Buying A Business

Buyer Information

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 its 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 "burn out", they want to go into a new opportunity, retirement, moving or any of the other myriad reasons people sell.

What is the Financial History?
The financial records are a good indication of how the business has been doing. Tax records are not designed to show the business in the best light. Look at expenses and pull out the discretionary expenses; depreciation, manager salaries, owners’ insurance premiums, interest, personal items, non-recurring or one-time expenses. BIS brokers have a business analysis report on our businesses for sale to show how these expenses affect the businesses cash flow and profitability.

Buyers want to know the asking price first; we feel the first question asked should be how much income the business is producing. How much is the down payment, what terms and conditions 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 businesses and ask the business owner to prove the cash flow numbers before making your decision to buy.