Talk Business

SETTING UP SHOP
TALK MONEY
Buying a
business
vs.
starting a
business
Serial entrepreneur Mark Mills,
who has founded and sold several
of his own businesses, discusses
buying a business
Entrepreneurs are
generally people who
will do something
for passion. They are
aware there will be a
period of hard work before the
company is up and running,
and are prepared to give all
their time to this, with no
guarantees at the end of it. This
requires a level of dedication
unprecedented in normal
working life.
People buying into a preexisting
business are more
focused on the capital value of
their decision. If you buy an
existing company, then you
know there is already some
momentum behind it and
the brand may have already
accumulated value.
At the same time there has
to be a lot of due diligence,
not just over the numbers but
also over the finer details. The
position of every stakeholder
If you buy an existing
company, then you know
there is already some
momentum behind it
should be checked, from
the landlord to the staff, the
customers and suppliers. I
would always be sure to meet
with members of staff before
parting with any money and
ask each member of the team
individually; “If you were
the boss, what would you do
differently?” This is a great way
to find key ways in which the
company can move forward. It
also shows your staff that you
will be the kind of boss who
listens to them.
A buyer will always face the
challenge of getting the staff on
side. This can be particularly
onerous in a small business
where staff generally feel
loyalty to the founder. The new
owner may be charismatic,
but change will always make
people feel anxious. You have
to set people’s expectations
repeatedly and reassure them
that they are still in a job
talkbusinessmagazine.co.uk
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