3 Areas to Focus While Buying Businesses in Bangalore

Bangalore has become the startup capital of India with thousands of young people working on ideas to build an innovative services company
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

  • |
  • Jul 15,2021
  • |
  • 14 Mins Read

Business ecosystem in Bangalore is the biggest in India and no place can match, due to which Bangalore is often called the Silicon Valley of India. The growth of industry has been very late for a city of this size. However when it got started, it never really stopped. As Silicon Valley grows, Indian entrepreneurs and some American expatriates have begun to launch their startup in Bangalore. Bangalore has an enormous concentration of IT talent, making it easier for companies to hire developers, marketers, and other employees there than elsewhere in India.

Bangalore is no longer just a city of call centres and BPOs. Bangalore has become the startup capital of India with thousands of young people working on ideas to build an innovative services company in multiple sectors—gigabytes, hotel, tourism, education, training, real estate and many others. India's newest city Bangalore, tech hub of India, has such a young ecosystem that one can't find historical analogues to compare equity rounds and valuations with. It is also so unorganized that there are several different players promoting themselves as the representatives of startups, without any independent validation of their claims.

Many factors contribute to the phenomenal growth of business in Bangalore. The cost of living here, which is not high, enjoys a comfortable living when the salary is INR 10,000 a month, 20 per cent above the national average. Also, many government offices have their headquarters here and also there are several software and information technology firms. Therefore, invest in Businesses for sale in Bangalore. 

Small businesses are the engine of the Indian economy. Roughly 99.9 per cent of all registered firms in India and dozens of millions of Indians are engaged in small business. Yet, their importance gets little attention or respect from our policy makers and analysts.

It is believed that the city of Bangalore, in south-eastern India, is the home to 75 per cent of India's IT industry. The presence of a large number of small and medium size businesses has made this bustling capital city what it is today. Here are some important things to keep in mind while buying business in Bangalore

Background Check 

When you are thinking about buying a business, you need to do some research, especially background checks. You want to know who the owners are and what they have done with the business before. You want to know if this is a good business opportunity or just another lemon that should be avoided.

Background checks on business sellers are essential, even when there doesn't seem to be a very good reason for thinking the seller is dishonest or incompetent.

Financial Report 

Being a business owner you have to work with the financial reports of your own. Studying these documents is a good idea, and here is why: first, learning from other people's mistakes is always cheaper than from your own mistakes; second, when studying financial documents you have a better chance to beat your competitors. If you are a future business owner, you should definitely master math, economics and finance in this case.

Reputation 

Buying a business instead of starting one from scratch is a risk. There's no guarantee that you'll find a profitable niche that meets your needs and gets your employees excited about the future. It's even possible to buy a huge name and then find out everyone has a bad impression of the company and it's not hiring anyone.

Businesses typically have a shadow value, a reputation in the market which is not accurately reflected by their financials. The same business might have a value of 100 million dollars one year, then a sale price of 80 million dollars the next when it is sold. Since this ignores changes in supply and demand for that business's products, it's natural to be suspect of these fluctuations. 

These factors should be considered while buying businesses. Besides this, there are a slew of other vital areas that should be determined before making bets on business for sale in Bengaluru

Please add your Comment

More from Jaspreet Kaur

Get Industry First Insights

Sign up for our exclusive Newsletter

  • Follow BusinessEx
Stay tuned & get updated

Our Group Companies