If you are keen to work for yourself but do not have the time to start from scratch with a start-up operation, you could consider purchasing a small business outright. With everything set up and all ready to go, this could be a way to get into business in a relatively quick time.
However, when it comes to looking for the best small business, it pays to be cautious and consider a few concepts beforehand:
Find Out the Real Reason Behind the Sale
Try not to just take the sellers word for their reason for letting the business go. While many people do sell their businesses due to illness and retirement, for example, there could also be other calculated reasons behind their choice including a more prominent and similar company moving to the area and dispelling the need for this one.
Find Out Exactly What You Will Get for Your Money
Make sure you know what assets you would be getting with the purchase. Most will have an accompanying list of the assets involved in the sale alongside their estimated value. Make sure you are clear here and ensure there are no debts attached to such assets for future reference. Pay close attention to goodwill as several sellers often inflate this value at this stage.
Have a Check of The Business Records
Always check the businesses past financial performance, examining the last three years’ worth of financial statements, and use these to study the company’s past operating performance.
Request A Test Run
Finally, it might be worth finding out if you could sit in on the business for a couple of days. Though this may not always be possible, if allowed it could give you access to the day to day processes, thus allowing you to see how it operates before you make that final decision.