Jon Hunt

Thursday, August 30, 2012

Are You Ready to Buy a Business



I frequently talk with "Buyers" who think they want to buy a business, but they really are just on the first step of the staircase.

If you are reading this Blog, then you have some interest in buying a business.

Here are a few suggestions to help you along the way.

1. Determine how motivated you really are. Are you only interested if the perfect opportunity comes along? If so, you'll probably never get there. No opportunity is likely to be perfect.

2. Are your expectations for revenue and profit realistic. If you want to buy a business for $25,000 that will pay you $100,000, then "No," your expectations are not realistic.

3. Do you understand what the term "Seller's Discretionary Earnings" or "Owner's Benefits" means and how it's calculated. You need to know. This video is for business owners, but it provides and explanation and example. Seller's Discretionary Earnings

4. Do you have an idea of what types of businesses will match your skill set?

5. Do you have the financial capability to buy a business? You may not need the full purchase price. Owner financing and SBA backed loans are possible, but in all cases you will need to have some cash available for the investment.

If you are motivated, have realistic expectations and know your strengths and weaknesses you might just be ready to own your own business.

I can help you find a businesses that is right for you and guide you through the process.

Jon Hunt
Senior Associate
Florida Business Exchange

1 comment:

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