What do You Need to Consider When Starting your Own Business?

At RTA Business we understand that in order to make a profit from selling your business, you first have to actually have a profitable business. This is why it pays to know what you need to consider when starting a business. So what do you need to consider when getting a business off the ground?

For those aren’t sure what an entrepreneur is, it’s a person who sets up a business or businesses at financial risk to themselves. It’s somebody who takes a chance to make a profit. This means that to be successful as an entrepreneur and in starting your own business you have to be in a position to take risks.

If you are in a financially precarious situation and you take a risk that fails your business will have no chance of success. That’s why when you are looking to set up business you have to calculate when is the right time for you. 

You also need to think about your product; is it viable, will it sell, do the costs it takes to produce outweigh the potential profit you can make from it? If your product isn’t viable then your business won’t be lucrative. All entrepreneurial efforts depend on the product they are centred on.

You also need to look ahead. You may have a great idea, but it needs to be sustainable in the long time. Is there room for expansion, how long will it take before it starts making a profit. No matter how innovative your product is, if it isn’t sustainable in the long term your business will fail.

You also have to consider how you are going to market your product. What sort of marketing is it most preferential to, how are you going to fund such marketing attempts. You may have the best product in the world, but if there’s no way to effectively market it then it’s as good as useless to you.

Setting up your own business is one of the toughest choices you can possibly make in your career. However if you are successful the rewards are numerous; when the time is right you can sell it off and make a tidy profit. 

What Should You Consider When You Buy a Business?

With the UK economy in sustained recovery there’s never been better time to expand your business. What better way to expand your business than to buy another? However buying another business can be a complex issue and that’s why there are certain things you consider when you buy a business.

When you buy a business you are looking to expanding your operation, to diversify the service you deliver and make a larger profit. This readiness for expansion often causes people to jump in head first and not consider all the issues involved in business acquisition.

This is why whenever you consider buying a business you should come to a business acquisition facilitator such as RTA Business. We have the expert knowledge and industry experience to ensure that you make the choice that will most benefit your current goals.

However before you even consider buying any business there are certain basic questions that you must ask yourself. They apply core business principles to the situation at hand to ensure that you are making the right decision for you.

First, take the business you are considering buying and ask, does it match up with your philosophy, with your aims? Business works through the dedicated effort to achieve certain goals, if you acquire a business which diverts you in the achievement of said goals, it could weaken your overall efforts for success in your chosen field.

You also have to consider what the new business adds to your current operations. It’s is often a good idea to look at your own weaknesses and see how the new business acts to rectify them. There’s no point expanding if you have glaring weaknesses that would hold you back regardless.

You also have to consider the current issues the new business is facing. No business is perfect; every single one out there will have an issue that affects its operations. Consider the issue and calculate how it will impact your profit margins. Can you survive the issue? You could even turn it into leverage in sales negotiations with the old owner.

It’s also wise to consider the staff the new business currently employs. Every business is only as good as its staff roster, and unless you decide to overhaul said roster (which will cost you in hiring and training) then you have to work with them. Can you work with them?

At RTA Business we understand that buying a business is a complex issue that demands careful consideration and an appraisal of many mitigating factors and circumstances. This is why we strive to ensure you are fully confident by the time you buy a new business. 

Flagship Interest Rate Calculation Policy Sees Adjustment

Current Governor of the Bank of England Mark Carney announced this week that the Bank is making adjustments to its flagship interest rate calculation policy. What could this mean for the industry of business acquisition in the UK?

The consequences of the 2008 financial crash saw the Bank of England announce last August a forward guidance policy that would hold interest rates at their current low of 0.5%. However it tied this to unemployment. The Bank said it would only consider raising interest rates when unemployment fell nationally below 7%.

Industry experts have touted the policy as a success that has helped the country on its way to sustained recovery after the Great Recession. Carney has since noted that his flagship policy had reduced uncertainty in the market which has encouraged industry players to spend and hire.

So there is a direct link to the forward guidance policy. Lower interest rates mean that companies have more cash to spend, which means that they have more to expand, meaning that they can hire more staff. This would lower the rate of unemployment which would then negate the need for the policy, meaning it could be dropped.

However unemployment has dropped quicker than anybody expected; it’s already hovering fairly close to the 7% threshold. This had led many to fear that interest rates would go back up. However it appears that Carney still sees a need for the policy.

Therefore the benchmark to measure when the policy should be lifted has changed. The Bank announced that as well as unemployment rates, many other contributing economic factors would be considered when deciding when to lift the forward guidance on interest rates. They also said that when interest rates are raised, it’ll be gradually.

In a Bank report Carney noted that "forward guidance is working - expected interest rates have remained low even as the economy has recovered strongly,” and that the policy needs to be revisited "as a result of exceptionally strong jobs growth." The report categorically stated that the "Bank rate may need to remain at low levels for some time to come."

RTA Business sees this as positive news for the industry of business acquisition. Low interest rates have meant that business has grown and people are looking to expand now for the first time in years. It’s likely that low interest rates being maintained will encourage more business owners to buy out other businesses in the name of expansion. 

How Can You Use Language to Sell Your Business?

A key part of any strategy used to sell a business is the language said a strategy employs; after all the language tells people what your business is all about. How can you use language to sell your business?

The word’s you use to sell your business can make or break the sale. The right word or turn of phrase in the right place can hook a buyer in. Consequently the wrong word or turn of phrase in the wrong place can convince your buyer that your business is not one they want to purchase.

So what are the language rules you need to follow when crafting a sales pitch to advertise your business to potential buyers? Firstly, be positive; use positive words that highlight your business’ strength and potential for growth. Nobody wants to purchase a business that can’t even get enthused about its own benefits.

Secondly, don’t grandstand. It can seem tempting to write masses on masses to point out every benefit your business can bring. It’s over compensation. Stick to the facts and the arguments, keep paragraphs short, sweet and to the point. 

Also use your language to promote your unique selling point. Your unique selling point is the reason why a buyer will turn to your business over your competitors. Devote the language you use to emphasising said selling point and divert language away from the trivial details that detract from this lynchpin of your sales pitch.

It’s also important to make sure that the structure of the language you use flows. An argument is effective because the paragraph builds on the point that was made in the paragraph before. Persuasive language works because it’s acts in tandem; don’t suddenly go off topic, it’ll confuse the reader.

Finally, get the specifics right. Whilst persuasive language accentuates a sales pitch, it’s the facts and industry specific language that really sell your business. If you make a mistake in this pivotal area, it casts doubt on your expert knowledge of your particular field. This reflects badly on your business; after all if you get things wrong about the industry in question then logically the business you run will as well.

At RTA Business we understand that crafting a sales pitch to sell your business is a balancing act. This is why it matters what words you use and how you use them; it really can make all the difference.