Not knowing how to buy a business that is right for you could wipe you out financially. You are investing both money and time into a new business venture. Don’t waste either. I’ve seen too many people that get an idea or stumble across an opportunity that can’t wait to get started. Those people fail more times than they succeed. You need to follow a process that’s proven to work.
How do I buy a business that’s right for me?
First and most important in considering how to buy a business is to develop a great business idea, find your value proposition or your unique selling proposition, and determine whether it is a fit for you personally.
The second step in how to buy a business involves a careful search for businesses for sale that fit your idea. Hopefully your search will turn up multiple opportunities to buy a business. It’s always important to have more than one option. When you quickly accept that one option, you soon feel it is something you must pursue which often leads to poor decision making.
Evaluating the business opportunity.
When deciding how to buy a business right for you, you must evaluate each opportunity carefully. It must fit with your business idea and your value proposition. If it doesn’t, it’s not likely the right opportunity for you. Again, it’s best not to have only one option to evaluate. When there is only one option you’ll feel you must press on and will likely buy the wrong business or overpay for it.
If the business for sale is a fit, you still need to do a small business evaluation. Is this a quality business that will give you the best opportunity for success? There are many questions to answer when considering whether to buy a business.
There are two major areas of concern. The first will require a thorough review of financial information. The second requires a thorough review of the company itself, its people, its products and services, and how it is run.
Don’t rush to buy a business. Go through the steps outlined here. They will save you both time and money by keeping you from making a poor decision and will help you to find the business that’s right for you.
I have a number of articles that will help you find a business for sale, evaluate the quality of the business, and determine what the value of the business is. Check out the advice in those articles, they’ll save you time and money!
by Steven Schlagel