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Buying An Existing Business Part VI of IX

Written by: Bob Macek

Article Overview: This is the VI Part of a IX Part series of articles discussing the buying of an existing, small business. In this article we offer suggestions and sources the buyer might employ in finding and purchasing a small, existing business.

Buying An Existing Business Part VI of IX

Finding A Small, Existing Business
There are several different ways to find and purchase a small business. You might seek out business brokers that specialize in selling small businesses; you can search the Internet, look in the Newspaper's Classified Advertising under "Business for Sale", ask your friends or even drive around the business community searching for a business.

Here is a list of some additional resources:

The Yellow Pages
The Public Library
The Secretary Of State
Business Opportunities Advertisements
Trade Magazines
Trade Organizations
Suppliers
Banks
Accountants
Commercial Real Estate Firms
Attorneys
Place Your Own Advertisement

And finally, you don't have to limit your search to businesses that have been listed for sale. Should you find a business that you might be interested in owning, seek out the owner and let him/her know your interested purchasing their business.

You will find there are many small businesses out there for sale. There are also many great deals. Finding them is not the problem. I’ve found thousands in my 25 years as a Business Broker. The big problem is making sure they do what they say they do.

Using a Professional Business Broker to discover businesses for sale, will reduce your time and effort to do that work, and also reduces the loss of your enthusiasm caused by failures and rejections. The Professional Business Broker also finds businesses that you might never locate through your own efforts. Moreover, if you are not sure of the type of business being sought the broker can make suggestions. Here, however, I must warn you: not all brokers are good judges of a buyers’ qualifications. The problem, therefore, is you could waste time pursuing an unsuitable business.

Questions You Should Ask A Business Broker:
What is your background and experience?
Are you a member of a trade association?
Do you hold any accreditations?
What services do you provide?
Who do you represent?

What You Should Expect From A Business Broker:
Business brokers can screen businesses for you. The better business brokers avoid listing many of businesses because the seller fails to provide full financial disclosure or because the seller has overpriced the business. Use of a broker will helps you avoid these pitfalls.

A professional business broker begins by discovering your interests, skills and financial situation. The Broker will then assist you selecting the right business fit. With the aid of a professional business broker, you may uncover that a small business you had never thought about.

Buying and selling of a small businesses is an emotional experience for both the buyer and seller. A professional business broker helps both buyer and seller to stay on track during the transaction and help to minimize concerns that might come up.

The professional business broker is aware of the current laws and regulations associated with licenses and permits. They are aware of the best ways to cut through red tape and can cut months off the buying process. Using a professional business broker reduces the possibility that you might forget some crucial forms, fees or steps in the process.

A Few Of The Services Offered By A Professional Business Broker Include:
Collecting and analyzing financial and other data.
Preparing answers to buyers’ questions.
Writing a letter of intent for buyers based on buyer's terms.
Mediating the negotiation.
Assisting buyer in filling out applications for permits.
Assisting buyer in filling out applications for insurance.
Assisting buyer with the lease.
Mediating conflicts, if any, between buyer and seller.
Providing and receiving guidance to and from attorneys and accountants.
Holding deposits in a trust account.
Preparing a closing statement.
Helping setup escrow.
Arranging and attending the closing.
Performing various post-closing services.
Coordinating All of the above steps.
Maintaining files for future reference.

In conclusion keep in mind when looking for a small, existing business there are many excellent businesses on the market at any given time. Have patience and take you time to find the business that is right for you. Buying a business will change your lifestyle and the decision to buy can be highly emotional.

Success in your quest!

Related Articles
  Buying a Business FAQs
  Buy An Existent Business or Start Up Your Own Business
  Buying a Business
  Choosing a Business
  Should you buy or start a business?

Article Tags: accountants, additional resources, business broker, business brokers, business community, business for sale, business opportunities, business questions, businesses for sale, classified advertising, commercial real estate, professional business, public library, rejections, secretary of state, several different ways, small businesses, state business, trade magazines, trade organizations



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