Why do people go into business for themselves?
While individual reasons and situations vary, there are a few reasons that seem to be common to most business owners:

• To do my own thing, control my own destiny.
• Don't want to work for someone else.
• To better utilize my skills and abilities.
• To make money

What does it take to be successful?
Having capital to make the improvements you want and sustain the business as you transition into ownership is certainly very important. You must be willing to work hard – often putting in many long hours. Business owners often take on many different roles, including the less desirable ones. Unfortunately, many people think they can buy a business and then just sit behind a desk and work on their business plans. To be successful, you need to be willing to step out from behind the desk and do what needs to be done.

What is the advantage to buying a business rather than starting one?
The greatest challenges to new businesses often come during the start-up phase: finding customers, proving there is a need for the product/service, and building reputation among others. Existing businesses have a track record. This allows you to review financial records and other important business information. And, sellers will often train the new owner to take over the business help with financing. The training and financial assistance can make a real difference in your success.

What kind of business should I look for?
It is important to find a business that is a good match for your skills and interests – one you could successfully operate and take pride in. The price of the business and the income are two other critical factors: You need to be able to afford it and it must provide for you basic needs. You should also consider how you can improve the business: you shouldn't buy a business unless you believe you can do better than the present owner.

What happens when I find a business I want to buy?
If you’ve decided to buy a business, your first step is to find a reputable business broker who can guide you through the process and secure a successful transaction. Once you have found the business and received answers to your questions, your business broker will assist you in preparing an offer based on the price and terms you feel appropriate. Offers are usually subject to your approval of the sellers supporting financial documentation.

What are my costs for using a Business Broker?
In most cases, the Business Broker is paid a “success fee” by the seller based on a successful transaction at the close of a sale. If a buyer pursues a company that is not currently listed with Coldwell Banker, that buyer might pay for the Broker’s services.

What determines the price of a business?
The seller usually has an idea of what he/she feels the business is worth. The business broker will take this into consideration and make a recommendation to the seller based on the market and the company’s financial records. Often they come up with a low and high price depending on how much cash the seller requires: the more cash, the lower the selling price.

Do I need an attorney?
It may be a good idea to have an attorney prepare and/or review the legal documents. However, make sure the attorney is familiar with the business buying process and can handle the paperwork in a timely fashion. Most business brokers can refer you to attorneys who are familiar with the business buying process and can ensure that all of the details are handled properly. Business brokers are not qualified to give legal advice.