10 July 2018

A Guide On Finding A Business For Sale

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Most of us dream of running our own business at some point. There is so much pride in hiring your own staff, getting to set your own schedule, and pursuing something that you love. Unfortunately, the whole process of building your own business from scratch can be challenging. However, don’t have to go through all that to own a business.

A business owner may get to a point and decide that they no longer want to keep running their business. They will then list the business for sale. You will get the entire businesses’ operations, their customers as well as the staff (although this is optional). Not all of these businesses are advertised. This means that you will have to do some more digging to find a business that you can invest in.

Where to find a business for sale

  1. Do an online search
There are many websites that have lists of businesses that are for sale within the United States. If you are looking for a business in a specific area, you can start by searching by that location. For example, if you live in Miami, you can begin by searching for businesses for sale in Miami and then narrow down your choices from there. These sites do not charge any fee when you conduct a search.
These sites contain enough information about the listings. Gather as much information as you can about your business of interest. For example, find out the businesses’ cash flow, inventory, gross revenue, and value.
Identify the best site and use it to search for businesses; you can search different categories under location, industry, and price range. If you did not find the business that matches your criteria, you can set up email alerts that will notify you when a business that fits your specifications is listed.
  1. Contact Business Owners
Identify some potential businesses in your preferred industry. Approach the owners and find out if they are willing to sell. If you do not have any leads, you can visit or call random businesses, introduce yourself, and proceed from there.
You can get leads from lawyers, accountants and from your network, so check to see if they know anyone who wants to sell. You can also find listings in local newspapers or journals; these publications can also be found online.
If the owner had not advertised their business, they will most likely want to know how you found out about their desire to sell. Tell them how you found out about their intentions to sell. You should also be ready to tell them about your prior business experience and draw up a potential business plan to show that you are serious.
  1. Hire a Broker
A good broker will save you a lot of time and money. The brokers do all the work, from identifying an appropriate business for sale, negotiating the price with the owner, and handling the large amount of paperwork. They have their own pre-vetted listings that have a wide range of businesses depending on size, industry, and location.
How to find a business broker …
       Ask the locals for a recommendation
       You and get a referral from your local chamber of commerce
       Check online directories for brokers who are registered by the International Business Broker’s Association
Once you find a reputable broker, check how much they will charge for their services and for consultation. Find out how and when they would like to get paid. Usually, they get paid a commission; clarify the percentage before moving forward with them.
Schedule a meeting with them and use that opportunity to ask them questions about their experience, if they hold any accreditation, how long they have been in the business (the longer the better), and what associations they belong to.

What to Look for in a Sale Ad

Here is a list of the elements you should consider when investigating business for sale ads:
        The size. Find out how many employees work for the business, the number of branches, and its revenue.
        The location. Consider the specific area in which the business is located. The cost of doing business and the cost of labor varies from one place to another.
        The industry. This is the most important factor to consider. Find out exactly what the business does to see if you will be comfortable managing it.

There are numerous businesses that are for sale, so it is highly unlikely that you will fail to find one that meets your general criteria. You can find a business that is for sale in different ways including websites, newspapers, and through brokers.

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