Despite a challenging global economic environment, the New Zealand economy has been performing well with the New Zealand Institute of Economic Research issuing predictions that the modest growth will continue in 2009 and early 2010, with accelerated growth being experienced in the latter half of 2010 and 2011. Recent press releases by the OECD indicated that boosting productivity growth is essential for closing the substantial income gap with other OECD countries. In its recommendations, it stated that a key policy initiative should be to create a more productive environment for businesses and industry which stimulates growth and creates employment with fewer tax penalties and increased investment and work incentives.
With the economy showing visible signs of recovery and future prosperity predicted, there has never been a better time to establish a business or look at businesses for sale in New Zealand. Questions arise as to whether or not a business should be bought or started from scratch. However, there are some key rationales why the purchase of an established business should be considered.
Firstly, due to the high rate of failure of new business ventures, an existing business that has a proven track record of performance, with an already established market, presents a more secure investment. Secondly, financial records will be available indicating the health of the business, its profit margins and the expected income it will provide. Thirdly, any technical knowledge or processes that may have to be learned to run the business may be gifted in the form of training from the existing owner. Additionally, if the business requires business for sale funding to create future growth in the delivery of product and service provision, an established business with a track record showing its commercial ability to repay negative equity amounts. It is therefore a good idea to check out established businesses for sale in New Zealand first, before considering new start up.
There are many issues that must be taken into consideration when perusing the business market in New Zealand, with accurate information on the businesses performance being essential. To be sure that you are making a correct decision, information needs to be gathered on the price, its location and whether that location is in synergy with the designated market and target customers, the costs of the rent, employment costs and proposed income.
When purchasing a home, many purchasers utilise the services of an established real estate agent. It is even more important that the correct decisions are made when purchasing a business in New Zealand. A qualified agent specialising in business brokerage will be able to identify opportunities in the market that pertain to your demands, requirements, skills and experience. Specific legislative requirements that apply to the industry that you are considering will be made apparent by the agent, with any pitfalls or large delays being avoided.
Additionally, many business owners who are contemplating the sale of their enterprise are likely to list with a trusted agent who can act as an intermediary between buyers and sellers. For this reason, many great business opportunities are not freely available on the market and through the utilisation of a business broker, businesses that are not able to be found locally or online, may be brought to your attention through the networks and relationships that the agent has established and nurtured with the community.