Buying a business can be a little overwhelming. There are many places which list businesses for sale. The most obvious places to start are of course is locally, buy a business in Newspapers and trade magazines; talk to business brokers, and ask your accountant or business adviser if they know of any potential businesses on the market.
Also, research ‘businesses for sale’ using your web access. It is a good idea to list your requirements online and receive instant notification when something suitable comes on to the market.
If you are already in business and are looking at strategic acquisitions, you may find word of mouth a useful method – through customers, competitors and suppliers. Naturally this depends on the relationship you have with them.
Every once in a while you may come across a business you would just love to own that is not for sale and wonder how to approach the business owner.This type of sale happens more often than you would expect, but it must be done in the correct manner to ensure you buy at the right price.
1. Buying a Business – What type of business can you see yourself owning and working in?
If you are not sure and have not had a great amount of exposure to small business your first step is to find out more on the life of a small business owner, have a chat with some business owners and find out how their first few months were when they were new to the business. How has buying a business changed their lives and what advice could they provide. Was their motivation to work in the business or run it at arms length?
Straight talk – unless you are looking at buying the business do not ever ask them personal questions such as how much the business turns over or anything regarding their financials as that is like someone asking you how much you get paid. Do not be hesitant to approach a business owner; you will be surprised just how much assistance business owners are willing to give you if you are genuine and transparent about it. It is a good idea to be prepared and have a couple of questions ready ahead of time, by being tactful and considerate you will get some great insights on operating a business from successful business owners!
2. Buying a Business – Are you a first time business buyer?
It is very normal for first time business buyers to start feeling overwhelmed and a little hesitant about buying a business, if this is the case you might be more comfortable taking a look at a franchise. Many first time business buyers feel that buying a franchise reduces the risk and provides them with additional and ongoing support from the franchisor.
3. Buying a Business – Discover hundreds of different types of businesses for sale
Business buying and selling websites are popping up all over the place which is great for you. There are many sites to look at, here is a few tips to help you research: – Use a search engine like Google and make sure you are ‘Googling’ in the Google site associated with the country you are looking to buy a business. e.g.buy a business(Australia). This will show your local country pages first, making it easier to get to where you want fast.
– If you do not know what type of business you would like to buy, simply search for businesses for sale in the geographical area of choice.
– If you have a clear idea on the type of business you would like to buy then simply type the exact business for sale and geographical area.
– Make sure you do not miss the Businesses for Sale By Owner sites – Google shows a healthy list of them, our research indicates that over 30% of the businesses offered for sale are for sale by the owner (you may see the abbreviation FSBO or DIY ) so Google the abbreviation. Many smart business owners are now acquiring all the skills and information they need to successfully sell their own business without a business broker. This could be a huge benefit to you as the business buyer.
Buying a business successfully is really quite simple when you have all the information and a helping hand to guide you through the process without making avoidable mistakes. It is important to ensure you have as much information as possible because, in most cases, the business broker is working for the seller/owner. You can be one step ahead at all time armed with all the information and a business valuation tool will put you in the very best possible buying position for a win/win outcome.