Good Information Articles

5 Things You Must Do Well When Buying a Business to Not Get Burned

Are you not sure what Business to buy? Need to know what is a fair deal?

Martin Smith thought he was buying an established business with good credit and collectable accounts receivable. The day after settlement the surprises began.

Inventory could not be used because expiration dates had past. Money shown as receivable had already been collected. Vendors that were only willing to ship COD. Over $100,000 of real problems that should have been detected during the business purchase process popped up and almost shut Martin down.

Can you afford to be surprised? Of course not.

You have the power to not end up like Martin.

Owning your own business is part of the American Dream. Buying a business has many advantages over starting one from scratch if you know how. Be prepared and get all the benefits of buying an existing business.

Tangible benefits such as existing cash flow, existing customer base, existing systems, knowledgeable employees, and locations can be obtained cheaper by buying an existing business than starting from scratch.

1. Understand and Know What You do Well and Like

You must really look at the activities you like to do and find a business that allows you to do them. For instance some people want customers to come to them. A retail store may work well for them. On the other hand some owners would loose their minds staying in a store all day; perhaps something with outside sales will work for them.

Are you a people person, a thinker, a leader, or a salesperson? Do you like steady hours, flexibility etc. How much money do you have to purchase with? How much money must you make every week?

Remember the process of buying the business is not the same as running one. Do everything possible to make sure you buy one you will love running.

2. Make a Comprehensive Search for a Business

Make sure you know how to look for a business. Don't just go to one source but really check multiple reliable sources to find the business that is right for you.

Systematize your notes so you know what you looked at. Make sure you compare your strengths and weaknesses with the day-to-day tasks of running the business.

3. Understand and Value the Business Properly

Understand the basic financial techniques to value a business; it's cash flow and other assets. Know how to prepare a basic business plan in order to make projections into the future.

Understand how the business is getting its customers. Know how it delivers goods and services. Know the cash flow and how you will keep the current cash flow and then grow the cash flow.

4. Know how to structure and finance a business

Have a basic understanding of how the business valuation and related cash flow tie together. Make sure you know a number of possible ways to put a transaction together to overcome different risks.

Understand what may be financed by a conventional bank loan, a SBA loan or seller take-back. Understand how to take your outline deal and put it into a final enforceable contract.

5. Perform Due Diligence Thoroughly and Correctly

Know what to look for when investigating a company. Know how to tie accounting records into source documents. Understand inventory, equipment, vehicle titling and other problems. Understand what should occur at settlement. Make sure you are getting what you have agreed to pay for.

Bonus Tip

Recognize that the Broker almost always represents the Seller. For most small business purchases you, the buyer, will go through most of the process on your own. Make sure you know enough to get select the right business and negotiate a fair deal.

Gregory R. Caruso is an expert at helping business owners plan and execute the sale of their businesses. Greg is an inactive CPA, attorney, and business owner with 20 years experience. He can be reached at www.successfulexits.com.

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

MORE ARTICLES:

Kiplinger.com Launches Business Travel Center: "Best in Business Travel" Site Offers Tips, Tricks, and Market Inf
Kiplinger.com (www.Kiplinger.com), the leader in personal finance advice and business forecasting, announces the launch of its new Business Travel Center (http://kiplinger.com/business/travel/). The online center serves as a guide for businesses and their employees to make the most of their travel dollars using resources from Kiplinger.com and Kiplinger's Personal Finance Magazine.

Developing Multiple Streams of Income for Your Home-Based Business
Many home-based business owners have a single service or product they provide. They may sell e-books or crafts or speech-writing services.

MADAI Shows us how to 'Shake It' as UNO MUSIC 'Breaks it' Worldwide on the Radio, in the Clubs and on the Internet
Alluring, spontaneous and talented, 17-year-old Madai (pronounced mah-dye), an artist who's grown up in the digital era, debuts her single titled "Shake It", a seductive, rhythmic anthem with hip-hop, Latin and pop appeal, produced by none other than Dave Siegel, the multi-platinum studio wizard who's worked with Beyoncé, Pink, Christina Aguilera and Britney Spears.

Celebrate Health Awareness Week by Maximizing Your HSA
Understanding and using the health savings account.

Is An Adverse Credit Record Bad For Your Health?
An adverse credit record usually comes about as a result of being unable to properly manage previous credit agreements. These can incorporate loans, credit and store cards and other hire purchase agreements. Quite often, people who find themselves with an adverse credit record are there through no fault of their own. They may have been ill or had an accident that has forced them to take time off work which has reduced their income or they may have lost their job. The result being their income levels suddenly become drastically reduced which can affect their ability to meet all their financial obligations.

Cute Ways To Announce To Your Family And Friends That You're Pregnant
No matter how you spin it, telling your close friends and family that you are pregnant is going to be a memorable and happy occasion. Of course you can just come out and tell them but since this may be a once in a lifetime experience why not make a little effort to make it even more fun and memorable? Below are a list of creative ways to announce to your family and friends that you are pregnant.

7 Family Traditions to Bring Your Family Closer
The responsibility of being a parent is the most challenging job any human can undergo. Webster's dictionary defines a parent as "one that begets or brings forth offspring, a person who brings up and cares for another," but it is so much more.

Bravo Tv's 'Make Me A Supermodel' Aryn Livingston Comes Home
Aryn Livingston of Marion Model & Talent Agency in Carrollton, Georgia, comes home after being voted off of Bravo Tv's "Make Me a Supermodel". "Aryn is doing great!" says owNer, Marion Webb. "She is already a supermodel"!

Do You Own Your Business Or Does It Own You?
What was your aim when you went into business for yourself? Chances are you wanted to be your own boss, be in control of your future, improve your chances of earning a high income, among other things.How are things for you right now? Do you feel in control of your business? How many hours do you put into your business each day? Each week? Will your current business enable you to retire in the next 10, 20 years?Do you sometimes feel overwhelmed by all the administrative tasks involved in running a business? Do you wish life could be simpler?More importantly, if you don't work, does your cash continue to flow (inwards, that is)?You see, if you can't take a vacation for fear that you won't make any money while you're away, or if your busin...

Fairs, Festivals, and Amusement Park Safety - How to Keep Your Child Safe from Strangers this Summer
Parents, you know there is always an increased anxiety and stress when going on family outings and when the safety and security of your family is on your mind. Not sure where to start? Take a few minutes with a family safety plan by following some of these easy steps so it's not just the kids having all the fun.

The Best Business And Economy Solutions
In todays Business and economy, starting any business service requires a good business plan. A little money wouldn't hurt either.

Faith Like a Child
Jonathan:¡§This is my brother, Jonathan¡¨. They walked into the room together, one limping as he walked, the other patiently walking by his side.

Bringing Shade And Shades Into Your Home
So you want to make your home look even better than it already does. However, you want to make this a simple change and as effective as possible. The best way to this is to look out your window. Look out the window, and then look at the window and decide what it is that you can do to make this part of the room brighter and more of a focal point as opposed to something that is just there. There are many ways that you can do this to make the room brighter and to do this throughout the entire house so as to make updates and improve the interior design. Think about the fact that you can do this with simple window treatments. These could be anything from vertical blinds, shades or a simple valence for decoration. There are many options for all o...

'Project IVR Unleashed' by Datatel - Helps Business Prepare for a Successful IVR Strategy Execution
"Project IVR Unleashed" is collaborative resource dedicated to educating business leaders about the best utilization of IVR (Interactive Voice Response) as part of their business operations strategy.