Monday, December 23, 2013

Three Things to Be Sure of Before You Buy a Business

Buying businesses is not for the faint of heart. As of 2013, there are approximately 28 million small businesses across the United States -- and according to multiple studies, somewhere between 50-70% of those will fail within the first 18 months of operation. Nevertheless, knowledgeable business people can reduce their risk and every year there are thousand of people who succeed with pursuing their dreams. If you're one of those savvy would-be entrepreneurs, make sure that the risk you're taking is a calculated one. These three pertinent tips will be useful whether you're looking to buy a car dealership, a bakery, or a turnkey eCommerce website.

    Things to know before buying a business
  • Assess Your Budget - Approximately 50% of Americans dream of owning their own business, according to a poll by BizBuySell. If you're one of those people, you should make sure that you not only have the money to spend, but money to fall back on as well. That way if things don't work out, you'll only be out a business, and not your house and all your assets
  • Learn the Field - Do you want to run a restaurant or bakery someday? Good! Then you should know what is involved. Learn of the demand for certain kinds of food. Make sure you learn what kind of operating costs to expect. Make sure to research the industry and draw up a business plan. Going into a new industry blind is a surefire way to fall flat on your face.
  • Only Trust the Experts - If you're looking at what's involved with buying businesses, find a knowledgeable broker. Traditionally, business brokers screen different buyers for an owner who is looking to sell. Learning more about the entire process will not only give you an inside advantage, but a chance to see which businesses have a better chance of being successful after they're sold.
Keeping tips like these in mind will go a long way. As you look at buying businesses, you'll see that there are a lot of business investment opportunities out there. Some of them will be worth your while, while others won't be. If you have your proverbial house in order, you'll have the best possible chance of becoming a success as a new business owner!