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Helpful
tips about buying a business.
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| Buying
your own business is a big step! |
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If
you are an individual considering the purchase of an existing
business, you may be doing some soul-searching about your
own capabilities. If you are a business owner considering
expansion through acquisition, you may be unsure of how
to carry out this unfamiliar responsibility. Buying a business
can be overwhelming for the novice buyer.
There are many complexities involved in a purchase, and
many pitfalls for the inexperienced buyer. A successful
purchaser develops goals and plans, identifies and locates
candidates for purchase, evaluates selected companies, formulates
the purchase proposal, obtains required funds, negotiates
and closes the purchase and integrates operations after
closing.
It
is not easy to find a successful business that an owner
is willing to sell at a fair market value. The following
information will lead you through the buying transaction
and point out problems and opportunities.
Many
buyers decide to buy a business for the wrong reasons
or they chose the wrong business to buy. They
may have been laid off and, as a result, become disenchanted
with corporate life. They may have been forced to
retire early or they may feel that they can make more
money on their own. While all of these reasons are
legitimate, they are not sufficient to warrant a business
purchase.
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| Before
rushing into the purchase of a business, evaluate
yourself and your skills objectively. Make sure
you have the psychological as well as financial
resources to run a business. |
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| 1.
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Have
you worked in this type of business before?
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| 2.
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Are
you willing to make the time and energy
commitment necessary to learn to run the
business?
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| 3.
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Do
you have the money (and credit) to acquire
the business you want?
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| 4.
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How
does your family feel about the commitment
that you must make to run a business? Do you have
their wholehearted support?
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| 5.
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Are
you an optimistic, enthusiastic person
who does not get discouraged easily?
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| 6.
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Can
you make decisions quickly and easily?
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| 7.
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Do
you have the skills of a salesperson (if
required in the business you are looking to purchase)?
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| 8.
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If
you have chosen a specific business to buy,
have you made that decision based on rational
reasons or do you have a large emotional stake
in the outcome?
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| 9.
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Do
you have the skills to take over the full
range of management tasks necessary
in running a business successfully?
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