After you've just sold a business it can feel like you suddenly have a fortune burning a hole in your pocket. Here are some tips to help the search for your new business go smoothly.
Take some time
While it can seem vital to buy something soon so that you aren't burning through capital on your living expenses, it makes sense to take as much time as you would have taken the first time in finding the right business.
Think about the aspects of your business that you have enjoyed (perhaps being able to run strategy, or dealing directly with your customers) and the aspects you didn't find as rewarding (perhaps dealing with suppliers or staff management). Once you know what kind of business facet you enjoy most you can use this to refine your search for the new business.
Consider your lifestyle
Now that you have worked as a small business owner you have an accurate idea of the time pressures running a small business entails. However if it's been a while since you bought your first business it may be time to go and reconsider your priorities. Perhaps now you have children, or older children, and now are looking to work in a different set up than you may have originally anticipated. Do you want a family business, in which case how can you involve the whole family, or simply a money earner to support your family through this time?
Contemplate your budget
If the sale of your business has left your with a tidy payout it may seem like you should shop with that budget, however this is not always the case. It can make sense to pay down personal debt and set up investments outside of the business as well.
You should continue to search for a business based on a model you understand, earnings that look healthy and improvable and good business fundamentals. This may be a much lower number but reserving some money in liquid funds can give you the opportunity to run multiple businesses or invest more in expanding your business into profitable extra income streams.
Business brokers can help you refine your search for the ideal business to buy next, and help you search for that business. They often see businesses before they are formally listed so are a great resource in find you your next goldmine. Don't delay in making an appointment.