Your Cheat Sheet for Buying a Business
When buying a business, you are buying its future based on its past performance. Your decision to purchase a business for sale will affect your life style and finances. A cheat sheet can minimize your risks and uncertainties.
1. Which business opportunity matches your knowledge, experience and passion? Is the business for sale profitable? Is there room for growth? Consider products or services that generate sales and attract repeat customers. What are the recurring expenses associated with running the business? Can you lower costs to increase your profit margin? How is the business compared to the competition?
2. How much does the business cost? How much of this can you raise on your own? What are your borrowing requirements? Choose a company with a healthy cash flow so you will not be in debt for long. Only borrow the amount that you can afford to pay.
3. Investigate the business for sale. Make sure there are no problems in the transfer of existing contracts with suppliers, landlord, etc. to you.
4. Study how you will structure your company. Will you invite partners or go solo?
5. How much time will you spend in running the business? Do you know enough about this business to run it? How will your family life be affected?
Coming up with a firm business plan will ensure that you follow the path to your financial goals. Do not lose focus on your objectives. Hopefully you find this business cheat sheet is helpful. Did you have any questions?
