Buying a Business – The External View
There is a story about Ray Kroc, the founder of McDonalds, who first observed the hamburger restaurant of the McDonald brothers for a few days before stepping in and making an offer. As we know today, the observation was well worth the time as McDonalds is currently one of the world’s most valuable brands and a very profitable worldwide business.
What was true for Kroc and McDonalds back in the days still holds true for today’s sellers and buyers alike. Buyers observing the business they are interested in purchasing can find out a lot of valuable information, such as information about the customer base and whether the business really thrives.
Similarly, business owners can benefit from this practice, too. Taking a look at their own business from the perspective of a potential seller can reveal facts they might not even be aware of, for example, the current status of their customer service and others.
This method is in fact currently employed by many business owners and franchisors checking their customer service or business operations by disguising themselves as a mysterious shopper.
For business owners interested in taking the “external” look, it is recommended to do it well before putting their business up for sale. Doing so will enable them to have enough time fix any potential issues.