Your Business – Protecting Your Assets Pt 2

This post was written by Tony-Online on March 9, 2010
Posted Under: Uncategorized

Let’s assume that you find an existing business for sale that meets your needs. If you don’t have it’s financial status thoroughly examined by a certified third party, such as an audit firm that has some experience in this area, you could very well find yourself on the losing end of a lawsuit that could result in you losing everything you owned before buying the business.

No, I am not trying to discourage you in any way. I only want you to realize that doing a little work up front can save you a great deal of grief later. As the adage goes;
“An ounce of prevention is worth a pound of cure.”

At worst, you’ll learn some valuable lessons for a minimal cost and you might find that the business you’re considering is even more valuable than you originally believed.

You can also consider modeling your own business, basing what you do on an existing business. In other words, copying what you see as successful techniques the business is using in its operation. This is one way of avoiding the possibility of assuming responsibility for any liabilities a business you consider buying may have incurred.

I am not advocating that you rush around copying every successful thing you believe a competitor is doing. That would not be ethical and, consider, your reputation is like gold – you want to do everything possible to assure the strength of your reputation and your integrity. Also, unless you are a customer of a business, you’ll never see all of the marketing techniques that the business is using to appeal to their customers.

But I’m getting off track here. The main point I want to emphasize is that taking on any new or existing business where you are the sole proprietor, or any new or existing business where you are going into a partnership with another party requires that you know what you are getting into. It requires that you realize you are putting everything you own at risk in the event anything goes wrong.

Don’t let this scare you off but be aware that this is your reality and take whatever steps are necessary to protect yourself and your assets at the outset of your business adventure.

To be continued.

An original blog written by Tony Neilson and published at March 09/10

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