Should I start or buy a business?
Statistics show that something like 4 out of 5 new businesses fail within the first two years.
Not all of these people lose money - a lot of them just decide that running their own business
is not for them or they do not obtain enough business to make it worth continuing. So even if
you have the most original idea for starting a new business you should be highly sceptical about
starting up a new enterprise. Your first port of call should be your local TEC (Training and
Enterprise Council in England & Wales, LEC in Scotland); their address can be found in The
Phone Book. They can advise you on the hurdles you face, the sources of finance available and
provide you with both training and support.
If you are buying an existing business you must seek financial advice to ensure that you are
getting a good deal. You should get a qualified accountant to go over their books to check that
everything is above board. Running a credit check on the company through a credit check agency
would also be a good idea as would obtaining any accounts filed with Companies House (a legal
requirement for limited companies). If no accounts have been filed, or they do not tally with
the books, or the accountant you have hired is wary of the company, it would probably be advisable
not to proceed with the purchase. Obtaining legal advice from a solicitor on drawing up a contract
is also a sensible option.
Next: 8. Do I want a job close to home or
in another region or abroad?
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