How Will I Know How to Buy the Right Business?



Yedda – People. Sharing. Knowledge.I know that there are business professionals who will guide people to buying a business
The only person that knows the right business for you.....is you.

But before you start looking for a business, you should ask yourself - What am I good at?  What do I like to do?  What niche needs to be filled (i.e. what are people seeking and want to buy)?

Then once you know the answers to those questions, start looking at businesses for sale.  There are several "business for sale" websites that you can view.  Just Google - "buy a business" and start looking.  This will give you an idea of what is currently available.

However, if you decide that there is a particular type of business you really like, are good at or believe there is a need for, then you may want to consider approaching a business owner that has NOT listed the business for sale.

A good business intermediary (a.k.a. business broker) will be invaluable to you.  How do you know if someone is qualified to help you?  Once again, ask some questions.  Here are some examples:  how long have you been a business broker?  What is your education and training?  Do you have a special license?  Do you have references that I can call?  Are you a member of the International Business Brokers Association? Do you specialize in selling a particular kind of business?

Most competent professionals will not hesitate to answer these questions for you.

One other thing to remember:  A real estate license may be required in some states for a broker to sell a business (with or without real estate).  But the important thing to know is that just because someone has a real estate license or is a realtor (which means the person is a member of an organization for real estate licensees), it does NOT mean they know how to help you buy a business.

Hope this helps.


Comments

Post a Comment

Popular posts from this blog

Why Lowering Loan Rates Won't Boost SBA Loans

Today’s article on Heraldnet.com says: "Congress is puzzling over how to improve lending rates to small businesses in light of a lackluster performance from loan programs through the Small Business Administration." The crux of the small business credit crunch is not about interest rates or lack of investors willing to purchase loans….although both play a part….its about credit quality. There is a key piece of the pie that no one is talking about. That is: investors want to buy perfoming or “seasoned” loans that have been in good standing for a significant period. A “seasoned loan” is one where the borrower has made payments on time since the loan was originated, the collateral value hasn’t deteriorated and there are generally no issues or problems. That means that any SBA loan made today would generally require 12 months of good performance before an investor would be willing to purchase it at the current premium. However, if during that “seasoning period” the borrower goes i
Read more

What's Goodwill Got to Do With It?

Image
The other day an attorney friend said in his best Scrooge-like voice, “I don’t like goodwill.” Because we were discussing business sales, I knew he wasn’t referring to the happy, peaceful, holiday goodwill. He meant business goodwill except he called it “blue-sky”. Contrary to popular belief, the word blue-sky is not synonymous with goodwill. Goodwill has more than one meaning especially at this time of year, but blue-sky isn’t one of them.   My attorney friend was confusing something of no value (blue-sky) with a sale-able asset (goodwill). While some owners do have blue-sky dreams, the buyer purchases goodwill and tangible assets when a business is transferred in an asset sale.  According to Merriam-Webster’s dictionary, Goodwill is:  1)     a kindly feeling of approval and support; benevolent interest or concern;  2)     the favor or advantage that a business has acquired especially through its brands and its good reputation;  3)     the value of projected ear
Read more

Why You Need to Know What Business Buyers Want

Image
  As a business owner, you may have one or more choices when it comes to exiting your business.  You'll either pass it on to a family member, sell it to a third party or shut it down. Generally, your business will have a different value in each of these situations.  Isn't it a good idea to know how much your business is worth now so you can decide which choice is best for you when the time comes? Recently, I spoke with a business owner with a 20-plus year track record who is considering a sale of his business. In his opinion, he has two options. One option involves selling to a family member.   The other possibility is to sell to a larger company.  I explained that one choice might bring a higher value. And the important thing to know, is which one.   There are several types of buyers : •     Financial buyers – motivated by income, usually individuals. They focus on companies with revenues under $10,000,000. These make up the bulk of business sale transaction
Read more