subject: Don't Do It Alone - How To Buy A Business For Sale [print this page] It's no wonder that we are starting to think how viable the stock market is and whether we should really think about our home as our most important asset, the biggest part of our retirement portfolio; do we have alternatives? Many would-be investors are thinking about the purchase of a business for sale, as this is so intriguing. Many advisors and investment consultants might tell you that this is a rather risky choice, but if you feel that you have a certain experience or skill set relative to a certain type of business, go ahead. Make sure that you refer to competent professionals and that you always go through a professional and well-run process of due diligence. If all is well, you will definitely be able to make a great return on this investment.
While some entrepreneurs are certainly capable of buying any number of businesses and entrusting their care to general managers or appointed executives, the majority of entrepreneurs can be classified as "hands on." They know how important it is to understand what makes the business "tick" and are not afraid to get their hands dirty while looking after even the most menial of tasks, if need be. You will certainly not want to take on the pleasure of owning a new business, just to be saddled with 60 to 70 hour work weeks, but you must realize that it will take more than a small share of your time and attention. Buy a business for sale only if you have a real interest in its field. You simply cannot afford to lose interest, just because you are somewhat passive about the products or services sold there.
Never branch out on your own when you are thinking about buying business assets. You will have to invest a certain amount of funding to move this process forward whether you buy the business or not, so spend some of these funds on your advisors. You need an accountant who has experience in this line of business and knows about tax affairs. An attorney should be proficient in dealing with contract law and you should also consider an independent business valuer. Almost invariably, your professionals should engage in their business near the location that you are considering. As such, they will be in possession of certain facts and figures and other intangibles, that may be petty in some respects, but could turn out to be critical alongside all the other information. While the actual facts and figures will form the basis of your decision, some of the information that you will hear from your local advisors may well push you in one direction or another. Never go it alone when considering a business purchase, as money invested in advice now will be well spent, certainly when considered against those "unforeseen circumstances" in the future.
by: Richard K Parker
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