Taking the leap and buying a business is both an exciting and complicated endeavor, especially if you don’t have the right team on your side. Learn how to navigate the process in this guide from our trusted business brokers serving Utah, Wyoming, Nevada, and Idaho.
Buying a Business - Tutorial
Set Your Priorities Straight for Business Ownership
The majority of people who purchase a small business have no prior experience with business ownership. You must set clear goals before you begin looking into businesses for sale. While owning your own business allows you to forge a new career path and be your own boss, it can be a big change if you don’t know what to expect.
Consider all of the ways that this decision will impact your life, including:
- Changes in income
- Privacy and security concerns
- Extended working hours and availability
- Tax and financial logistics
Buying a business can affect your entire lifestyle so don’t go into this process without considering all of the implications.
How to Purchase a Business in Five Steps
Purchasing a small business involves many moving parts, from establishing purchase agreements to completing buyer registration documents. Get a crash course in the basic process below.
Your journey to business ownership should begin with collecting basic information regarding business valuation. You’ll have to figure out not just the asking price but also the business’s cash flow and income opportunities, as this may affect your financing options.
Visit the business as if you’re a customer to check out the location. If you don’t like what it has to offer, you shouldn’t move forward with the sale.
Now is the time to connect with the seller and ask them deeper questions regarding the business, including:
- What is the average sales history?
- How much is the rent?
- When does the building’s lease end?
This information can support your negotiation strategies to get the business at a better price.
After reviewing your financing options and gathering key information, you can make an offer to buy the business. The offer should not only include a final closing price but also your terms for purchasing.
The final step before closing the sale is to perform your due diligence and carefully review essential aspects of business ownership, including:
- Financial records like bank statements and profit and loss reports
- Licensing requirements
- Zoning regulations
- Contracts and lease agreements
This lets you iron out any contingencies regarding the purchase.
Make Purchasing a Business Simpler
A business broker can review every aspect of business purchasing with you and answer all of your questions. These specialists will help you find businesses for sale and guide you through the buying process.
Partner with an Experienced Business Broker – Contact Business Brokers of America
Buying a business can be overwhelming and confusing if you don’t know what to expect. Never buy a business without a trusted broker by your side. Reach out to Business Brokers of America at 801-935-8919 to discuss your goals and kickstart the process.
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