Wanting to run your own business doesn’t necessarily mean you have to start from the beginning. Many would-be entrepreneurs are choosing another route. Buying an existing business is becoming common practice, and there are several reasons why. A business that is already in existence will have its own equipment and inventory. It will have a tried and tested location, possibly with a few years left on the lease. There will be a list of regular customers, many of whom will be happy to stick around. The business will have employees, some of whom you’ll want to keep. With a business that is operational, you’ll get a good idea of the money you’ll be able to make. It will have a track record, and you’ll be able to look at its books, records and tax returns for verification.
If you want to buy a business, as well as benefits, there are also risks. There is no guarantee that the business will continue to run in the same way. In fact, it’s highly likely that the business will change. Something else to bear in mind is whether the business owner is truthful about the business. Performing “due diligence” will be an important part of the decision-making process, and there are certain factors you should consider.
What are You Looking For?
There are many places you can look for a business for sale. However, you first need to decide what you want. Consider the location, size, industry and the lifestyle you can expect to enjoy when you take over. Do you dream of running a successful retail outlet, or do your talents lie in the creative industry, and you see yourself owning a design business? It’s important to know exactly what you want before you begin your search.
Do Your Research
When you’ve decided what you’re looking for, it’s time to do some research. Don’t immediately turn to Google. Ask around locally first and put out feelers. Have you got any friends who might be considering selling their business? Is there a business in the area you’d really like to own? There’s no harm in approaching any kind of business and making them a proposition. What’s the worst thing that can happen?
Ask for Professional Advice
It is possible to use the services of a business broker if you’re struggling to find what you want on your own. Lawbiz, for example, will be able to help if you want to buy a law practice. Such a service provider will be able to help find the right business, provide counsel on various considerations, prepare a memorandum for the purchase and then translate it into a contract of purchase. A business broker will also help you find a company that meets your needs.
Buying an existing business can be expensive. However, funding should be available to help with the purchase. The seller may also be prepared to accept payments over a period of time. Once funding has been secured, it’s time to move on to the sales agreement. It is possible to do this yourself, but your interests will be better protected if you work with an acquisitions attorney. They will ensure you understand the agreement before you sign.
For many people, buying an existing business is the perfect solution. Put in the right amount of energy and enthusiasm and you will make it a success.