22 June Buying a Business can be easy
You don’t necessarily need to start a business from scratch as it comes with its peculiar hurdles. You can opt for buying an existing business as it has lower risks and what’s more, you take over a business that already generates cash flow and profit. However, you’ve got to tread carefully to get the best deal. Follow these excellent steps!
First Determine the Right Type of Business You Want
Consider your skills, passions, interests and experience and narrow it down to the ideal business that dovetails with what your expertise.
Come Up with Your Budget for Buying A Business
Checking out your liquid assets, your fixed assets, your debt and income will help you have an idea of the business you should opt for.
Search for Your Ideal Businesses That Are Up for Sale
You can use:
- Business-for-sale websites: like BizBuySell.com and FranchiseGator.com
- Newspaper classifieds and industry publications
- Franchise consultants
- Business brokers.
Select A Business That Aligns with Your Budget, Goals, And Resources
Know Why an Existing Business Is Up for Sale
Know as much as possible about the existing business’s successes, challenges, failures and future opportunities, so that you can buy without the bias of the seller trying to convince you.
Conduct A Thorough Business Valuation
In doing this make sure you consider the business’s Tangible assets, Inventory, Goodwill, Revenue, Profit and owner’s salary.
Get All the Business Documents in Check
To avoid any future financial/legal issues, you should get hold of all financial documents, organizational documents, location paperwork, existing contracts, sale agreements and consultation agreements.
Know Your Business Financing Options
Some financing options include:
- Personal or Family Money
- Seller Financing
- Sell Stock to Employees
- Leasing the Business
- Debt Financing etc.
Get Yourself Armed with The Right Team!
They will extensively help you in the safe acquisition of the business you intend to buy. They essentially include an accountant/CPA, business attorneys and business brokers.