Censemaking
Focus is one of the most important traits when it comes time to picking the right business for sale to suit you.
Once you begin the process of elimination, you will be able to find businesses that interest you more than others.
Once you have found businesses that peak your interest, you can inquire for more information about them to help you narrow your search down.
When contacting business brokers, don’t be caught off guard if they won’t release a lot of information to you over the phone, or by email.
Business brokers have been trained to not give out all information that is available.
Some of the reasons include:
● You could possibly be an employee of that business, or a possible competitor looking for information about that business.
● 90% of prospective buyers will not buy the business they are inquiring about, or will not know what kind of business they want.
● Brokers know that they need to get to know you a little bit more to be able to help you, they need to know your needs and capabilities.
Most business brokers are agents for their sellers.
Brokers work in favor of the buyer, as well as the seller.
If the seller does not buy a business , the broker does not get paid.
It’s always wise to be prepared to pay your broker a visit.
Buying a business is far too big of a decision to make over the phone, or through
email.
Due to confidentiality reasons, not enough important information can be placed online.
When you start to look at specifics of businesses, there are three main topics you
should focus on:
1. Focus on the business. If you don’t like the business, financial aspects will not matter to you. It’s important for you to find a business that you like and feel you can grow. Keep in mind that businesses that have been in operation for over three years, have more than likely made a living for someone and can do the same for you.
2. Focus on gross sales. Remember to focus on the total gross sales for the year as this shows the business earning potential.
3. Focus on what you can do with the business after the purchase. Remember to not just focus on what the current owner is doing with the business, but have a plan of what you can do once you take over.
30% of your decisions to buy a business should be based on how the current owner
has run things for the past few years.
70% of your decision should be based on what you plan to do after you purchase a business. If you need more help talking to an investment banker could be the right choice. Amongst many of the services they provide one of them is consulting business owners who are looking to buy a new business. If you are interested to see what other functions investment banks provide read through this Wall Street Prep article.
Have a plan to continue running things the way they are, or a plan for improvements
and changes.
You cannot change the past of a business, but you can change its future.
