Startups are very tough ventures because one needs to select a good location, carry out various construction tasks, market it, and a whole host of other activities. These reasons and other make it worthwhile to buy a business that is already running. Though this is the case, you cannot just pay spot cash for any small business that has been put up for sale. It is only after giving a thought to the following 7 factors that you may buy that small business.
A business that is bought from an elderly person is bound to succeed more than one purchased from a young person. The reason being the fact that their decisions are motivated by their desire to retire. Similar data about this are disclosed at http://www.encyclopedia.com/topic/Small_business.aspx. In contrast, the youthful lot usually sell because their ventures are no longer viable.
Make sure the seller gives you a breakdown of how the selling price was arrived at. It is from this information that you will determine your bargaining power. If there is a structured breakdown in place; you may have little to bargain about. You may, however, have plenty of room to bargain if the price has been arrived at randomly.
Even with thorough investigations, there are things you will never know about a Carolina Biz on sale. It is prudent to assume that there is a skeleton in the closet so that you can tread carefully. While there may or may not be one, just ensure you are ready to handle whatever comes your way. This situation is best dealt with by reserving some cash to deal with such issues.
Get professional advice from a tax professional, business consultant or accountant before you seal the deal with the seller. Their advice is invaluable as they have an eye for critical details that you may have overlooked. They will also help you value the assets professionally, offer marketing tips, and guide you on how to reduce tax liability.
The best business to buy from this website are those that are operated by several people as opposed to a single individual. Many small businesses, especially professional practices are run by individuals. The reason for this is that you may lose customers who may later on learn of the ownership change, unless there is an effective succession plan in place. Make arrangements with the current owners to remain visible to such customers for some time, which will also give them the chance to get to know you.
Inquire into the presence of past, present or future lawsuits. This step will ensure that you do not take over a business that is riddled with legal issues. A written confirmation from the seller is, therefore, critical in this respect.
Speak to a few current and past customers of the business. Failure to do so may work to your disadvantage. Customers are excellent sources of information about the profitability and operations of the specific firm. It is also advisable to avoid a small business that depend on a single client for profits and survival because your operations could cease if you lose that customer due to one reason or the other.