Business Buying Tips

When buying a business, there are the usual questions to ask - why are you selling, can I see the financials, what are your margins but many overlook some key components to Buying a Business. We’ve compiled a short list of 5 buying TIPS which we highly recommend you do when buying a business...

1. Look beyond the location of the business. Were you able to park at a convenient distance from the business? Was the parking lot full? Would you safe at night in that area? Take a moment to think about how your customers / clients would feel about visiting you at the location you are considering purchasing. Just as importantly, are potential clients walking past the front door of the business?
2. Google! If you are purchasing an existing company and it’s website - Google the company name because you can bet your clients will. This is particularly important when buying a restaurant due to the ratings and customer comments the restaurant will get on sites such as Urbanspoon.
3. Do your homework. Donald Trump wrote in one of this books that 90% of an investment should be research, 10% is the action of investment.
4. Ask about the Staff! I could write a book about this topic but it can be summarized very briefly - “Bad Staff will destroy your Business!”. When buying a business review each of the staff and there contribution to the company. If the owner is eluding to the fact that there is an individual troublemaker or two try to understand the reasons why they feel this way. If it is clear there is a problem then you should ask the seller to terminate that individual PRIOR to the sale of the business.
5. Dress and Behave appropriately! There are exceptions but you will likely be meeting an owner who is VERY attached and passionate about their business. The business is their baby. Typically they want to see the business handed over to a like minded person; someone they feel will take the business to the next level. Do not underestimate this. Although not common, I have seen sellers accept a lower $ offer for their business because they preferred that buyer over the other buyer who was offering more money!