It’d seem like an excellent idea to go out and try purchasing an agency that is in your community. Nevertheless when you see an agency opportunity, you have to ask yourself one or two questions. Are you sure you actually want to do something that will take up almost all of your spare time? Can you actually run an agency without any kind of warm up period? How will your family feel about it? Besides those questions, you’ve got to question why the agency is up for sale in the first place. Are you good enough to turn around a dying venture?
Taking on an organization that might have been sinking is more frightening that starting up something new? Though not all folks sell because of failure, there are a few that do. Purchasing an agency that has not done well will be something that takes a large amount of forethought, and plenty of tough work. The reasons why the agency could be failing would possibly not be things that can be turned around without absolutely overhauling the entire affair, which for the general public, would be a big investment.
Prior to speaking to any person about buying an agency, you must talk to those in your life. Ask them how they feel and see what they have to say to you. You don’t have to go by what they are saying, but they may point out some things that you will not have thought of on your own. Perhaps you aren’t the people person you believed you were, or maybe you could be putting your family in peril at a bad time by quitting your job to go about buying an agency. There are good times to go into something like that, and there are other occasions when it is just not a good idea.
If you suspect it is alright to proceed, you need to speak to the current owners about buying an agency before talking to anybody at the bank about financing. Learn why they are selling and what the numbers look like. They might be selling because they would like to retire and have nobody in the family that wants to take over, or they’d just want to get out even though business is good. You will not know until you ask. If it is a failing agency, you are going to have to do lots more work when purchasing a business than you probably anticipated.