Buying a business is a major decision, as it affects not only your career, but also your personal life.
With the decision comes doubts and here are presented some of the most common with their answer.
-How do I find a good business?
First you have to decide what you are looking for (revenue, net income, location, type of business, etc.) and determine how much you have / are willing to invest. This will help you to develop search criteria. A broker may and will help you find the best business for you.
-How can I finance the business acquisition?
Usually, businesses transactions are financed using cash from the buyer, some bank debt, and some form of vendor financing. The exact proportions and source of financing will vary a lot depending on a few things (like the size of the business, amount of physical assets included, how much the business has earned the past few years, etc.)
-Why should I consult with a business broker?
Not only can a professional business broker provide you with a selection of different and unique businesses, including many that you would not be able to find on your own but they are also an excellent source of information about the whole business acquisition process, as they have a lot of experience in the area, not to mention being familiarized with the market being able to understand trends.
Besides, most buyers end up with a business completely different from their first inquiries. Business brokers can offer you a wide variety of businesses to look at and consider.
Your business broker will handle all the details of the sale and will guide you in the right direction, and, if necessary, consult other professionals who may be able to further assist you.
-What should I look for?
It’s advisable to consider buying only a business that you can afford with what you have available. It’s useless to buy a business only to realize that you don’t have enough resources to maintain it, right? In addition the business must be able to offer you enough income to pay your bills. Lastly, when looking for a business to buy, always think about what you can do with it, about how to improve and make it grow, in other words, plan ahead.
-What does it take to be successful?
It’s important to have enough money to buy, maintain and improve the business. But probably the most important (and what most owners forget) is to be willing to work hard, at least in the start. The owner must be a little of everything (specially in small businesses case) and what a lot of buyers expect is to just sit down behind their desks and coordinate the company, not doing what it takes for the company to thrive and grow.
-Do I need a lawyer?
Business brokers are not qualified to give legal advice, but they do know when a lawyer can come in hand. You don’t NEED a lawyer, but they can help a lot. Consult with your broker to know when a lawyer should come into play to review the legal documents. It is important, however, that the lawyer you hire is familiar with the business buying process and has the time available to handle the paperwork on a timely basis. An experienced lawyer can be of real assistance in making sure that all of the details are handled properly.
Of course, these are only some of the most common, there are many more possible questions out there.
If there is any remaining doubt or any questions not mentioned here feel free to ask.