Buy A Business

Types Of Businesses To Buy

Businesses come in several types: retail, restaurant, manufacturing, service and wholesaling. Each has its own requirements for success, but manufacturing can be the hardest to find, with service and wholesale following close behind. Retail shops and restaurants are the most plentiful in any area’s inventory. Choose one that best matches your skills and the niche with which you have experience and knowledge. Jumping in with an expectation to learn aspects necessary to build a successful business can be overwhelming, and before you master all the tasks involved in operating a business, your business can fail.

Buy a Business Factors

The most important factor to consider when you buy a business is the investment versus the expected return. Determine an income goal that best supports your lifestyle, then examine the income potential of the business you’re considering. Figure a purchase price roughly three times that of the amount you have to put down, meaning if you have $50,000 in savings, look for a business that you can purchase for $150,000. Anything more than this will require additional funding. Most business owners selling a businss, will set the price higher than the actual going rate. So even if these prices are out of your range, you can check out these more expensive offerings because negotiation may reduce the asking price.

Location is another factor. Are you willing to commute or are you set on doing business locally? Local businesses may not always be the best idea. The old adage of “Location. Location. Location” is good advice. Look for a location having the greatest traffic if you’re looking for a retail or restaurant. Locations are usually not as big a factor with manufacturing, service or wholesaling.

Finding a Business

Several sources provide help in finding a business. All you need add is shoe leather, gasoline and time to locate them.

Publications

Trade magazines offer businesses for sale ads. Specialty publications devoted to a particular industry or business type can also give you valuable background information which you can use to evaluate your final choices when you're ready to buy a business. References like The Small Business Sourcebook contains listings for publications and other industry information sources. A local university library may be the place to check first to locate this volume since it is rather expensive.

Network

Put your Chamber of Commerce membership to work for you and network with other members. Tell them you’re looking to buy a business in a specified field and ask them to refer leads. Do the same with accountants, attorneys, bankers, credit union managers, CPAs and financial advisors. Professionals in your community are sometimes hooked into the network and will refer you to a prospective business for sale because they may be making a small referral fee by doing so.

Online

Check with associations online for specific buying information. Also check with the websites that list businesses for sale in all areas of the U.S or overseas.

• SBA Business Opportunities Section
• BizBuySell
• BusinessFilter.com
• Business Sale Report (Lists businesses for sale in the United Kingdom.)

Fed Stats.gov can assist you with business market evaluations. Don’t forget Internet searches using the name of your particular industry and area, such a Restaurants Riverside, CA.

Pound The Pavement

Knock on doors and speak with business owners to see if they would like to sell. Not all owners who are thinking to sell list their businesses, and you may luck out or get a referral to another business that may be up for grabs.

Hire a Business Broker

Hiring a business broker may help you find the business you want to buy since they are aware of hundreds of business for sale in any given area. Choose more than one broker to work with and be wary of the brokers you deal with. Check their reputations with others in the industry.