Here is an unusual opportunity t0 buy a business for next to nothing… I was just reading the Financial Review and the front page news is that the Australian Taxation Office (ATO) are having a big go at small businesses who are behind on their taxes. Now usually as business owners we cringe at these kind of stories, but this is creating a lot of opportunities in the market to buy a business that is underperforming, or preferably take over a business for nothing.
The Tax Department have been a bit lenient over the last couple of years because of the Global Financial Crisis, they have been providing tax relief in the form of interest-free payment plans and special tax breaks, but now they’re on the hunt to recover their overdue accounts and they’re handing out “director penalty notices” like candy.
What does that mean? Well, the companies that are issued with these notices have one of three options – pay up, appoint an administrator or wind up the company.
Faced with the imminent threat of personal liability, there are going to be a lot of business owners out there who know the penalty notice is on it’s way, and they need a fast exit strategy.
Now is the time to network with accountants and lawyers, and keep your eye on the business for sale sections – there are going to be some interesting opportunities on the market right now for those who want to buy a business.
Watch out though! -Your “Buying A Business Checklist”
You must remember that just because you may be able to acquire a business that is cheap or free, it is not necessarily a bargain nor necessarily a profitable business idea.
You’re on the lookout for good businessses with great potential that have got into financial trouble due to typical small business management mistakes. You’re not looking for crappy businesses that are going out backwards because there is no market for their products.
Make sure you use our 5 Golden Rules for buying a business checklist, and The Deal Profiler to make sure you don’t make the same small business management mistakes as they did! This will help ensure you minimise your risk if you use this unusual opportunity to buy a business.