Guest Blog by Carol Gresham, Confidential Business Intermediary
Needless to say, buying a business requires much thought, understanding of the process, and money.
To be successful long-term, your spouse/partner should be involved in discussing the process and ideas with you. They know you best. And, the time involved in owning your own company will impact everyone in your household.
There are many books you can purchase that will walk you through the steps but unless you are an accountant, an attorney, a licensed real estate agent, an appraiser, a contractor and office manager, the tasks at hand can be overwhelming.
So what are some of the first steps? First consider why you want to purchase a business. Next think through what types of businesses you would enjoy managing and growing every day. What are your strengths, weaknesses, likes and dislikes?
If you are not quite sure, then determine what you definitely do not like or enjoy doing.
Unless you have a large sum of money ready to spend, consider the financial aspect at first from only an investment perspective. Create a personal financial statement and visit with your banker to determine your investment level, cash available and required return on your investment.
Your next step would be to contact a confidential business intermediary in your area. This trained professional will be able to walk you through the process, provide access to a variety of databases that have screened businesses for sale, keep the process flowing and cover all bases from the initial interest to the closing table.
Since you are starting to build a new economic future, you can never have too much information.