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There are many tips for business buyers on buying a business. Most business publications have articles that serve as guides so a buyer avoids making costly mistakes. These articles dwell on the various stages or phases when buying a business – making the correct valuation of the business for sale, knowing why the business is being sold, getting information from the seller about the business, reviewing the financial and work records, doing due diligence, seeking legal and financial advice, etc.

Only a few articles touch on the personal or social “fit” a buyer should have with the prospective business. It is not always all about profitability. One big mistake made by buyers is not having the personality and skills to create a harmonious and effective work environment with his or her employees, suppliers and customers. Below are some pointers in avoiding this mistake:

• Select the type of business or industry that plays to your interests, strengths and knowledge. You, the soon-to-be entrepreneur should choose a business that suits your skills and personality, one where you have some experience in – be it in the work you have done in the past, classes you have taken, or special skills you have developed through a hobby. You will struggle more to learn the ropes after you buy a business if you have no knowledge of the industry.  Your employees might not take orders from you if they know or sense this. It may be a mistake to buy a business you know little about – no matter how profitable it is, you may run it to the ground in a few months.

· Know the employees or staff of the business, particularly their work responsibilities. Analyze their respective roles in the company. Know how each department of the company works. The current employees know the internal workings of the company. It will be costly to hire and train new staff.

• Get your hands dirty.  Spend time acquainting yourself and actually doing work. Get out of the office and into the work place.

• It will be less strenuous if you get into a business or industry close to your heart and skills.  Working will be fun and success will follow. 

• Maintain a good relationship with staff and suppliers. Employees could be demoralized because of the change in ownership. There is a chance the staff may leave, and suppliers may not want to do business with you after the deal has gone through.

• Think carefully about the duties and roles you will perform. Dealing with the staff, negotiating with suppliers and working on your customer service skills will be your daily reality.  Can you relate and interact effectively with them?  Do you have good people skills?

• Make sure you can command the respect of all stakeholders. Being knowledgeable about the business will help in discussions with the employees, clients and suppliers.

• Take into consideration the company culture – how the company is currently run.  Know who among the employees has the “influence”, or power (not necessarily because of this person’s title in the organizational chart) to sway other employees to act.

• Be there – participate in the daily operations of the business.

Be prepared when buying a business.  In these tough economic times, getting into the wrong business is costly.  Do not make hasty decisions.  Study the business for sale.  Will your personality fit into the new lifestyle and livelihood?  Will you work well with the staff, clients and suppliers?