The Five People You Need on Your Team if You're Buying a Business

1. Lawyer – Yes, they’re expensive, but you’re putting a lot on the line. They are extremely risk averse but essential to have in your corner while you have your rose-tinted glasses on! Oh, and top tip.... Don’t ignore them with your she’ll be right attitude! 

2. Accountant – You need to make sure the numbers work! And it starts with the Sale & Purchase contract. The split between stock, assets and goodwill (what you're actually paying the business) has a huge effect on your taxes going forward. This is a serious negotiating point! 

3. Human Resource Specialist (HR) - If you’re becoming an employer for the first time, this needs to be done right, from the beginning. You’re potentially going from a co-worker to the Boss! This isn't an easy transition, so those employment contracts need to be super clear and relying on the “free” online version just doesn't cut it. 

4. Mortgage/Lending Advisor – Borrowing money to buy a business is a massive decision that affects your personal wealth position as well as your business cash flow. Using an independent mortgage advisor will help you get the best terms and interest rates available to you. Don’t go straight to one lender without looking at other options. This can be time consuming, but in most cases a mortgage advisor can do the heavy lifting for you for free.  

5. Business Finance Coach – Having a professional by your side during the first few months is invaluable. There’s a lot going on, and you’ve potentially not managed business finances before. Don’t rely on the vendor to steer you through this. You need an independent person to help set up systems like Xero, eftpos, bank accounts, company formation, budgets, and cash flow. 

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