Buying a Business Newsletter - 2016 Archive - Page 3

Ordinarily, a business should pay for itself if it produces like the sellers' last three years. 

When buying a business ask yourself what kind of culture you want to create. #buyabusinessiowa

Today’s lending environment is optimal for buying a business.  There is a pent up demand for good loans and interest rates are reasonable.

Understand the seasonality of the business you are considering buying.  It will affect your needs for cash reserves. #buyabusinessiowa

When you buy a business you are buying a history.  When you start a business you are buying speculation.  Most of the time, buying a business will cost you less.

In preparing to buy a business, make sure you have a solid written story of your capabilities to own and operate a business; the Seller and lender have to buy you.

Other than buying a business, there is no place you can put your money to receive high rates of return, with control over the outcome. 

It is a mistake to rely solely on your long-time bank to finance your new business acquisition; about half the time you will be disappointed at the response.

Buying a business will have tax implications to you as well as the Seller; seek the advice of an experienced accountant or tax counsel to determine the best deal structure.

Smart business owners use the services of a business coach; when buying a business, it will significantly increase your chances of success.