One of the easiest and simplest parts of analyzing a business -- that is always made difficult, even by the Harvard Business School wizards -- is valuing the equipment of a business you are wanting to buy.

However, if you do it my way (not generally taught in the business schools) this is extremely simple, won't cost you a penny and will actually make running your business easier in the long run.

But before I reveal my secret, just know (in case this is all new to you) that if you ask four different people in the industry how this is done, you're going to get four different answers. And none of them will be correct.

And so what I want to get across to you here is the best way to determine the value of the equipment in a business you are wanting to buy is simply go to the people that supply you with the equipment.

Why?

Two reasons:

1.) They have things just like a Kelly Blue Book that they use in the auto business that lists what the different pieces of used equipment are, and you