1. money & finance 19
– B R A D G O L C H I N –
s t e p s t o f i n a n c i a l
f r e e d o m w h e n
b u y i n g a b u s i n e s s

2. S o m e S t r a i g h t Ta l k i
F r e e d o m A n d B e c o m i n
C o n s i d e r T h e s e
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1. WORK OUT WHAT YOU
REALLY WANT TO ACHIEVE
FROM THE BUSINESS
Make a list of the things you are hoping to achieve out of this
business purchase. If this list includes wanting to go to the
market with a great product or you have an idea of building the
business up with a service that no one else has thought of and if
financial freedom comes a bit further down the list; then go for
it. You clearly have the passion and the commitment to make
something really work and with the right advice - it probably will.
2. IF ‘FINANCIAL FREEDOM’ IS
THE FIRST THING ON YOUR LIST
- MAKE SURE YOU ARE READY
FOR THE ‘HARD YARDS’
Deciding to buy a business is not just a decision you make – it’s a
‘whole family’ decision. You have to imagine how you are going
to divide your time because it’s 24 hours a day, particularly when
you are starting out and if your family life and your business
life start to collide, financial freedom may not only be hard to
get – it may do too much damage along the way. Look on the
bright side though - your whole family may love the idea and
throw themselves into it with gusto and a great success can be
achieved.
3. DETERMINE IF THE BUSINESS
ON OFFER CAN AFFORD
FOR YOU TO BUY IT?
What does that mean? It means that unless you are going to use
all your savings, you have to make sure that the numbers add up
to cover a business loan. Would you know where to look to find
this out?
Just remember CASH, BALANCE & PROFIT – i.e. Cash flow,
Balance Sheet and Profit & Loss Reports – these will show you
how the business for sale is standing up and being counted.
If you can’t work out what’s good and what’s not in these reports
– that’s where your accountant comes in with their ability to look
at the numbers and interpret the financial health of a business.
Cash flow – just as its name implies– it tells you how, when (and
if) the money comes in and out of the business.
– M O N E Y & F I N A N C E –
Have you ever thought about buying a business? For some
this can be the best move they have ever made, but for
others the dream doesn’t quite pan out. It’s awesome to have
an exciting idea, dream, or passion, whether that’s being
your own boss and doing something you love, or striving to
achieve financial freedom and a great lifestyle for you and
your family… it’s important though that you don’t let your
excitement and enthusiasm cloud your judgement. Here are
some things to consider to make sure you weigh up all of the
pros and cons before embarking on a business adventure.

3. n g A b o u t F i n a n c i a l
g A B u s i n e s s O w n e r -
7 T h i n g s F i r s t .
A B O U T B R A D G O L C H I N
W W W. W I S E A D V I C E . C O . N Z
Brad Golchin CPA, Director of Wise Advice
believes that building strong relationships
with his clients is the key to offering an
unrivalled service. That’s what sets him apart
from other accountants, he looks beyond the
numbers – only by understanding his clients’
aims and objectives can he deliver the
highest level of individual client care.
Brad’s company, Wise Advice, reflects its
Director – easy, welcoming and with services
designed to take the hassle out of accounting
for both investment property and small
business clients, by finding easy ways for
them to take control of their own accounts.
Brad makes use of Xero; and a range of other
great systems. Brad is always looking for new
ideas in technology to make his client’s lives
even easier.
Brad is a Certified Practising Accountant
(CPA) with an extensive background in
Accounting, Business, Training and IT.
He is well known in the industry for his
entrepreneurial vision and ability to integrate
technology and business to improve his and
his clients business practices and is a sought
after presenter and speaker.
21
Balance Sheet – is a summary of the balances of the various
accounts for a business – so you know what is there in the way of
money and can tell if it’s doing well.
Profit & Loss Statement– sometimes called Income and Expenditure
and as the name implies, it lists the income and then the expenses
and shows you the difference between the two = the financial
performance of the business.
4. CHOOSE WHETHER OR NOT
TO WALK AWAY IF THE
NUMBERS AREN’T THAT GREAT
If the accounts are not in as good a shape as you had hoped do
you walk away Or do you look closer at the business and work out
where you could change the current operation model and generate
profit. It may be that by streamlining some of the processes with
new technology you can see that cost savings can be made and if
the basic product/service is something you feel passionate about,
you can make an offer based on the so/so financial reports and use
the basic structure to build financial success. Again a job for you
and your accountant.
5. BUY TO SELL
What? You haven’t even bought it yet... but have you thought
about setting out to buy this business with the idea to build it up
for sale? Remember there are currently no taxes on the capital
gains if you do.
If you keep in mind when you buy a business when you want to
sell it – that is a highly potent tool for setting up the right systems
and technology to turn your set-up into a really great prospect
for a potential buyer – there is a real incentive to do things right
– marketing, website, accounting processes - if you think about
presenting something for sale, even before you start. Financial
freedom could be closer than you think.
6. CONSIDER A FRANCHISE
Have you thought about a franchise? The big thing with franchises
is that you need to be the right fit to get the financial freedom that
you are seeking – franchises have a lower failure rate than other
businesses – and have the infrastructure to get you up and running
immediately – the same applies with the figures though – you
need to do the Cash, Balance, Profit exercise to make sure that
financial freedom is a probable outcome. One thing to think about
is if you’re prepared to accept someone else’s model rather than
building your own – franchises can be a great success, but again the
work/life balance has to be as you want it.
7. HAVE ANOTHER LOOK
AT THAT LIST….
If everything adds up and buying the business is feeling right and
you can visualize the next few years and set yourself some real
financial goals and
make the changes
you need to get this
business up and
running – right product,
right web site, right
technology, right
attitude, right work/
family balance… then
you can look forward
to achieving financial
freedom.