5 Things You Must Do Well When Buying a Business to Not Get Burned

Are you not sure what Business to buy? Need to know what is a fair deal?

Martin Smith thought he was buying an established business with good credit and collectable accounts receivable. The day after settlement the surprises began.

Inventory could not be used because expiration dates had past. Money shown as receivable had already been collected. Vendors that were only willing to ship COD. Over $100,000 of real problems that should have been detected during the business purchase process popped up and almost shut Martin down.

Can you afford to be surprised? Of course not.

You have the power to not end up like Martin.

Owning your own business is part of the American Dream. Buying a business has many advantages over starting one from scratch if you know how. Be prepared and get all the benefits of buying an existing business.

Tangible benefits such as existing cash flow, existing customer base, existing systems, knowledgeable employees, and locations can be obtained cheaper by buying an existing business than starting from scratch.

1. Understand and Know What You do Well and Like

You must really look at the activities you like to do and find a business that allows you to do them. For instance some people want customers to come to them. A retail store may work well for them. On the other hand some owners would loose their minds staying in a store all day; perhaps something with outside sales will work for them.

Are you a people person, a thinker, a leader, or a salesperson? Do you like steady hours, flexibility etc. How much money do you have to purchase with? How much money must you make every week?

Remember the process of buying the business is not the same as running one. Do everything possible to make sure you buy one you will love running.

2. Make a Comprehensive Search for a Business

Make sure you know how to look for a business. Don