How to Buy Good Business - Amazing Business Idea Tips by Sunbeltne
Owning and running a small business is quite different than working for a larger company. You may provide some new perspective but the principal requirement for success will be energy and hard work.
Think positive while buying a new business.
Provide a resume and financial statement. Remember, the seller will most likely be your banker and will want to be convinced that you can run "his" business successfully, protect the employees, and pay down the note.
Don't drag out your due diligence after agreeing on price and terms. Keep the focus on key business issues and avoid getting tangled up in minutia. This is not the time for an "audit."
Are you up to the challenge?
Owning and running a small business is quite different than working for a larger company. You may provide some new perspective but the principal requirement for success will be energy and hard work.
Owning and running a small business is quite different than working for a larger company. You may provide some new perspective but the principal requirement for success will be energy and hard work.
Just about anybody can buy assets, such as inventory and equipment. But you are buying a company. Focus primarily on the company's discretionary cash flow or EBITDA, i.e., what the business really earns now for the seller, then determine what it might earn for you in the future. Most good small businesses will be priced at two to four times cash flow.
If there will be a landlord other than the seller, he usually will have little to gain by changing the status quo. Go to your initial meeting with him armed with your resume and financial statement.
About Author http://www.sunbeltne.com - Top Business Broker Firm
SUNBELT is the largest office network of business brokers in the world. Whether you are looking to buy or sell a business, we have the resources to help you reach your goals. With hundreds of offices worldwide, and the most skilled brokers in the industry, SUNBELT has the marketing savvy and worldwide exposure that you can only get when you list your business for sale with us. If you are looking to buy a business or buy a franchise, no other business brokerage company can offer the same selection and quality of businesses as SUNBELT in New England territory including Massachusetts, Rhode Island, New Hampshire, Maine & Vermont. So when you decide to buy or sell a business, don't look any further than our highly-trained network of SUNBELT professionals.
