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Buying a Business
Your looking for a business opportunity but don't want to start from scratch, well there are thousands of businesses
for sale across the country. These businesses include restaurants, gas stations, hotels, antiques, cash washes, and
almost any kind of business you can imagine.
If you have already decide that you want to own your own business, the first goal would be to identify what type of
business you would like to own or consider what type of businesses are available in your area. This can be accomplished
by searching our database of businesses for sale.
Once you have found a business for sale that interests you, that is when the work begins. We recommend you get a
professional business valuation and work with a business broker. There are a lot of details in buying a business so
you want to make sure that nothing gets overlooked.
Important items that you need to be aware before buying an established business include accounts receivables, inventory,
real estate value, machines / equipment, mortgage / liens, income statement, financial ratio, leases, personnel, taxes,
legal fees, insurance, competition, web site and there is more. Whether you have bought and sold many businesses or this
is your first time, we recommend hiring a business broker to work with you.
As you begin to work with the financial numbers and determine fair value, it is also important to determine why is the
business being sold? Reasons for selling a business may include moving, a death in the family or medical emergency,
leaving to start a new business or take a job, bankruptcy or just retirement. Whatever the reason, you should investigate
and see if there is opportunity to do more business or if this business is a dud.
Buying Business - Items to Consider:
- How long has the current business been open? The longer the better
- Is the site one where many businesses failed? Don't buy a poor location
- Are there new competitors in or coming into your marketplace?
- Are there new roads or community projects that will benefit your business?
- Is there strong demand for this business?
- Is there the ability to grow and improve the business?
It is important to know that factors outside of your control can impact your success. Road construction, a new shopping
center, a new planned community or the closing of a plant or neighboring store can all impact your success, so be sure to
talk to the people in your community and make sure that you are able to plan for success.
The key is be informed, work with a professional, buy if it meets your requirements, and walk away if it does not.
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