It is very risky to start a business. In fact, research studies have repeatedly shown that up to approximately 99% of all startups fail within two years. The good thing is that you can lower your business buying risk by purchasing an already established business.
In addition to lowering the risk of starting a business, buying an established business enables you to avoid waiting for new business earnings and to immediately start earning right after you make the business purchase.
Further, by purchasing an established business you also tend to have a shorter learning curve due to the fact that buying an existing business allows you to already have a known product or service offered for sale, as well as trained employees who are experienced and ready to work for you.
A crucial initial tip when buying a business is to “Buy A Business That Fits You.” Although, buying an established business is most likely better than starting a new business from scratch, you should not buy just any business. You should buy a business that is ideal for you! Here you need to assess your skills, interests and financial resources. As rule of thumb you should buy a business that you are knowledgeable about. For example, if you have vast past experience and knowledge in the medical field you should go for a business that is related to the medical field.
You should also go for a business that you enjoy. Remember that a successful business mandates putting in a lot of hours and it will be almost impossible for you to work for long hours in an industry that you do not truly enjoy. You cannot just wake up one day and decide to buy a business; you must first do a great deal of research over a extended period of time.
You should start by defining the business that you are interested in. To make this decision you need to assess your professional skills, business experience and core competencies. You should also assess your financial abilities.
If you have done your research and found an ideal business, you should make an offer. The offer of the purchase should include the price to be paid to buy the business, training to be provided to you, assets in the business, financing details to be provided by the seller and the area to be covered by the non-compete agreement. After you have reached an agreement with the seller you should put the agreement into writing.
These are the tips on how to buy a business that fits your situation. Always remember that buying a business is an expensive and life altering transaction and it is highly recommended that every business buyer seeks and uses the advice and expertise of an experienced business broker for the purchasing of any business.
In the Atlanta, Georgia area an experienced business brokerage firm with over 30 years of experience is Bottom Line Management, LLC, found online at https://www.botline.com and telephone at 470-990-0160. Remember that buying a business is expensive; therefore, you should ensure that you do thorough research and buy the right business.