Most of us want to get over the difficult phase of starting up a business and opt taking up 'buying' as an option. However buying a business is not necessarily a very good idea as compared to a start-up. A business that already exists is deemed established and not saleable since, it's perceived to profit making, but if the owner wants to sell, then it means there is little income being generated by the business.

In fact, buying a business is dogged by controversy. I have had experience in cyber cafes. I made a mistake of buying one and I regretted the decision though later on I turned the business into an office for managing other similar businesses. The first question you should ask yourself when bidding for a business is 'why is the owner selling the business?

Consumer dissonance is the key element that forces someone to sell a business. This means the existing clientele is unhappy about the services being offered. Also, the clientele has already decided to shun this facility/business hence the business and the owner are blacklisted in the locality. Based on these demographics, it is not bad to develop cold feet and decide not to venture in buying a business.

However, unless it's a friends business and you have an idea of what the turn over was, plus the reasons why your friend wants to sell this business, then you need not develop cold feet. You can buy this business. However, do not invest in buying a business if you have no idea why it's being sold and what its clientele feels about it.

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