Blog for Business Buyers and Sellers

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 Businesses FSBO directory may help you determine the best formula for valuing and selling your business. 

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. 

It is with this thought in mind that I started looking at a Businesses for Sale by Owner directory on line the other day.  It was then that I realized that the best way to get started is to buy an existing business.  Rather than the headaches involved in starting from square one, it is much easier to buy a healthy business from someone who has already gone through the “start-up” stage. 

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.

Over the past 18 months, a grueling recession and record-setting unemployment have caused millions of Americans to rethink their career paths.  Gone are the days when one can expect to stay at the same company for an entire career.  Job security seems to be a thing of the past, and even retirement seems far out of reach.  Worse yet, as the size of the workforce dwindles, employers are expecting more from those who remain employed.  Frustrated and angry American workers are beginning to wonder if remaining an “employee” is really worth the sacrifice. 

In many states, commercial leases are not covered under consumer protection laws that normally safeguard tenant rights. It is assumed that commercial leases are contracts between knowledgeable business people, and therefore less government regulation is needed than in residential leases. Thus it is essential to scrutinize every aspect of the lease and renegotiate unfavorable terms before signing.

A majority of the small businesses in the United States are operated as sole proprietorships. This type of business organization is the simplest and is the form usually chosen by the one-person business, in which the owner and worker are the same person (although sole proprietorships can have employees). Its primary advantage is its ease of formation; its most important disadvantages are (1) it can have only one owner and (2) the owner is individually responsible for all losses of the
business.