It can take years to find the right opportunity, or right business, to buy. When you find one, you will want to be prepared so let’s take a look at how it works. Briefly, you’ll need to follow these steps:
- Begin with a self-assessment. Why do you want to buy a business? What work activities do you enjoy? What type of lifestyle would you like to lead? Are there industries that attract you more than others?
- Outline financial expectations. How much money do you need and hope to earn? This information will be important in determining what type of business to buy.
- Develop a personal financial statement. To know what you can afford – and what financing options are available to you – develop a personal financial statement showing your assets and liabilities.
- Update your resume. Prospective sellers – and lenders – will want to know your background to ensure the business’ continued success. Do you have the experience needed to keep the company going?
- Outline your criteria for a business buy. In this step, you’ll identify a geographic area that works for you, along with potential industries and a ballpark figure of how much you want to spend. Gathering this data provides some parameters for you in your search for the perfect business.
- Consult multiple sources. Contact your professional business advisers (e.g., attorney, accountant, financial planner, business broker) to let them know you are looking for a business to purchase. They will keep you apprised of potential opportunities and maybe able to help with various stages of the process along the way, such as contract review and negotiation.
By being prepared, you will be ready to explore new opportunities thoroughly when the time is right for you to buy a business. Good luck!
Need help? Have questions? Contact us at Synergetic Finance. We specialize in helping buyers like you to identify and acquire the ideal business for their situation!
To your success,
Joe Maas, CFA, AVA, CFP®, ChFC, CLU®, MSFS, CCIM
President of Synergetic Finance