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What You Might Not Know About Buying A Business - an Infographic

If you're on the path of entrepreneurship and looking to buy an existing business - buyer beware. What I'm trying to say is, there is a lot at stake and lot of effort required to becoming a business owner. That isn't intended to dismay you or alter your plans for buying a business, rather to caution you against unnecessary risks and prepare you for a lengthy process. And, with any process in the business world, there are always unforeseen circumstances that that catch you by surprise. Here's what you need to know about buying a business - as illustrated by this infographic.

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Buying a Business is Not for Everyone

Dreaming is commonplace and encouraged in all realms of life; however risk and effort associated with buying a business deters up 90 percent of those dreamers. It's on you to determine how serious you are about the endeavor, and gauging how the pros of buying a business outweigh the cons.

 

Industry Matters

Plenty of research exists when it comes to which industries are best for first time business buyers, and each industry has its own forecast for success. Determining what industry you want to work and own a business in is paramount to its long-term success. Think of your town or city, and the prevalence of commerce already established - is there plenty of salons or spas? How about bars, restaurants, or breweries? Thinking of buying a boutique-type retail store? If so, what competitors already exist? Thinking about the viable business model of and growth potential is key. 

 

It Takes a Village 

When you're ready to buy a business, you might think it's an endeavor you embark on solely. That's not accurate. Instead, you need to recognize the areas in which you need support for the process. Determine who will advocate for you, and lend their expertise to certain areas of business real estate that are tricky and require professionals. Commonly referred to as an acquisitions team, obtaining the services of your financial advisor or banker, attorney, and business advisor or broker can make all the difference is a smooth, seamless transaction. 

Related Posts

The SBA Will Pay Your New Business Loan For Six Months

Why You Should Buy That Business Now There are renewed benefits to using an SBA 7A Business loan to purchase a business.  But you  may have to act quickly to take advantage of it, because they money is expected to run out before the September deadline.  The Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act (The Economic Aid Act) was signed in to law on December 27th, 2020.  Included in this legislation:

What Is Your Business Attractiveness Score?

What Makes A Business Attractive To A Buyer? Buyers purchase businesses for a return on their investment.  Seller's base the business value on past performance, while buyers place the value on the future potential profits and risk level to achieve them.  When the seller puts themselves in the buyer's shoes, it will be easier for them to understand what buyers are looking for and why, and be better prepared for a successful transaction.  Read on to find out what buyers are looking for and what steps you can take as a business owner now, to prepare yourself and your business for a sale in the future.  

Small Business Valuations: How To Increase The Value Of Your Business

To sell your small business, there are some very crucial steps to take before the listing. For one, it is very important to understand your business’s value in the marketplace.  Obtaining a valuation allows you to thoroughly understand a business’s financials and their value in the marketplace, and give you an understanding of the price at which you should list your business for sale. Before that decision is made, a BOV can give you an inside look at what is working and what might not be.

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