Buy a Money Machine!
What are you getting when you purchase a business? Have you really thought about it? Most haven’t thought accurately about the decision.
What you want is a money machine. You want a business that you can just turn the crank and money comes flying out.
That means you are buying a system. Actually you are buying a set of interrelated systems. Accounting, marketing, and production are examples of systems that are interrelated to make a profit for the owners.
A business can be profitable without systems in place. However, if you don’t have written systems in place, how do you know what to do?
I looked at a manual yesterday for a business. It started with how to open the shop. Steps were given for opening the door, turning on the heat, starting the computers, etc.
The manual had screen shots for how to perform each step of keeping the books. It was wonderful. More needs to be done, but it is a great start.
Imagine buying the business without the manual. Sure you have the key and could unlock the door. You could find the computer. Would you know the passwords? Would you know what programs to open? Would you be able to track sales, orders, and production? Probably not.
Having systems in place is one of the most important factors in establishing value of a business. You want to buy a money machine.