A good place to start when buying a business is to reflect on your own motivations, lifestyle needs, and what drives your energy. A business that ticks all the boxes for you will be much less of a challenge.
Buying a Business Newsletter - Page 7
Valuing a business considers many factors, and simple rules of thumb are not reliable. Seek experienced help to understand the value of the business you may be looking at.
When growth through acquisition is your strategy, make sure there's good alignment between your current business and your target.
The negotiating and deal term experience of a broker can help you avoid a number of landmines and shortcut the process of buying a business.
Buying a business is a little like courtship. The deeper you understand each other the harder it is for little imperfections to end it.
While analysis paralysis is not a great recipe for successful decision making, a prospective buyer should never fail to ask enough questions to understand the business; and the seller's motivations.
If you don't like the kind of business you are looking at and it doesn't excite you, no amount of profitability and financial soundness will overcome that.
Want to spend a bunch of money and wait several years to get it back? Start a business. Want to spend a bunch of money and see an immediate return? Buy one.
Preparing a business for sale should start the day you buy it. Making smart growth decisions will maximize its value.
You can never really ask enough questions when buying a business. Gather your information, make decisions, and then take action.
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