It offers freedom and huge personal satisfaction, the chance to be in charge of your future and to do something you love: no wonder so many people are looking to revamp their careers by becoming their own boss
Taking over an established business with a good track record is an ideal way to get going.
Here is our guide to taking your first steps towards running your own business with property experts Ernest Wilson.
Don’t think running a company is for other people – anyone can buy a business. You don’t need previous experience or a university degree to run it either; common sense and enthusiasm are usually far more important.
You don’t necessarily need lots of savings in place. Banks and building societies take many factors into account when it comes to lending for a business purchase, so it can pay to chat through your ideas with the experts as you could be in a better position than you think.
You may dream of a small Post Office in the countryside or a busy hairdressers’ salon in a city centre. Perhaps you love working with animals, or fancy putting your culinary skills to the test in your own tea shop?
Looking for a business that really strikes a chord with what you’re interested in – and matches your skills – makes sense, but keep your options open too.
Think through what might be involved in running your business and how it will fit in with your lifestyle. Remember certain businesses might come with accommodation attached, you may need to employ staff or running it may involve extra investment for stock or advertising. There may be insurance costs to consider or licences to pay.
There are dozens of businesses currently available through Ernest Wilson, ranging from small sandwich shops to well-established restaurants, leisure and retail businesses and bed and breakfast accommodation.
Freehold or leasehold?
Freehold means you’ll buy the business and property outright. Opt for a leasehold, and you’ll buy the business, lease, fixtures and fittings, and the business premises are rented or leased from a landlord in return for a weekly, monthly or quarterly rent.
Bear in the mind the difference, so you know exactly where you stand.
Boost your income
Many people buy a business as a second income while their partner holds down a job.
According to Ernest Wilson, many of their clients find the second income pays for life’s extras like holidays, home improvements and new cars, while the main salary pays for day-to-day expenses.
Turnover and profit
Often you may see a weekly turnover mentioned in adverts for businesses.
Turnover can be anything from a few hundred pounds to tens of thousands, but remember, it’s simply what goes through the till. The gross profit is sales (turnover) minus the cost of the goods or services.
Every business is different, but the gross profit for some can be higher than others. A fish and chip shop, for example, will often achieve 50-60 per cent gross profit. Newsagents can be a little less at around 18-25 per cent, while hair salons often achieve up to 75 per cent. A florist can be between 30 to 55 per cent, while restaurants, sandwich bars and snack shops tend to be in the region of 50 to 60 per cent.
Net profit, the money you ultimately earn from the business after all the expenses are paid, is what really matters.
Are you ready to take the plunge into running your own business?
Ernest Wilson has more than 60 years’ experience helping prospective business owners take their first steps towards becoming their own boss.
Find out how to get started and browse through dozens of businesses that are currently on sale at www.ernest-wilson.co.uk or call 0113 238 2900.