When is the best time to do anything in life? The truth is -- IT DEPENDS!!! It depends on many factors and before moving forward with the purchase of a business, it's important that you ask yourself if this is actually the right time for you. Buying a business involves inherent risks and sometimes even small mistakes can be costly.
Are you prepared both personally and financially? Are you in a position where you can focus on taking the measures necessary to minimize the risks involved in the acquisition? Are you in a strong financial position with reserves to cover unanticipated expenses that may arise post-closing? Will you have sufficient time, resources and staff to manage the new business?
What about market conditions? Is it better to buy a business in a strong or weak economy? IT DEPENDS!!! What kind of business is it? There are some businesses that thrive in a poor economy while others barely survive. In a poor economy, auto repair businesses do very well because people have their cars repaired instead of trading them in on new cars. Bankruptcy attorneys and collection agencies have more business than they can handle in a bad economy. When the economy is strong, business may drop off a bit for these folks and they must either diversify or increase their marketing to generate the same volume of revenue.
Financing may also be an important consideration. In a weak economy, there may not be any lender funds available; thus, if you need a loan to make the purchase, you may be out of luck. In a strong economy, the lenders may be throwing money at anyone with a pulse. If that's the case, and you have reasonably good credit, it should be a good time to buy a business.
Opportunities come and go. When the time is right for you to buy a business, the right opportunity will present itself. When is the best time to buy a business? When you are ready, willing and able to do so. Just step up and go for it!