Are You Considering Buying a Business?

Going into business for yourself is a big step, one that can be full of
apprehension and even fear. Almost 90% of all those who purchase a
small business opportunity have never owned a business.  Owning
your own business can give you the rewards we all work to have;
independent business ownership, financial security, and a respected
professional standing in your business community.

"Destiny is not a matter of chance. It is a matter of choice: it is not to
be waited for, it is a thing to be achieved."
                                                      William Jennings Bryant

What Buyer Questions to ask

Business Longevity
A business with a good track record means that it has been successful.
It will be well known in it's community, and it will have a good clientele
base; "good will". The longer it has been in business, generally, the
better the business.

Why is the Owner Selling?
There are valid reasons for selling, keep in mind that people do get
"burnt out", they want to go into a new opportunity, retire or any of the
other myriad reasons people sell.

What is the Financial History?
The financial records are a good indication of how well the business
has been doing. Tax records are not designed to show the business in
its best light. Look at expenses and pull out the discretionary expenses;
depreciation, manager salaries, insurance premiums and payments on
personally used vehicles, any home based expenses etc. BIS Brokers
has business analysis reports on our businesses for sale to show you
how these items affect the businesses profitability.

Buyers want to know the asking price first, we feel the first question
asked should be how much income is the business producing. How
much is the down payment, what terms are available, what is the cash
flow, what is the location, are all questions we anticipate and have the
answers for. The actual amount that the business earns is usually more
than the bottom line. Gather more information, visit the business and
then the owner, get the cash flow numbers before ruling it out or making
your decision to buy.

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Buyer
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