Guide to Businesses For Sale

Save time, money and energy

There is a savings in time, energy, and money when buying an existing business. The lengthy process of researching and creating business plans and models has already been done for you. Also, if there is financing needed for your purchase, it is not as difficult to obtain since a lenders are more likely to finance a business with a proven track record.

I recommend: Sure buying an existing business can save you time, money and energy, but be sure you are buying a successful business bot a future liability. Be sure you review the last 3 years tax returns of the business you are considering buying.

Total Turnkey Operation

It is very beneficial for you to inherit the infrastructure that has already been established by the previous owner(s). This not only includes the customers, but suppliers, employees, equipment, and systems as well. It is a good possibility that the previous owner(s) may offer some insight and assistance, therefore making the transition easier.

I recommend: Be sure to investigate all customer lists, supplier lists, employee backgrounds, equipment leases and perform an entire due diligence process before buying any business. I suggest you purchase Richard Parker's The Complete Due Diligence Checklist & Guide.

Immediate Cash Flow

The cash flow most likely will start immediately, rather than in an unknown timeframe when starting a brand new business. Profitability is not in question as it would be in a startup. An existing business is probably producing a decent income and also has a solid client base established, therefore maximizing the chances of success by the new owner(s). There are many types of businesses such as restaurants, salons and retail establishments in which you can get a good idea of how well the business is doing in part by the traffic patterns.

I recommend: Speaking with the current owners, neighboring businesses, as well as existing customers can give you insight into the well-being of the business before you make your purchase.

Good Foundation

Since the business already has a good foundation, you can focus much of your efforts on building and expanding the business.

I recommend: As you become more familiar with your customers' needs and wants, you will have opportunities to add enhancements and improvements, therefore increasing your chances of higher profitability much sooner than you would in a startup business.

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