This article are provided for information purposes only, and are not intended as legal advice.


Buy a small business

April 7th, 2009

The economy is changing, you have just been downsized and now you are looking for a source of income.  You have some cash from your settlement which you can live on but it will eventually run out or you can use your settlement  to buy a small business.  You are impatient and you want to buy it today and not have to wait. 

 

Most people have no idea of the type of businesses which exist and what is available for sale.  You have a choice, you can sit and wait until people bring you things to look at or you can be active and be very proactive in your search.  Not only do you have to find a business, you need to find the right business for you!  First, decide on what you do not want to do and what industries you do not want to get into.  By eliminating what you do not want to look at is easier than deciding on what you want to do.  Prepare a list of your strengths and weaknesses.  Do you want to be able to be on your own or do you need a mentor?  If you need help all the time, maybe looking to buy a franchise is an option. 

 

If buying a franchise is not an option, then you need to look for businesses for sale.  Keep monitoring The Business Place daily, every day more listings are being posted.  Many sellers of businesses may be deciding whether to sell or not.  Be proactive, instead of waiting for the seller to post a business for sale, post your wish list on the investor side of the website.  If a vendor is thinking of selling their business and finds a willing buyer, they may be motivated to contact you.  You may not know exactly what you want but if you put in a description of the types of businesses that you want, retail, distribution, wholesale, manufacturing, etc., identify your strengths and list them so that a potential seller can see if you would be a suitable buyer.  By registering as an investor (your name is not displayed on the website as long as you do not put your contact information in the description of what you are looking for) you are looking for a business that may be up for sale or one which is just registered for sale. 

 

Many people are not maximizing the use of the website.  When you post a business for sale, if you provide a two line explanation saying business for sale, what did you write that will motivate someone to contact you?  Listings which have very long explanations of the business for sale are getting lots of emails from prospective buyers.  Your listings should be an opportunity for getting someone to want to call you.  If you provide them an good understanding of the business, the likelihood of a qualified buyer improves because you are no longer getting those that are tire kickers.  Every business is different and the amount of information that you can provide for each business is different.  All I want to remind you is that there is a correlation between the amount of description of the business and the number of responses that you receive.


Filed under: Buy a business — Gary Landa @ 10:40 am


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