Font size: Decrease font Enlarge font

The act of acquiring a business is a direct opposite of starting a new business that has never existed before.

However, both actions amount to making an investment decision and thus come with feelings of excitement and fear simultaneously. 
This is normal as most, if not all, investments have advantages and disadvantages.

Now, buying a new business can be a way of diversifying an investment portfolio or it could just be the bedrock of an investment portfolio.
Below are a few steps you may need to consider before acquiring a business.


The first step to consider is the nature or type of business and whether you have the passion, skill and experience to run the business.
For example, is it a restaurant? If it is a restaurant, do you have at least, basic cooking skills or hospitality industry experience?

The second step to consider is whether you have enough capital to acquire the business. If not, where can you get the capital to acquire the business.
You can try Fincorp or any of the local banks in Eswatini for assistance with funding for acquiring a business.

The third step is to understand your reason or objective of acquiring the business. Is it to diversify your income sources or to earn livelihood, i.e., create main source of income?

Understanding your reason or objective will help you stay grounded and look into the future when the chips are down in the business and trust me, they will; remember fluctuations in business are normal.
The most important factor to consider is the finances of the business you want to buy – focus on the real cash inflows and outflows on a weekly and monthly basis.

Get an idea of the actual money that is flowing in and out of the business and do not dwell much or place high premium on projections.
The second factor to consider is the reputation or goodwill of the business.

ocustomers say about the product or service offered by the business you want to buy?


Lastly, you need to consider the location of the business. Is it in an accessible and safe area? Is it in a densely populated area or is it at least in an area where your target customers frequent?

The staff and management, if you are not going to be directly involved in running the business, is another key factor to consider.
People make the business and you need to know whether the business has people with the right skills, experience and attitude.
The above is not exhaustive, but just some of the basics to consider when acquiring a business.
Courtesy of
Chris Sicelo Gama, FSA™. Fingroup Swaziland.

Comments (0 posted):

Post your comment comment

Please enter the code you see in the image:

: Pay cuts suspension
Do you believe that the announcement of pay cuts for politicians was window dressing?