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. You should
get professional advice on the hurdles you face and the sources of finance available. You may also need further training and you will certainly need
support from your family and friends.
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 in the UK). 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.
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