Last week I received a call from a prospective purchaser that is looking to buy a business on the Mornington Peninsula, particularly in Rye.
She was looking to buy a Cafe so I sent her to have a look at one that I"m selling in Rye.
She explained to me how she found out who the main competitor would be in Rye.
She stopped random people in the street and pretended to be in the area for the first time and asked them the simple question of "where can I get the best coffee in town". Surprisingly, 4 out of 5 people told her the same Cafe, which was two blocks down from where she was and she had to walk past 3 other cafes to get to it.
As a business broker I found that to be a simple but very effective way to find out who the main player is in the town. In most cases when buying a business, getting to know your competition should be your first step. If you believe your product is better and there is enough demand for the same product there is a high chance you have a winning formula, providing you follow other background checks to the business you are buying, some of them I have written about from my experiences in selling businesses in my last blog.
Should you have any queries regarding buying a business or selling a business I will be more than happy to help you out even if it is just a simple phone conversation and you would like to get my opinion.
