Business For Sale & Franchise Search Engine  
My Account
Search Businesses For Sale


to refine your search results use advanced search  
Franchise Opportunities

Sell Your Business, Starting at $20.99 per month
Small Business Resources > Business Buying Tips

Business Buying Tips

It is indeed very advantageous if you can buy an existing business, as a customer base will already be established, business operations will be conducted by experienced employees, and you can concentrate on improving services or products rather than spend time on establishing the business.

Things to Consider While Buying a Business:

� The first thing to consider is the type of business it is, if it is suitable for you, and if you are capable of running it. Consider the legal structure, the working hours, and (most importantly), if it can be purchased within your budget.

� It will be necessary to do some market research as well as a competitive analysis to check the market for the services or products and judge if it will be a viable option.

� Consider the reasons for the sale and ensure that you have a trustworthy attorney to study all documents, ensuring there are no hidden clauses of any kinds or liabilities. Check the liabilities as well as any assets that may be included and determine their exact value. If there are liabilities, will you assume them and can you break even? Seek his help to study the existing lease and to study a new lease if the landlord so desires it. Study factors affecting trademarks and logos, etc.

� Ask for and scrutinize the past few years� income statements and have a cash flow projection done, study the customer base as well as the employees on hand and determine how they will react to the change.

� Identify key suppliers and traders and ask them if they will continue doing business with you and at what terms should you buy the business. Determine if there are any warranties or guarantees for products sold and if there are to be financial allowances to cover that aspect.

� Determine and valuate the business, making sure you are not paying more than you should. Talk with the seller and reach an agreement regarding rate and the mode of payment.

� Determine the capital necessary to begin operations once you assume ownership and arrange for the funds.

� Have your attorney and accountants study the past few years� tax returns and determine if purchasing the business will somehow affect the tax issues.

� Make sure your due diligence is thorough and that all aspects are scrutinized thoroughly before deciding to buy the business.

� Check the list of inventories and make sure that they are not obsolete.

� Check if the equipment and systems are in the condition they are said to be and that they were regularly serviced and maintained.

� Study the business plans carefully to become familiar with the business operations as well as to identify areas where changes may be necessary to improve performance.

These are a few things to be considered while buying a business. Once you buy and start operations, it is recommended that you use the services as well as the products that are in the market to help new entrepreneurs like you become successful.

About the Author
Alexander Gordon is a writer for - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.

Related Resources
Buying a Business
10 Reasons to Buy a Franchise
12 Laws of the Business Buying and Selling Jungle - PART I
12 Laws of the Business Buying and Selling Jungle - PART II
Advantages & Disadvantages of Owning a Franchise
Advantages and Disadvantages of a Start-Up Business
An Overview of Today's Business Opportunity Market
Auto Franchises
Become a Franchise Consultant
Business Brokers
Business Brokers How They Can Help You
Business Buying Tips
Business Lawyer
Businesses for Sale by Owner
Businesses under $10,000
Buy A Business Using This One Simple Skill
Buy A Business With No Money Down?
Buying a Business - How to Buy a Business
Buying a Business Steps
Buying a Business: Using An Outside Inventory Company
Buying A Franchise
Buying a Restaurant - What You Need To Know
Buying the Right Business
Coffee Franchises
Dispelling the Common Myths about SBA Financing
Do Home Based Businesses & Franchises Really Work?
Do What You Love or Love What You Do
Do You Need Bricks and Mortar Anymore?
Financing The Deal
Finding A Business To Buy Tips
Food Franchises
Forget The Asking Price of A Business For Sale
Franchise Alliance
Franchise Information
Franchise Lawyers
Franchise Reviews
Franchises - What To Consider
Free Small Business Magazines
Getting Into Business: Don't Start It! Buy It!!
House Cleaning Franchises
How Do I Obtain Capital To Invest In My Business Start Up
How Much Does a Franchise Cost
How To Buy A Business - Part 1
How To Buy A Business - Part 2
How To Buy A Business At A Great Price CD
How To Buy A Good Business At A Great Price
How to Make More of Your Franchise
How To Value A Business
Hurricanes Affect the Value of Florida Businesses
Little-Known Business-Funding Option Awaits Your Discovery
Low Cost Business Ideas
Negotiating The Price of a Business for Sale
Questions to Ask a Franchisor When Buying a Franchise
Reasons to Use a Franchise Consultant
Restaurant Start-Up Guide - Start Your Own Restaurant
Selling Your Technology Company - Why Earn Outs Make Sense Today
Small Business Loans for Small Business Owners
Starting a Small Business in Less than 24 Hours
Ten Common Mistakes Made by Franchise Buyers
The Advantages of Buying An Existing Business
The Advantages of Unsecured Business Loans when Buying a Business
The Complete Guide to Buying a Business
The Differences Between a Franchise & Business Opportunity
Things To Consider Before Buying A Business: Be Careful
Three Signs Of A Franchise Winner
To Franchise or not to Franchise
What is a Letter of Intent?
What is an E-2 Visa?
What is Cash Flow?
What is Due Diligence?
What is EBITDA?
What is FF&E? - Furniture Fixtures and Equipment
What Is My Business Worth? Learn How Small Businesses Are Priced
What is Seller's Discretionary Cash Flow?
What to Avoid When Starting a Vending Business
What to Investigate Before You Buy a Business
What to Look for When Buying a Business
What to Look for When Buying an Online Business
What to Think About Before Buying a Franchise
When To Start The Due Diligence Process?
Wholesale Distribution Start-Up Guide - Start your own Wholesale Distribution Business
Why Buy an Existing Business?
Why Buy an Existing Business?
Work From Home Scams
©2024 MH Sub I, LLC dba Internet Brands
Broker Membership | Terms Of Use | Financial Disclaimer | Privacy Policy | Cookie Policy | Resources | Franchise Opportunities | Website Traffic Ranking | Sitemap | Careers | Contact Us | Manage Preferences Your Privacy Choices