Buying a Business Newsletter - Page 28

Valuing a business is very objective. The bottom line is to make sure the expected return on investment is at an acceptable level.

Buying an online business has increased risk. Understanding website back-office administration can mitigate that risk.

Don’t limit yourself to one opportunity. Evaluate multiple opportunities then decide on the one that excites you the most.

When purchasing a business with a partner, make sure your partner is trustworthy and has complimentary skill to yours.

Business Brokers can be a tremendously valuable asset. Leverage their expertise and their role as an intermediary to keep a deal moving forward.

Don’t be shy when asking questions about a business you are interested in. The seller may not want to give you the information, but you have to ask. Nothing ventured, nothing gained.

Businesses with recurring revenue or niche expertise can be very attractive. This also means greater competition from other buyers and premium prices.

The SBA will require a minimum of 10% seller financing. This allows the buyer to leverage a seller's experience.

True due diligence happens after agreement on a price. Make your offer contingent upon your findings in due diligence.

The listing price is a conversation starter, not a deal killer. Don't let a listing price keep you from creating an offer that makes sense for you.