Not every great business looks perfect on paper.

If you’re in the market to buy a business, don’t make the mistake of judging it purely on current profit. Some of the best opportunities are hidden in businesses that are underperforming—but come with powerful foundations. With the right strategy, these hidden gems can become your most valuable investments.

Here’s how to spot the real potential in a business, even if the numbers don’t initially shine.

1. Evaluate the Assets and Setup

Even if the business is making a loss, the physical infrastructure may be worth far more than the asking price. Fit-outs, machinery, POS systems, refrigeration, commercial kitchens, IT setups, and vehicles can cost tens—or hundreds—of thousands to replicate.

Ask yourself:

What would it cost to build this business from scratch?
How long would it take to source, install, and set everything up?
Could I walk in and start trading tomorrow?

Tip: When you’re looking to buy a business, sometimes the value is in the groundwork already done—not just the revenue it’s currently generating.

2. Consider the Customer Base

A loyal, active customer list is gold. Even if the business isn’t currently profitable, a solid database of past or repeat customers gives you a powerful launchpad for future marketing and growth.

Look for:

CRM or mailing list with active contacts
Repeat business from key clients
Industry relationships or referral partners

Tip: Building customer trust takes time. If that trust already exists, you’re steps ahead before even opening the doors.

3. Review the Online Presence and Reputation

An established digital footprint is a massive time-saver and credibility booster. A well-ranking website, positive Google reviews, social media presence, and established directory listings all reduce the time and money you’ll need to spend on marketing.

Ask:

Does the business have positive reviews and local recognition?
Is the website professionally built and optimised for search?
Are social media accounts active and followed?

Tip: In today’s market, a strong online presence can be more valuable than foot traffic. Business brokers often list these assets as key value drivers in modern business sales.

4. Assess the Team and Skill Set

A business might be running at a loss due to poor management, not bad staff. If there’s a team in place with skills, experience, and industry knowledge, that’s a serious advantage.

Look for:

Key staff willing to stay on
Employees who manage day-to-day operations
Trained team members with customer relationships

Tip: Replacing skilled workers is expensive and time-consuming. Keeping the right team can give you operational stability from day one.

5. Identify the Reasons for the Underperformance

Sometimes the business isn’t failing—it’s just being neglected. The owner may be burnt out, distracted, or lacking the digital know-how to compete in today’s environment. Other times, one small strategic change—like pricing, product mix, or location tweaks—can turn things around.

Tip: Ask business brokers why the seller is exiting. If the reason is personal (retirement, health, relocation), the underperformance may have little to do with the business’s true potential.

6. Spot the Growth Levers

Even in a loss-making business, potential lies in:

Untapped marketing channels (Google Ads, social media)
Product or service expansions
Online ordering, eCommerce, or delivery integration
Local partnerships or wholesale opportunities

Tip: Can you bring something the current owner couldn’t—tech, energy, strategy, capital, or time?

Final Thought

When you’re ready to buy a business, don’t just look at the P&L—look at the platform. Some of the most profitable ventures start as turnarounds, and the best buyers know how to recognise underutilised assets.

If you want help finding value others might overlook, speak with a professional Bonza Business Broker. Their insight into business sales trends, buyer demand, and hidden potential can help you secure a smarter deal.

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How to Spot a Business With Real Potential (Even if the Numbers Don’t Look Great)