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When starting a business, don’t forget you have a option to buy a business.

Buying a business can be a profitable and a faster return on invest than starting from the ground-up.

1.When buying a business, always approach with a positive mind-set and look for opportunities.

For example

1. Are the current business owners maximizing all opportunities in the market place?
2. What’s the true value of the business vs the value of the assets?
3. Are they spending marketing dollars in the right area?
4. Are the employees well trained?
5. Does the business owner have a database of leads and customers? If so, What is the size of the database?
6. What’s the monthly revenue vs positive cash flow?
7. What major upgrades need to made in the business? New software, equipment, training, etc.
8. Does the business have any valuable assets that they are no longer using but can be sold fro cash?
9. Look for missed opportunities and undervalued assets.
10. Look at the financials. Is the bookkeeping up to date and are transactions properly recorded.
11. Review prior year tax returns.

These are just a few things to consider.

2. Business owners will exit a business for a variety of reasons.

1. Health challenges.
2. Family challenges – divorce, need to spend more times with their kids.
3. Relocation – A spouse may take new position.
4. Retirement or mind set change – sometimes people want to just do something new and lose their drive to be a entrepreneur.

Buying a business can be a good opportunity for you to expand your business. You can buy a business,  re-brand it, and expand your market reach.

When buying a business always consult with a professional (attorney, bookkeeper, CPA, industry consultant, etc.) There are many other things to consider but don’t be afraid to explore the possibilities.