Once a particular business appeals to you, it becomes imperative to acquire certain details about that business opportunity.  Therefore, ensure you conduct extensive research and seek vital information before devoting your time and resources or any focused attention on any one business opportunity.  A sampling of some of the information to obtain includes:

In addition to determining the business location, asking price, gross revenues and available cash flow,  determine the value of Furniture, Fixtures & Equipment and inventory  and whether they are included in the asking price. Determine whether seller financing is available and the likely amount of the required down payment.  Other relevant information to consider includes: (1)   the year the business was established, the number of employees and the monthly payroll, (2) whether the business is relocatable, (3) the nature and extent of seller training and support, (4) the seller’s reason for selling, (5) the condition of the business facilities, (6) the market outlook and level of competition, (7) growth and expansion possibilities, (8) the lease terms available to you as the buyer.

After reviewing detailed information, if you wish to continue pursuing a particular business opportunity, then utilize the services of a competent business broker to represent you as your exclusive agent. Most reputable business brokers representing the seller will cooperate and “share” their commission with the business broker representing the buyer.  Accordingly, the buyer can often obtain “free representation” through the Broker Cooperation arrangement.  Following this methodology will ensure that you acquire a business that represents a valued investment.

To learn more, visit us at www.QBSNet.com

This entry was posted on Monday, March 17th, 2008 at 1:21 am and is filed under Buying a business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.