This Buyer Tutorial provides the basic steps to business ownership and important information that should be considered throughout the buying process. Because buying a business can be a complicated process, this tutorial cannot replace the advice and services of a professional Business Broker, attorney and CPA.

AM I READY TO OWN A BUSINESS?
Going into business for yourself is a big step, one that can be as stressful as it is exciting. Since 90 percent of all those who purchase a small business have never owned a business, it is important to have a professional Business Broker who can guide you through the process – and the start of that process is determining if owning your own business is right for you.

Running your own business is more than a job; it is a lifestyle change. You may find yourself working longer hours and you’ll need to be able to make all of the decisions. Be sure you have clear goals for business ownership – is this an investment? Are you trying to expand your existing business through a strategic acquisition? Are you familiar with the marketplace and industry trends? What are the risks of business ownership? Be sure to discuss these questions with your Business Broker.

Once you’ve decided purchasing a business is the right move for you, you need to find the right opportunity.

FINDING THE RIGHT BUSINESS
Finding the right business opportunity is as important as being sure you are ready for business ownership. If you are working with a Business Broker, you’ll have access to many unique and successful businesses opportunities that you won’t be able to find on your own. When you find a business you are interested in, there are a myriad of considerations, among them are the following:

• How long the business has been in operation.
• How long the present owner has owned the business.
• Why the present owner is selling .
• The company’s financial situation.
• Terms and conditions of the sale.

It is important to know how much money you are willing to invest in a business and how much income you require to meet your basic financial needs.

Once you’ve found a good match, it’s time to take a more in-depth look at the business.

CHECKING OUT THE BUSINESS
Visiting the business location is important to evaluate the location and the appearance of the business. Your Business Broker can set up a site visit which will allow you to tour the facility and meet the current owner.

We will provide a profile of the company that outlines the opportunity.

Be sure to ask a lot of questions that will help you determine if this is the business you want to buy. Is the space rented or leased? What is included in the sale (equipment, proprietary information, etc.)?

MAKING AN OFFER AND PERFORMING DUE DILIGENCE
Once you have your questions answered and you decide to purchase the business, it is time to make an offer. Your offer should be subject to verification of all the information you have received. The main purpose in making an offer is to see if the seller will accept your terms, price, and structure of the sale itself.

If the offer is accepted, you may need the assistance of your Business Broker and other advisors to verify the seller’s information and the contingencies of the deal.

Unless you are very familiar with the type of business, it is often a good idea to include a post-closing consultation period with the seller as part of the deal.