It’s Business, And It’s Personal

Advice for those thinking of buying a small business

On Behalf of | Nov 21, 2016 | Buying & Selling Businesses |

In many ways, buying an established and proven small business is better and easier than trying to launch a brand new startup. Budding entrepreneurs who are thinking about purchasing and operating an existing enterprise may take advantage of the fact that many baby boomer business owners are expected to retire in the near future.

Prior to taking over a small company, a person should be sure that they truly want to own and operate the business. Taking time to research the available options and selecting the business that matches one’s talents and experience is important. Attending trade shows and speaking with potential customers as well as researching the company’s competitors may also help to confirm if the particular business opportunity will be successful or not.

The next step is finding the desired small business that is for sale. Oftentimes, small business opportunities are advertised at in-person auctions and online business marketplaces. Advisors, business brokers, lawyers, accountants and various business contacts may also have knowledge of small business owners who are looking for buyers.

Before making a purchasing, entrepreneurs should know every aspect of the business’ operation. This includes doing a thorough review of the business records to ensure that the business is free from litigation, liens, insurance disputes or tax audits.

Whether a person decides to purchase an established business or start one up from scratch, they will face many challenges. Besides working hard to achieve success, the business owner will have to transfer or obtain new business licenses, obtain an employee identification number, select the proper business entity and create a business plan. Such entrepreneurs might want to speak with an attorney experienced in buying and selling businesses.