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.