Written by Bizsale Staff Saturday, 17 July 2010 11:31
If you have always wanted to be an entrepreneur, there has never been a better time to buy an existing business. Just one look at a “Businesses for Sale by Owner” directory and you will see how many businesses are available at rock-bottom prices. But don’t be too quick to make a decision. Often there is a good reason why the current business owner is selling. Perhaps they didn’t have enough working capital, or they failed to recognize key industry trends in time to stay ahead of the competition.
Remember the old adage: “Business owners never plan to fail; they simply fail to plan”? If you are looking at buying an existing business as an investment, chances are you will need to come up with a better business plan than the previous owner had; one that positions the business for short and long term growth.
Whether you have written dozens of business plans before, or if this is your first one, avoid these common mistakes:
1) Procrastination: Too many business owners only write a plan for their business when they are forced to do so by a financial institution. Don’t put off writing a business plan. As a business owner, you will always be “too busy” to do it.
2) Misunderstanding cash flow: Being too casual about cash flow can quickly cause a business to become insolvent. Use a cash flow table regularly and do your best to understand your cash flow thoroughly.
3) Adopting a “one size fits all” mentality: Your business plan should reflect your unique ideas for the new business, so resist the temptation to copy the ideas you find in other business plans. Include action plans, marketing plans, financial plans, and anything else that will help you run the business better.
4) Dreading the plan: Creating a business plan is never as hard as you think it will be. You can find the help you need from small business development centers, how-to books, software programs and mentors. Remember, when you buy an existing business, the plan is there to guide you and make you more successful.
You will find a lot of advice about creating a business plan online in a Business FSBO Directory, where business buyers and sellers come to exchange ideas, opportunities and advice.
Are you thinking about selling your business, but maybe you are hesitant to do so because you’re afraid it will be undervalued by potential buyers? Despite the economic realities, and the fact that it is still a buyer’s market out there, there are a few important techniques to ensure you get a good price for your business. Some of the most common reasons that business buyers feel empowered these days are that so many selling companies are presenting weaker financials, and there is a lack of confidence in the economic recovery. Plus, there is a lack of available capital for business buyers, so they are looking for the best deal possible. However, businesses for sale that are performing well can still fetch a decent price. 
So, you’ve been thinking about starting and operating a profitable small business. Owning a small business can be one of the most intellectually stimulating and rewarding pursuits in your life, and it can also allow you the flexibility and financial freedom to live life to its fullest. However, the process of finding and purchasing a small business can be somewhat complicated.
Most people who are considering buying an existing business will search the businesses for sale listings first. After all, the allure of instant cash flow, an established brand, and an existing customer base sounds like a lot more fun than starting a business from scratch. Established businesses are usually a much more attractive option for first-time entrepreneurs, but buyers need to learn how to analyze and evaluate buying an existing business before signing the dotted line.
Buying a business isn’t quite the same as buying a house, a car, or a piece of furniture. With physical commodities, it is much easier to see what you’re getting. Businesses tend to hide their flaws well and flaunt their best features, so to speak, and you will want to find out as much as possible about their financials, but these questions will provide important insight about the quality of the opportunity itself.
Corporate downsizing and shrinking salaries have made owning a business more tempting a proposition than ever. But as more and more prospective business owners embark on the process of buying a business, they share a common concern – business purchase financing. The credit crunch has made traditional borrowing nearly impossible, which can make business ownership impossible for many people.
Entrepreneurs may be relentless in their pursuit of the American dream, but at some point in life it may be time to move onto another venture. Whether you own a small service-oriented business or a multi-location retail operation, putting your business up for sale can be a very stressful time. The most commonly asked questions by those selling their business are about how to determine a value for the business, factoring in your bottom line. Researching similar businesses in our free online 
Starting a business in this economy is enough to give most people an ulcer, especially if it is a complete start-up. Of course, that all depends on what type of business you’re in, but most agree it is better to wait until things improve. 
With a questionable job market and diminished income becoming a reality for many workers, the idea of starting a business is becoming more and more favorable. However, starting a business can still be risky. Before you start searching for businesses for sale, consider a few money saving tips.