Key Considerations When Buying a Business

Buying an existing business has a lot of benefits including acquiring an existing customer base, cash flow, and a solid reputation. You do, however, need to determine the right business fit for you.

Determine your goals. What type of business interests you? Consider your skills and experience. What level of income do you need? Do you want a steady/living wage income, or something you are willing to develop and grow? How much debt can you service above your living wage income? Will the business provide that? What are your long term plans? Is this a short term investment to build and sell? Or is it your last Dream job?

Research the type of business that appeals to you. How is that business performing today? What are the pluses and negatives (is there room for growth)? Check out the locations that are available for the type of business you’d like to run. Will those areas be enjoyable to live in and work in for you and your family?

When you’ve found a business you’d like to pursue, you will need to check out its financial health (cash flow, sales, profit/loss, and growth potential). If possible, you will want to see how the employees interact (possibly with a secret shopping trip). You can also learn about the employees’ experience and qualifications in a buyer/seller meeting. A professional business intermediary can help you with all the steps necessary to buy a business.

These are just some of the questions to investigate when buying a business. We’ve got experienced business intermediaries who can help you find the right business for you. You can be your own boss!