auditing.

At this stage, as a rule, one suitable option remains.

STEP 7. Study the chosen business in detail

If funds allow (and the game is worth the candle!), It is best to turn to professionals again and order Legal Due Diligence (“due diligence”) - a comprehensive check of the seller for “due diligence”. At a minimum, it will clarify the credibility of the legal and financial information check the correctness of the paperwork and their compliance with the current legislation. As a maximum, "due diligence" includes conducting legal and financial audits of accounting and tax accounting, assessing the compliance of top managers with their positions, conducting an inventory of property, etc. to infinity.

If there are not many doubts, and the amount of the transaction is not so large, you can try to do the above procedure yourself: ask as many questions as possible, require reporting, inquire about numbers and models of equipment and dates of their purchase, inquire about business reputation, find out about all the obligations of the acquired company, etc.

Note: the slightest resistance of the seller in providing the information you are interested in is a danger signal!

Serious reasons for concern are also:

1. Shortened rigid time frame for selling a business.

2. Missing Key information by object.

3. Obtaining even existing information is difficult.

4. There is no clear reason for the sale or justification for the reason for the sale is not credible.

5. It was found that at least part of the information about the object was distorted or misinterpreted by the seller.

STEP 8. Minimize possible risks

1. Make inquiries about anything that could potentially harm your business.

2. Find out the status property complex and features of its location. This will prevent problems, for example, in connection with the termination of the lease.

3. It is necessary to rely on facts and, if possible, not to take a word, no matter how trustworthy the seller may be. This is especially true for the volume of profit and turnover of the company, declared by the seller.

4. Offer to conclude a guarantee obligation on the absence of debts that do not pass through the accounting department. It is signed by all founders and the CEO. Legal protection buyer is that after signing warranty obligation they are personally liable for any borrowing by the company during the last three years. In the event of negative consequences, the buyer has the opportunity to send creditors to their real debtor, or, if the case goes to court, file a recourse claim to protect their rights.

5. Lawyers also recommend compiling detailed plan transfer of management powers. This is especially important for maintaining relationships with customers, suppliers, other business partners and employees of the acquiree. After all, it is important for the buyer to maintain a viable business.

6. In the contract with the seller, you must specify that new owner acquires only those debts related to the activities of the enterprise, which are specified in the contract. And the debts connected with the previous activity of the enterprise, do not pass to the new owner. The agreement and its annexes must contain a detailed list of all debts included in the enterprise, indicating the creditors, the nature, size and timing of their claims.

STEP 9. Start negotiating a purchase

If all your doubts are resolved in a positive way, make a formal offer and proceed to negotiations.

Note: sellers prefer not to deal with frivolous buyers, so do not be surprised if you are asked to pay a deposit, similar to what is done during real estate transactions.

As a rule, in negotiations, both parties start with maximum and minimum offers and gradually soften their terms. Therefore, you must determine in advance the price and terms on which you agree to acquire the business. Naturally, start with more favorable conditions for yourself. Be prepared for the seller to meet your first offer with terms you find unfair. This is an inevitable part of bargaining. If your intentions are serious, work towards conditions that you agree to accept.

STEP 10. Get a business!

Reference

Ready-made business sales market: results of 2006

(www.1nz.ru/readarticle.php?article_id=1278)

The most demanded and offered, as usual, are cafes and small restaurants in the price range of $50-150 thousand; hairdressers, beauty salons ($25-50 thousand); car services ($100-250 thousand).

Offers of $10-20 thousand prevail among travel agencies, for which the demand is usually very insignificant. Worthy proposals can be considered travel companies that have not only a travel agency, but also a tour operator license, having their own representatives abroad and contracts with hotels and inns. But the price of such a company will already be from $30,000 and more.

There have been certain preferences in acquiring a business related to the provision of intangible services: consulting, audit companies, educational institutions. Investors are ready to invest in such companies that have existed for more than 5-7 years and have all necessary licenses and permits, up to $150 thousand. Such types of businesses as modeling and concert agencies began to be offered. There were more proposals for the sale of advertising and advertising production companies.

In the field of medicine and pharmacology, there is an oversupply of medical centers and dental clinics and, on the contrary, the demand for pharmacies and pharmacy kiosks exceeds supply.

IN retail there is a significant excess of supply over demand. This is typical for small shops and pavilions in shopping malls worth 30-180 thousand dollars.

Among manufacturing enterprises factories for the production of bricks, blocks, tiles are popular. The buyer can pay up to $ 1 million for such a business, but he must be sure that all old connections and consumers will remain. At the same time, the demand for such a type of business as the production of PVC windows and doors is decreasing. There are proposals for food production (sausage, confectionery shops) worth $400-700 thousand, but the demand for them is low.

Each person who is going to open his own business must first decide what goals he wants to achieve through the planned activities, and is he ready for those unforeseen and difficult circumstances that may periodically arise in the process of doing business? It should be remembered that working for yourself has not only positive aspects, but also some significant and significant disadvantages, due to which every person does not do this.

Pros and cons of owning a business

Positive sides own business

If a person decides to open his own business, painted a car service business plan, then he can easily try his hand at entrepreneurship, evaluate own possibilities and use all available potential, skills and abilities. As a result of these actions, most entrepreneurs receive high profits, and are also completely freed from dependence on superiors and can carry out activities at their own discretion. Usually, entrepreneurs have a lot of free time, and they can also set any tasks for themselves and their employees and control the progress of their solution. As a result of activity, each businessman receives invaluable and necessary experience in entrepreneurship, and also allows many people to get a job.

Negative aspects of own business

However, it is important to take into account not only the attractiveness of your business, but also some disadvantages, which are quite significant and serious. It should be remembered that every entrepreneur constantly risks his own property, in cash and business. He is regularly in tension and experiences stable and fairly large loads. The income of businessmen will never be stable, and it is almost never possible to fully and well enjoy the rest. If necessary, entrepreneurs have to use their own savings to keep the business afloat or to pay unforeseen fines or other expenses.

Features of entrepreneurial activity

Of course, each type of business has its own inherent characteristics and features. Activities related to the production or sale of food products, as a rule, are successful and quickly paid off, however, it should be remembered that various supervisory authorities will constantly monitor this business, and these goods also have a short shelf life, which is associated with possible losses and costs.

Also, a lot depends on the chosen organizational form, since all varieties have specific features that every entrepreneur should be aware of at the registration stage. For example, an individual entrepreneur is liable with all his personal property, while an LLC is liable for its obligations solely with the property of the company. Each organization maintains specific reporting, so individual entrepreneurs can do without professional accountant, since they will be able to fill out all the documents on their own, and the director of the LLC needs to hire a specialist in order to submit to the tax authorities all the necessary and important documents on time, in the right quality and condition.

The profit of any enterprise is influenced by the nature and abilities of the entrepreneur, therefore, before starting the activity, the future businessman must rationally and objectively assess his skills and capabilities.

Therefore, before opening any business, you need to solve a lot of issues, evaluate all the positive and negative points, draw up a competent business plan and consult with knowledgeable people. Only when there is confidence that the pluses significantly exceed the minuses, you can start registration.

In this article we will talk about opening your own business, or rather, the advantages and disadvantages that a novice businessman will have to face.

The dream of many people is to get money by working not for someone else, but for themselves. Someone wants to open a restaurant, and someone wants to establish a whole company. But few people realize how hard it can be. Today we will try to understand the pros and cons of starting your own business.

Cons of your business

1. The first disadvantage of your business is responsibility. Unlike hired work, in your business you will have to be responsible for everything yourself. In the beginning, you may be a salesperson, accountant, janitor and lawyer in your company. And any problem or mistake will not be resolved by a colleague or supervisor. You will have to constantly make decisions on which will depend further development your business or which will lead to its complete collapse.

1. The second big drawback is complexity.. You will have to go to success on your own mistakes, often without even knowing whether you are on the right path. Search start-up capital, establishing relationships with partners, fighting for a place in the market, this and much more will spend you a lot of nerve cells. Meanwhile, you are not guaranteed a quick payback. You need to understand in advance what difficulties you will have to go through.

1. The third disadvantage is the risk. Another daunting barrier for would-be entrepreneurs. No matter how much money you invest, there is always a chance that the business will fail. But, even if it doesn't end that badly, instead of mountains of gold, you can barely make ends meet by working part-time in the evenings to pay bills and food.

These were negative sides own business, let's move on to the positive.

Advantages of your business

1. The first plus of your business is potential. A large income, a free schedule, business autonomy - all this is quite achievable if you make enough effort. You will not have a salary cap and you will receive as much as you earn in each month. You can create your own work schedule. There are certainly more opportunities for an entrepreneur than for an employee.

1. The second plus is independence.. Your business gives you freedom from the desires and whims of your superiors. You will not be tormented by thoughts whether you will be fired tomorrow or not. You will not be delayed wages, will not be pulled out of weekends or vacations, will not worsen working conditions. If you see potential in virtual realms like 3D technology, virtual reality, or new markets like e-car sales, it's up to you to decide anyway.

1. The third positive side of your business - personal growth . Creating your own business is an opportunity to test what you are worth. Overcoming difficulties, solving problems, and achieving your goal - all this is an invaluable experience that will remain with you forever. in no wage job, you will not be as happy about success as in your business. Besides social status for an entrepreneur is higher than for a full-time employee.

1. The fourth plus is a favorite thing. Job search is often tied to your specialty, and not to the area in which you would like to develop. When creating your business, you can choose any direction in which you want to build your business. And also you will select the team with which you will work. If you try, then you yourself will create ideal conditions for yourself to work, which you will do with joy.

So, as you already understood, there were more pluses. Despite all the thorns in the vision of your gave, you still have a chance to break through to the stars. Nobody says that it will be easy, but the result is definitely worth it.

Many ordinary people naively believe that being an entrepreneur means having a lot of money, a lot of free time, and generally living for your own pleasure. Others realize that their business is hard work and do not dare to open their own business. Today we will tell you about the main pros and cons of your own business, which may be useful to you.

Cons of your business

• No guarantee of campaign success. Campaign in this case means the process of creating, launching and operating your enterprise, company. You are able to attract millions of investments, develop a solid plan, find points of implementation, and with all this, there is still no 100% guarantee that your work will be successful and will be able to generate a steady income. This is called risk.
• Tough start. According to statistics in Russia in the first three years of its existence, 90% of small businesses are closed. That is, there is a hard screening for a place under the sun. Moreover, the first 3 years can be called the most favorable, because there are certain benefits, namely: a reduced tax burden, a simplified form financial reporting, reduced administrative control, reduced fines for violations of the law. After 36 months, your enterprise ceases to be young and here you are already beginning to feel all the delights of running your own business.
• financial instability. What is profitable today may be profitable tomorrow. Keep this in mind and do not invest all your money in the development of only one direction. This applies primarily to the development of medium and large businesses, small businesses are more mobile.
• Lack of free time and the need for constant monitoring. If you are just starting to develop a business and your staff is not too large, then the main work will be entrusted to you. You literally have to work day and night to get your business up and running. And even after you have successfully organized everything, set it up and start getting a stable profit, it’s too early to relax. It is necessary to closely monitor the work of your organization, make adjustments in time, and motivate employees.

Your business is a ship, if left afloat, it will sooner or later break on the rocks. It is necessary to turn the steering wheel in time and keep it afloat.

• Great responsibility. If you decide to open your own business, then get ready to be responsible to your family, creditors, regulatory authorities, legislation, and your employees. Directors of firms are responsible for everything that happens in their department, for the life and health of their subordinates. There is no room for sloppiness in this case.
• Unfair competition. One might even say dangerous. IN major cities open profitable business who will be able to survive the old competitors is very fraught. Firstly, they may try to “strangle” your company - these are endless supervisory checks, gossip, provocations. Secondly, the criminal component is threats, racketeering, raiding. Entrepreneurship is not always pure, without the necessary connections it is difficult to develop it.
• Lack of social benefits. If you are your own boss, then forget what vacation, sick leave, paid holidays. At least for the first time. For an individual entrepreneur it is very difficult to allocate additional funds for self-sufficiency, it remains only to wait for profitable times.

These were the cons of their business, but do not be too dramatic. Pluses are also enough and they may well more than cover all the shortcomings.

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Advantages of your business

• You are the boss, god and king. At least within the walls of your office. Just imagine not having a boss. After all, you are a big boss yourself. This means that you are free to make a decision, no one will drip on your brain, give inadequate instructions, yell at you or criticize. People work for you and you command them. You become independent.
• Unlimited income. What is your current salary? 20.30, 50 thousand rubles? What if you say you want to get 200 or 500? Your employer will answer that this is not possible. By working for yourself, you can earn as much as it is possible for you. Of course, we are very far from the first lines of Forbes, but many people can become one of the richest people in their city.
• There are many connections. What are connections - this is a circle of communication with persons who have a certain impact on others. While you are, your social circle is very limited - mostly work colleagues. As soon as you start organizing something of your own, you will learn to communicate with many “necessary” people, to reach even more powerful ones through them. Even communication with competitors can be beneficial, you have a chance to scale the enterprise together or create a monopoly. In any case, you will greatly increase your social circle, which means you will be a more significant person than you are at the moment.
• Increase your adaptability in life. If we take a person who has worked for hire all his life (today such 90%) and an entrepreneur with more than 10 years of experience in running his business, then the second will undoubtedly win in terms of the ability to raise money out of thin air. You will always have time to work for someone, for this you do not need to think, just carry out the instructions entrusted to you. But to be able to raise money in simple life circumstances is not given to everyone.
• Free time . This is not a contradiction of our first part. You will only have free time when you can put your business on autopilot. Make sure that it will work without your participation, but under your close control. It is then that you will experience all the benefits of your work. Lying belly up in the resorts of warm countries and receiving notifications about the transfer of funds to your account balance is the goal to be achieved. Business is freedom, not slavery.
• Opportunity for self-actualization. What do we do when we are employed? In most cases, we do work that we do not like, but at least somehow satisfies our basic financial needs. Working for yourself gives you a chance to do what you really want, what you like. The ability to turn a hobby into an income is happiness.
• Help others. You can not only successfully arrange your life, but also help other people. Creation of high paying jobs favorable conditions for its employees, philanthropic assistance to those in need. You have a chance to become an example of a strong, good man and successful entrepreneur.

Conclusion: Working all your life for your uncle or becoming an uncle yourself is up to you. I can only advise you not to be afraid of your desires, to try to create what you have long dreamed of or thought about. After all, a bad experience is also an experience. Good luck to you, let everything work out!

Any important decision has its positive and negative sides, therefore, before making such a decision, any person weighs all the pros and cons in order to know for sure whether the game is worth the candle. If the pros outweigh the cons, or if the cons are minor compared to the solution's big merits, then it looks like a good solution.

Buying a ready-made business is also an important action, so before you buy a ready-made business, you need to weigh everything. What are the benefits of buying? What are positive points from acquiring someone else's business?

Pros of buying a ready-made business:

• You immediately get a fully working case, which is especially good if you are eager to take action. Do not think that business does not like the impatient - those who want to work actively, who are ready to work hard, in entrepreneurship receive their reward. Some believe that buying a ready-made business almost frees you from labor, because all the main actions have already been completed by another person - a business plan has been developed, an office has been rented, suppliers and customers have been found. But serious business requires tight control and constant development, so even if you get a ready-made business, you have to work for its benefit. And the degree of your attention to it depends on the size of the business and your own goals - the activities of a small shop or a small hairdresser can be entrusted to the manager, and a large growing company needs your constant participation in business.
• When you acquire someone else's business, you almost always receive bonuses from the previous owner: it can be a stock of goods, profitable contracts with suppliers, proven and reliable equipment, a formed base of loyal customers. Such things help in doing business, save money and time.
• Buying a ready-made business is good for those who have never run a business before: preparatory stage opening a company is complicated, takes a lot of time, requires going through the authorities, filling out a bunch of papers. Behind the abundance of such tasks, it is easy to stop seeing ultimate goal and eventually lose the desire to do business.
• A big plus if you buy a business representing a popular brand: a well-known name already works for itself, which allows the company's financial turnover not to decrease, even if at first you make a few minor mistakes in doing business.

Cons of buying an existing business:

• At first, it may be difficult for you to manage a company, since you have no idea about it. internal structure, about the scheme by which the business operates. If you were organizing the business yourself, the whole process would be clear to you. And so you have to spend some time to learn everything. On the other hand, salespeople are often willing to provide consulting support for several weeks, which avoids many problems and facilitates the process of entering the firm's affairs.
• As an outsider, you have no idea about the affairs of the company you are going to buy, so the owner can deceive you: he can provide fake documents that will show the high profitability of the business, but in reality you will have to spend more on the business than you will earn . But this can be avoided - if you use the services of a business broker before buying, he will be able to check the company and provide you with accurate information.
• Together with someone else's business, you get its reputation in the market. If the company that attracted your attention somehow compromised itself, you will get a bad attitude towards it from suppliers, partners, and customers as a burden for the purchase. Of course, all this can also be checked in advance if you turn to an intermediary for help.

Obviously, the positives that buying a ready-made business promises outweigh the negatives, and all the disadvantages can be solved if you check the company you want to buy in advance. Then you will avoid many problems and get a good, profitable business.

Altera Invest is the largest ready-made business and commercial real estate store in St. Petersburg and the Leningrad Region. Our company strives to make the sale of a business a simple and understandable process for you. Altera Invest guarantees full support for the purchase and sale of a ready-made business. We will draw up a contract and control all legal aspects of the transaction.