Following these steps can make the business buying process much more efficient and enjoyable.
1. Self Exploration
It is very important to know yourself very well before investing your lifesavings in buying an existing business. You should know your goals and make sure that buying a new business will help you fulfill them. There are three criteria used by large corporation strategists that can help you decide how to go about buying an existing business.
The first question to ask yourself is, "what do you like?" You can only be successful in a business if you like what you do. Make sure that you enjoy the day to day activities of your new business. The second question is, "what do you know?" Your chances of success are much higher if you have knowledge, experience and/or education in the field in which you are considering to invest. Finally, what are the market opportunities? Not all fields offer the same potential for profitability. Some industries are very mature and competitive, while others are more profitable and fast growing.
Unfortunately most business buyers are only concerned with the third criterion. They are looking for businesses that make money, irrespective of whether they would be happy managing these businesses and whether they have (or could quickly acquire) the competencies necessary to succeed. Profitable businesses are in demand and, as a consequence, sell for high prices. You will make a good deal only if you find a business that you can make successful, but that most other people cannot. It is your unique qualities that will make you successful.
2. Determining Your Criteria
Clearly defining the criteria you will use to select your business will help you save a lot of time in your search process. It is important to answer some questions concerning your purchase:
- Why are you buying a business?
- What is most important to you?
- In which industries are you interested ?
- How much income are you expecting?
- Do you have the funds available?
Answering these questions will help you determine the criteria you are looking for in your business.
3. Looking for Business Listings
After you have clearly defined what you are looking for in a business, you will need a list of businesses from which to select. You will find a large selection of our listings. Please contact us for additional information about a business in which you are interested.