If you are thinking of buying into the service industry then you might like to know that the the most common category of business for sale we have at present is that of “service industry”. This categorisation covers a very wide span of different business types and locations from Health and Beauty in Cyprus to Electrical Contractor a bit closer to home.
Investing in a service business means investing in the most common type of business in the UK and Europe. This is what is known these days as a post industrial world and so service is the thing. However, many ‘service’ businesses have a strong industrial, or construction foundation such as Maintenance Contractors or Kitchen Installers or even French Polishing and Furniture restoration. ‘Service’ does not mean not getting your hands dirty.
It must be borne in mind that the word ‘service’ really is key when investing in the service industry. Whether the business is industrial, or construction based, or even as remote as businesses selling doors, or travel on the internet, good service is vital to the success of the business.
The question therefore arises when considering an investment in this industry is whether the present service levels can be maintained when the current business owner lets go of the reigns, or perhaps there is room for improvement when he or she is out of the way. Well it is certainly important that there is no decline of service levels during a handover and there is always room for improvement in even the best of businesses.
To ensure good continuity of service planning is unsurprisingly vital, but when planning for the unexpected it is sometimes difficult to know in advance where the pitfalls will really crop up. As Donald Rumsfeld once famously said “There are known unknowns … but there are also unknown unknowns”; the trick is to plan for the unknown unknowns.
Fortunately here at A2Z Business Brokers, we have a wealth of experience on business handovers and a long list of ‘known unknowns’ which our clients would regard as ‘unknown unknowns’. In English, that means we can help both business buyers and business sellers effectively plan for the unexpected.
One thing that is very much expected is hard work from someone on the buying end of the bargain. A business handover is a dangerous time, especially when dealing with customer service. It is vital to hit the ground running to stop employees jumping ship, suppliers adjusting credit ratings and customers seeking alternative provision – just in case. A clear signal needs to be sent to all involved that if anything has changed it is for the better. Hanging a sign over the door saying “Under New Management” in only a positive message when everyone knows the previous encumbent was absolute rubbish – in all other instances it’s a bit scary.
The service industry is a good investment, especially if you like and understand people and wish to make money by making people happy. Manufacturers may make people happy, but they never get the direct satisfaction (and thanks) that comes from delivering a direct service.
We have a wide choice of service based businesses available, this is a good place to start to choose your next service industry investment.