How to Buy a Business

Contrary to what many believe, there are actually two main paths toward becoming a business owner: Start your own or buy an existing one. Both take long hours and hard work. But taking over an existing company from a retiring entrepreneur means you don’t have to start from scratch–and it may pay off better than bootstrapping a startup.

While buying a decades-old widget factory or neighborhood bar may not be as sexy as building the next software empire, existing businesses can be real moneymakers, giving new owners a chance to move in on a proven concept and an already established client base as they make it their own.

If you’re contemplating a move to business ownership and are thinking about buying an existing business, here are a few things you need to know.

Read our tips by accessing the following link or read about the success steps you need to take to buy a business in the articles below.

1. The Perspective of Buying a Business

Usually, when someone is thinking about starting a business, she/he is thinking to start from scratch – developing his own ideas and building the company from zero. But starting from zero has some distinct disadvantages, including the difficulty of building a...

2. How to Buy the Right Business for You

How to Buy the Right Business for You The only way to make sure you’ll be successful with your new business is to be absolutely sure you’ve bought the right one. This is possible if you acquire the knowledge you need for this process. Don’t worry, the vast...

3. Business Brokers – How They can Help You

One of the most frequent questions asked by prospective business buyers is whether or not they should hire a business broker. The response is always: “yes… but.” The “but” is that you should “use” one, not “hire” one. A...

4. Common Mistakes that Must Be Avoided

Some of the most common mistakes are: Acquisition of the business at the seller’s price– The buyer does not consider recovering the investment and starts negotiations on the purchase price without taking into account a normal recovery period. Lack of...

5. How to Value A Business for Sale

Accurately valuing a small business is often the most challenging part of the process for prospective business buyers. However, it doesn’t have to be an overwhelming or difficult undertaking. Above all, you should realize that valuation is an art, not a science....

6. Financing Options

As you move forward with the sale of your business, it’s important to understand how sales are financed and how the proceeds are taxed. Each type of financing has a different approach for funding and paying off small business purchases, and each has its financial...

7. Due Diligence – How To Uncover any Problems BEFORE You Buy

Due diligence is probably the most critical stage in the buying process. Many prospective buyers incorrectly identify this period as strictly a financial review, but it goes far beyond that. Due diligence encompasses a far-greater project  ̶  the complete...

8. Transition time

A new ownership is a big change for small businesses’ employees. To ensure a smooth transition, start the transition process before the sale ends. Make sure the owner is relaxed about what will happen with the business after he or she leaves. Spend some time...

8 steps to buy a business

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