Business Buyers: Top Tips For Finding & Buying A Small Business
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Before selecting a business broker, a business buyer can save their future intermediary a lot of time by deciding whether they are looking for a full-time job out of owning their new business, or if they would prefer to work part time or expect some level of absentee ownership. They must also decide what industry they would like to work in, and if that is realistic based on their experience and skill set.
Additionally, it would be helpful to know where they want their business to be located and how far they would have to commute, as well as how much money they are looking to spend and earn as income.
Industry, income, location, and ownership are some of the most important factors for business buyers, and most potential business buyers ultimately never buy a business because they have a very clear picture of what they want their business to be and won't budge on any number of these factors.
It is not uncommon for buyers to get cold feet during the due diligence process if the business is not exactly what they were looking for, using any reason to walk away and wait for the perfect business. The problem with this is that the "perfect" business does not exist, and waiting for that non-existent business will only strain your relationship with your business broker.
Buyers can save themselves and their brokers this time and trouble by being up front and honest with their intermediary and telling them exactly what they are looking for from the beginning. It is okay to have expectations about what you want your future business to have, but effectively communicating that with your broker and telling them why their recommended business options don't line up with your proposed criteria will help them refine their search and have more luck guiding you to the business you are seeking.
Communication is key, and understanding what is available and what you are looking for will lead to a more effective process.