5 Things to Know about Buying a Small Business Every year, employees get tired of the frustrations associated with working for someone else and make the decision to start a business of their own. While some people with the finances to back a large-scale business will often start their new venture from the ground up, those who want to start on a small, more personal scale may elect to purchase an existing business. While a business that is already in operation has already been tested and doesn’t require time and money investment that is required when starting from scratch, there are some important things to know before you start. 1. Choosing the Type of Business to Buy It is wonderful when you get to make a good income by doing something you love to do. However, pursuing your dream business is only practical when you have some experience in the industry in which it is based. Your business sense needs to come from knowledge and experience that will serve as the basis for all of your decisions. 2. Find the Best Location Location is an important factor in the success of your business and in the convenience it will bring to you. While it will make it easier for you to buy a business close to home, make sure the location and its residents are the right choice for the type of business it will be. For instance, an office printing supply company wouldn’t be a good fit in a residential area where there are more families than businesses. 3. Do Your Research on the History and Finances of the Business While suddenly having the ideal business of your dreams become conveniently available, you also want to know whether the profits or lack thereof had anything to do with the owner’s decision to sell. Examine all forms of financial records to learn what went out and what was coming in during the entire period of operation. You should also look for any history of lawsuits or other incidents that may have tarnished the business’s reputation. When you buy a small business, you also buy any positive or negative publicity that goes with it. 4. Learn to Do a Business Valuation Although the owner has placed a value on the business, you never know where the figure came from. Although the business may have great sentimental value to them, it shouldn’t be a part of the value placed on the business when selling. The value of the business is based on the income that the business has generated. If you can’t determine the true value of the business, consider hiring a professional business valuator to do the job. It will be worth the investment. 5. Facts about Small Business Financing About 93% of the potential borrowers looking for financing for their small businesses are usually denied. Once everything else is in place, and you have made the decision that you have found the right business, finding the funding you need to carry through with the business acquisition will likely not happen at the bank. Most people either don’t have adequate funding or don’t wish to use their own available cash to invest in the business. One way to get the money needed to buy a business with little to no money of your own is with Beyond Breakeven, Inc.(BBI). This company offers a free 1 hour consultation to give potential business owners the strategic business
planning session they need to learn how to get the funding they need when and if the bank says no. To learn more about BBI or to schedule a free consultation, visit www.ifthebanksaysno.com. Bio Beyond Breakeven, Inc. provides alternatives to bank funding â€œif the bank says no.â€? They offer solutions for potential business owners who want to purchase their dream business but who are unable to obtain funding through the traditional means with banks or other lending institutions. Summary While many small businesses are bought to fulfill a dream by the new business owner, taking the time to do some strategic business planning can save money and heartache. BBI helps potential owners buy a business with little or none of their own money.