So you have officially decided you would like to buy a business! But what should you do next to prepare yourself for the process? In the following article, we have identified a number of topics to consider when beginning the process of purchasing a business, so you can best prepare yourself to start your entrepreneurship journey.
Strong Suits. Now is as good a time as any to review your professional experience and pinpoint your main strong suits. Are you great at managing a team of people or do you do better work solo? Have you had a lot of experience managing a restaurant and do you enjoy that type of lifestyle? Do you prefer creative work over, technical work? Beginning with some introspection is a great way to begin to narrow down the kinds of businesses you would do well owning. Someone who has no experience managing a large team may be better off purchasing an owner/operator business over a large scale manufacturing company that employs 30 or so people.
Financing. Another important item to spend some time thinking about is how you plan to finance the acquisition. Have you decided on a price range you are comfortable with? Do you plan to pay cash for the business or will you need external financing? There are a number of great options to finance the purchase of a business from SBA loans to seller financing. If you are unsure of where to start, we highly recommend discussing this topic with your broker and they will easily be able to point you in the right direction as far as price range and financing resources.
Speak with a Broker. Once you have started to hone in on the types of business you are interested in and your plans for financing, it is the perfect time to contact an experienced business broker. A broker will be able to connect you with businesses that fit your goals and are well suited to the lifestyle you are looking for. They also have access to a number of listings that have yet to reach the market, providing you with exclusive opportunities! In addition to access to listings, a broker has a large network of resources from finance professionals, to transactional attorneys and everything in between to help facilitate the acquisition. Finally, your broker will be able to get you to the closing table, given their high level of deal experience.
Buying a business can be confusing and complex, but it does not have to be with the proper preparation and a good broker on your side! For more information on buying a business, we invite you to schedule a complimentary consultation with one of our brokers today!
Rachael Holstein joined the Transworld Team in 2016 as Marketing Coordinator. Her working experience has been largely focused on Business Development and Marketing in the finance, architecture, property management, and information technology industries. A longtime resident of Cleveland, Ohio, she attained her Undergrad from John Carroll University and a Master's Degree in Global Interactions from Cleveland State University. She relocated to Denver in 2013 for a change of scenery and a bit of adventure.