Business Planning

Continuing my series on buying a business, here are summaries of four critical factors to consider when acquiring a small business.  

Old sellers are the best sellers 

One of the best opportunities to acquire an existing business is when you can buy one from an owner who wants to retire from a business that’s still viable. Two good reasons are: They’re less likely to change their mind before the transaction is complete, and they’re more likely to finance a larger part of the sale price to get monthly income. 

Notice I said, “still viable.” Sometimes the end of the current owner’s career coincides with the end of the life of the business. Don’t buy a business that should retire with its owner.

[Continue Reading]

Recently I wrote an article on how to “Buy Your American Dream” by buying a business from someone else. Let’s continue that theme with a few more principles to employ when considering this ownership option. Thanks to my friend, Russell Brown, and his book, “Laws of the Business Buying and Selling Jungle” for the inspiration.

Buyer beware – of himself.

In the securities industry, full disclosure is the coin of the realm. But in the marketplace, caveat emptor – let the buyer beware – is the fair warning standard.  If a seller misleads or misrepresents something, legal redress may be available. But business purchases that don’t work out are born more from inept buyers than from seller malfeasance. 

[Continue Reading]