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Information For Buyers
BUYING
A BUSINESS
Buying a business
can be a complicated procedure. Throughout the buying process, it's
important to keep an open mind while searching for a business that
will fit your needs, talents, skills and lifestyle. A business
broker has many different types of businesses for you to consider;
however, you need to remember that there is no such thing as that
"perfect" business. An important thing to keep in mind is
that at some point you must be able to make the move that separates
you from being a "looker" to a "doer." This
isn't easy, but it must happen if you are ever going to be in
business for yourself.
There
are 3 components of a successful business:
- Location
- Product
- Management
An
Ongoing Business provides two necessary components of success:
- A
proven location
- The
right product
= Positive cash flow.
You provide the
Third Ingredient:
- Management
As you begin your search for a
business, keeps in mind that running your own business is more than
a job; it is a lifestyle change. It is a very big lifestyle change.
Most likely, you will be working longer hours; you will be making
all of the decisions. In other words, you will be doing all of the
work from running the business to, in may cases, sweeping the floor
and changing the light bulbs.
What
To Look For:
- How
long the business has been in business.
- How
long the present owner has owned the business.
- Why
the present owner is selling.
- Why
Books and Records are important.
How
to determine if the seller is reporting all income.
Being in business for yourself can be a scary prospect. There are no
guarantees. However, after making this move, almost all business
owners will tell you that they would never go back to being an
employee.
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