When you buy a business be sure to consider the following thoughts which reflect the experience of those who gone through the process.
1. Often, change of ownership affects the customer base. Look carefully at the customer list and discuss the loyalty of those customers to a possible new owner.
2. Even if you have a great deal of experience running a business, don't hesitate to consult outside experts when you have a doubt.
3. Discuss a transition plan with the seller and don't make earth shaking changes in the operation of the business right away. Employees can be a great help in transition, but turning them upside down and enforcing new rules may back fire when done to quickly.
4. Buyers get to personally involved in various commitments the company may make. Remember you should use the proper legal structure to operate your company. If you are a President and you sign something, make sure you use your title.
5. Regardless, of your position in the market, you must create an "economic niche" You want people to remember your company for something no one else does.
6. No matter how good the fit is for you personally, never let emotion dictate your pocketbook when buying a business.
7. Many sellers will try to convince you that the potential is where the value of the business lies. Base the value of the business on prior performance and how you will manage the business in the future.
1. Often, change of ownership affects the customer base. Look carefully at the customer list and discuss the loyalty of those customers to a possible new owner.
2. Even if you have a great deal of experience running a business, don't hesitate to consult outside experts when you have a doubt.
3. Discuss a transition plan with the seller and don't make earth shaking changes in the operation of the business right away. Employees can be a great help in transition, but turning them upside down and enforcing new rules may back fire when done to quickly.
4. Buyers get to personally involved in various commitments the company may make. Remember you should use the proper legal structure to operate your company. If you are a President and you sign something, make sure you use your title.
5. Regardless, of your position in the market, you must create an "economic niche" You want people to remember your company for something no one else does.
6. No matter how good the fit is for you personally, never let emotion dictate your pocketbook when buying a business.
7. Many sellers will try to convince you that the potential is where the value of the business lies. Base the value of the business on prior performance and how you will manage the business in the future.
