If you’ve always dreamed of running your own store, but don’t know where to begin, buying an existing business may be the perfect solution for you. Purchasing a turn-key business means everything is already in place and you can focus on running the store. And, if you’re up for it, you can also implement new ideas, processes and revenue streams to help the business reach its full potential.
If you want to know how to buy a business, you’ve come to the right place. Keep reading to learn:
Get the funding you need to buy a business
Entrepreneurship isn’t cheap. Read this free guide for easy to follow advice on raising the funding you need to start up.
Buying an existing business vs. starting a new one
Starting a small business from scratch and buying an existing local business are different paths to entrepreneurship. Which one is right for you? These pros and cons will help you gain some clarity.
Pros of buying an existing business
Cons of buying an existing business
Pros of starting a new business
Cons of starting a new business
General considerations
While it may be easier to take over an existing business than to create one from scratch, running a business is hard work. When you commit to an idea that you’re passionate about, it’ll be easier to face challenges that arise over the years.
It’s important to note, however, that neither opening your own store nor buying an existing one is a get-rich-quick tactic. Both options usually come with slim margins due to the overhead involved in paying for and staffing a brick-and-mortar space.
Want to ensure your business is a cash cow? Check out our guide to the most profitable small business ideas.
How to find businesses for sale
If you want to know how to buy a business, you need to know where to find businesses for sale. Here are a few tried-and-true methods:
Evaluation checklist for buying an existing business
A business broker can help you properly evaluate a business before you buy it. If you’re on your own, make sure to carefully consider the following things:
How to raise funds to purchase a business
There are a number of ways to obtain the funds you need to buy a business, including:
Formal steps to buy a business
After you’ve found a business you’ve decided to purchase, you’ll need to complete and collect the following paperwork to finalize the sale:
It should go without saying, but before entering into any kind of formal business agreement, be sure to have legal consul review all documents. It’s also advisable to have an accountant or other financial expert review the business’ financial performance to ensure you fully understand the health of the business.
Wrapping up: How to buy a business
Buying an existing business is one of the many paths to becoming an entrepreneur. If you’ve always dreamed of running a store but are more interested in the day-to-day operations than with coming up with a concept, buying a local business may be right for you.
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This content was originally published here.
