Consider pricing a business through a third-party

The Web is jammed full of database-type sites that list businesses and business opportunities for sale. They tend to make their money by charging a fee for brokering the deal (to the seller) and add-ons, like financing for the buyer. Do remember, though, that these are initial asking prices, not sales.

I recommend: Among the biggest of these are VR Business Sales, BizBuySell.com, BizQuest.com, BusinessforSale.com, BusinessMart.com and Sunbelt Network.

Figure out how much you should pay

Valuing a business is a black art, to say the least. You'd need to be part accountant and at least part cowboy to get it right, since the task requires both a precise understanding of the numbers but also a willingness to stare the current owner in the eye figure out his or her real motivation in selling. Is the business falling apart? Or it is just time for the current owner to move on?

I recommend: There are a number of professional valuation services, including Nationwide Valuations and FMV Opinions and straightforward appraisers, including American Value Metrics. A bit cheaper is software designed to run numbers based on industry tables, like ValueSource and ValueAdder. BizComps compiles actual sales by sector and geography over 10 years.

Get the money in line before you negotiate

The government will lend you the cash to buy an existing business. So will many banks if you have a decent track record in business.

I recommend: Check the Small Business Administration first. BizBuyFinancing, a Web site, purports to guide you through the SBA process. Banks that actively seek small business loans include Regions, Wachovia, Bank of America, Wells Fargo, Citibank and Washington Mutual.

Feeling overwhelmed? Start off slow with some reading

Unless you have years under your belt running your own show, valuing and negotiating a business purchase can be hard to do overnight.

I recommend: There are plenty of books, Web sites and courses to consider, of varying seriousness. Consultant Peter Siegel runs a blog on buying a business. You could download Toby Tatum's e-book guide for small business buying, or Richard Parker's similar product at Diomo. Park is endorsed by Donald Trump, who is in a similar business through his Trump University. Finally, entrepreneur Ken Hendricks has a succint, refreshing take on sizing up the opportunity at Inc. magazine.