Buying An Existing Business Part II of IX

Before you begin looking for a business, ask yourself these two important questions:
"What can I bring to a business?"
"What do I want to get back?"

Time spent now answering these two questions will save you time and money later.

QUALIFICATIONS

Most buyers purchase a business because they have a skill which they hope to turn into an income. In most of cases, however the buyer will have little or no prior business experience.

My advise is don't consider a businesses you have no understanding of. The business you purchase needs to fit your personal skills and lifestyle.

There are several factors contributing to a buyer's qualifications to own and operate a business. These include the following:

Education
Experience
Special Training
Experience In The Type Of Business Being Purchased
Self-Motivated
Responsible
Energetic
Independent
Realistically Confident
Willing To Risk
Accomplishments
Health
Commitment
Business Management

I suggest you write down your response to each item on this list. You should get into and keep the habit if writing things down.

Successful experience in the type of business being purchased is perhaps the most important because it helps the buyer solve problems peculiar to the business and the knowledge of how to best solve them.

Below is a brief Attitude Questionnaire. (Please answer the questions as truthfully as possible. Mark them using a scale of 1 to 10, 1=never, 10=always.)

1. I arrive at meetings and social events on time.
2. I follow up when I say I will do something.
3. I make an effort to fix mistakes that I make.
4. I double-check my work before I declare it finished.
5. I am a self-starter.
6. I am willing to put in the effort and energy it takes to start a business.
7. I do not get overwhelmed when there are several things that need my attention.
8. I am willing to educate myself in order to learn any necessary skills.
9. I am willing to work hard and smart.
10.I know how to prioritize my work and my life or am willing to learn.

PREPARATION

Successful business buyers know that in order to get a great deal, they have to impress the seller with their preparation.

Below are the two documents that are a must if you want to impress a seller and get their attention:

Your Financial Statement
and Your Resume

When you find the business you want you will be asking for financial details of the business ans also requesting some sensitive information regarding the operation of the company. If you are prepared to hand over to the seller Your Financial Statement and You Resume you will find the seller much more receptive to your request.

Also, before you start looking for your business there are, at a minimum, the following questions to consider:

What will the Business Structure be? You should think about whether your company will be a sole proprietorship, partnership or corporation.

Where do I plan to Locate the Business? You should give some thought as to whether you are going to work out of your home or rent space.

Will I be needing Employees? Will need to hire employees or will I keep the present employees?

How do I plan to Finance the purchase? More on this subject in a later article.

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