How to buy a business

Although buying a business is not the best form of entrepreneurship, it nevertheless has its merits. If you buy an existing business, you are much less at risk than when you start your own business, since much has already been done.

You will need

• the contract

• Calculator

• Accountant

• Lawyer

• Business broker

• Credit or financial savings for the purchase of a business

• Computer with internet access

Instruction manual

1

To buy a business, you need to figure out exactly what you want to buy. To do this, you need to understand what you are better at, what your craving is, what experience you have, etc. Based on such self-examination, make a decision about the area in which you should buy a business. When buying a business, you become its full owner, so you need to have full experience in the selected field.

2

To buy a business, you need to know who to buy from. Ask your accountant or lawyer, ask friends who can give you tips. As a last resort, study online business exchanges or a column of announcements in specialized publications.

3

After you have selected several businesses for potential purchases, study their past - statistics over the past five years, how profitable the business is, incomes increase or decrease, what are the necessary costs, competitors, suppliers, find out the reason for selling the business, etc. Perform this analysis on all the projects you have selected.

4

Announce the price. There are several methods to evaluate a business. The best method is to compare with the market value of the company. An accountant will help you calculate the market value of the company.

5

To buy a business, negotiate a deal. Quietly offer your terms. Do not insist on instant reaction and get ready to confront objections. In any case, keep in mind the upper limit of the funds that you can spend on buying a business and do not exceed it.