How to Buy a Good Business for a Great Pric

What to consider when buying a business.

All of the personal, professional and family considerations that must be factored into your decision will be reviewed in this section.

You should buy a business because you want something better than what you are currently doing. Most people spend their entire life making a living and never make a dime.

There is no better investment than owning a business. Not stocks, not bonds, not even owning a home. From a financial and lifestyle perspective, owning your own business can be beneficial.

You will learn in this section.

Explain your reasons for buying. Business ownership is the fastest route to wealth. How to form the right attitude to buy will set your head straight for this project. Buying a job is not the right approach. Future lifestyle business ownership will come if you learn to buy benefits. There is a discussion of the financial rewards. The challenges to consider are controlling your own destiny. How to attack a potential business purchase. Financial considerations must be made. To make a purchase, you need to know the 12 things you must do today. There is no such thing as a secure job unless you own the company. The risks you may face have been prepared by your past professional career. What are the downside possibilities? If you have never been in business before, how to overcome obstacles. Any lack of experience will be overcome by the three-step system. Understand the objections and situations you will face with family members and how to include them. If this process is new to you, you need the attitude you need. Decide if you are window-shopping or committed to buying. Their looks paralyzes them to make any decisions. Buying an existing business gives you the best chance of success. Business ownership has tax benefits. There are pros and cons to looking for something specific. How long will it take to buy a business? There is no such thing. We will explain why. Ready! Aim, Aim! Learn how you can avoid the fate of others who can’t make that final leap. Prepare and complete your Personal Financial Statement.

There are ten commands.

Is this a good business is the most important factor to consider when buying. There are ten rules that cannot be broken. You have to subscribe to all the businesses that you buy.

Commandment # 2 is to buy a good business and make it great. Buying a cheap business is like buying a bad used car. With little or no time left for building the business, you will spend all of your time trying to patch leaks. Through your talents, a good business can grow and flourish. Start with a strong foundation and build from there.

You will learn in this section.

Pay for the past, consider the present, but buy it for the future.

The purchase price can be determined by the past financials, but they do not guarantee what the business will look like in the future. You have to evaluate the business for what it can give you after you buy it.

Commandment # 2 is about buying a good business and making it great.

You will learn how to determine if the one you are considering already has certain common features.

Commandment # 3 is ingredients are nothing without a recipe.

Is it possible to put all parts of the business together into one cohesive unit for growth and cost?

Commandment # 4 is called Fall In Love With the Profit.

This traps many other people when they get emotional about the business before they buy it and their judgement is forever clouded. You have to remain objective.

Do what you do best and manage the rest.

Making sure that you already have what the business needs.

Can the business be put on autopilot?

Can this business improve its systems and run on its own so you can focus your attention on driving the profits? What are the costs of the technology?

Commandment # 7 is determining what holds the gold.

Almost all businesses have components that the current seller has not exploited. You will learn how to identify hidden values.

Every business has to have three personal things.

You need to be able to explain it in simple terms. You need to be able to explain it with enthusiasm. It must be a business that makes you proud.

Commandment # 9 is about evaluating and identifying what isn’t perfect yet.

Every business needs attention. The best results come from the smallest improvements. You will learn how to find them.

What is it worth to you?

You cannot truly evaluate the benefits of any venture. You will be able to take a realistic approach to this important exercise.

The right business for you.

It’s hard to explain in one paragraph what it is that will lead you to the right business. It is a combination of all of the areas covered in the lesson. We would have to reduce our entire course to one sentence.

Whatever it is that you do best must be the single most important factor that drives the revenue and profit of any business that you may consider purchasing. End of story!

Many buyers don’t know what business is right for them. Nobody can tell you what is right. You know your strengths and weaknesses. Be honest with yourself. Don’t be delusional. Don’t pretend that you aren’t. The successful people realize that they don’t know everything. Search for businesses that will grow from your strengths and not suffer from your weaknesses.

If you match your strengths to the right business, you can be successful.

You will learn in this section.

A complete evaluation of the knowledge you already own. Potential businesses that can benefit from your strengths are identified. Discuss your areas of familiarity. You know the best industry. It’s possible to exploit a niche within your job. Targeting businesses that you like. Expectations are realistic and doable. You have to be willing to make the sacrifice. Money, control of your own destiny, and independence are some of the things that drive you. Understanding, dealing and overcoming restrictions can be difficult. We tend to be better at things that we enjoy. Specific tasks that you don’t like. Discuss your individual strengths. How to deal with weaknesses and understand their role are some of the things that are honestly identified. Income expectations It’s not a good idea to turn a hobby into a business. There are fears and comfort levels in a sales role. We will discuss how anyone can perform in a sales role. All great salespeople have seven distinct characteristics which can be easily learned by anyone.

TIMING

It is possible to set a schedule for buying a business in a fraction of the time it takes others. You will learn how to avoid wasting time and what time you must devote to each stage of the buying process. The businesses that make sense for you will be the focus of your search.

There is a ninety-percent chance that a buyer will drop out after spending a year looking for a business. The longer you look, the less likely you are to buy.

You will know what businesses are right for you, and then you will find them, instead of looking at business after business and trying to decide if any are right.

Opportunity comes in a second and disappears in an instant. You should complete this project in the shortest time possible and move on to earn the benefits that you so richly deserve.

You will learn in this section.

Learning how to control your time is one of the theories behind time management. The buying process schedule should be met from the beginning to the end. Most people become chronic lookers by trapping them. You need to follow the rationale and strategy to get this done. The steps to cut the average buying time are specific. You can get all of the information you need without spending a dime. You will be prepared for any situation that you will encounter. The seller and broker need to work on your timelines. What you must do to keep things moving is why all other parties will do it. Most of the time, they waste their time in the key areas. The tasks to be completed for each stage will be outlined in your buying schedule. You will not get delayed later on if you do seven things at once.

Where to look.

It is difficult to find good businesses if you don’t know what to look for. The longer you look, the less likely you are to buy. This is not a looking process.

You will be able to identify good potential businesses by the end of this section.

All the resources are examined in this full examination. You will learn how to properly review the media where businesses are listed for sale. You will know what to look for in the local newspaper, online and individual broker listings.

We spent 90 minutes on the internet, bought three local Sunday papers, and reviewed four popular magazines. We wanted to get a feel for what the average buyer would face if they decided to look for a business that week. There are over 150,000 businesses for sale.

You will spend the rest of your days looking if you don’t know where to look, what to look for, and how to tear apart listings.

You will learn in this section.

The resources available to you are examined. The best places to find what you are looking for. There is a classified section. There are broker listings in the paper. What to discard, which ones to keep. How to find more information than is published. Key for sale by owner listings are identified. Understand the attitude of every seller. You must wait before calling the seller. If you want to focus on what is right for you, tear apart the buyer-listing sheets. Identifying and avoiding Get Rich Quick schemes. Publications to avoid and publications to use. To get great industry information and potential available businesses, you need to contact the various publications. The Internet is a complete review. The best websites for business for sale are listed. There are hours of useless searching. The networks of lawyers and accountants are utilized. They will solicit businesses for you for free. Networking banks and other lenders. If you don’t qualify for membership, you can use The Chamber of Commerce as a tool to get in. There are friends, family and business contacts.

Getting organized.

A project combining several tasks is buying a business. The spokes on a wheel are an example of how important another part is. You won’t make the right decision if you neglect the Due Diligence. You will fall short if you overlook financing preparation again.

Begin right and set the proper foundation. You have to be organized to do that. You won’t have the luxury of reviewing comparative listings as you narrow the search if you don’t properly sort, record, review and file Multiple Listings. It’s important to get off to a good start. Each stage can be built upon if you organize yourself from the beginning. This lesson will show you how to get set up, the files you need, how to log the mountains of information, and how to successfully retrieve what you need in a moment’s notice.

You will learn in this section.

It is a priority to make organization a priority. A complete list of all of the items will be needed to begin the search. To set up specific file folders. The system is used to manage the paper. The paper needs to be kept under control. There are multiple listing sheets. There are Individual Business listings. There is a discussion of non disclosure forms. The financial information is Dissecting. There is a way to catalog individual businesses. You will need the banking information. Once you decide to check out a specific business, individual files need to be set up. The post purchase files are created. A system to organize your thoughts. The money is reviewed for the search.

Business people.

Most inexperienced buyers assume that if they hire a business broker they will get the right business. There is nothing further from the truth. The wrong broker will be a waste of time.

A good broker can help you, but they can’t do your work.

A business broker always represents the seller. The seller is in a conflict of interest because they pay their commission even if it is not their listing. They want to sell you any business, not necessarily the right one.

You should use a business broker to help you in two areas.

Through their database of multiple listings, they provide access to businesses for sale. Bad news is delivered to the seller.

You will learn in this section.

Should you use one? You need to hire the right one. They probably won’t even return your emails or phone calls until you show them you’re a serious buyer. How can brokers help you? What is in it for them? Why is this important and who pays their commission? Is it possible to get them to reduce their commission to help you pay for a business? The broker has obligations to you. There is a way to find a good broker. Local brokers can be found on websites. Your first call to the broker. A meeting with a potential broker. One great technique will identify how effective they will be. When interviewing a broker, ask 18 questions. They are looking at their references with former buyers and sellers. They asked their current clients 17 questions. Asking former business sellers for references and The 10 Questions. The broker should show you all of the listings and the ones that may be used for someone else. Understand how the broker negotiates with the seller. Should you use the broker’s contacts? Getting your broker to acquire additional information for you is how to handle businesses that you may find on your own. Sample letters can be sent to businesses. There is a review and case study of the Broker listings. Exhibits and forms they will want you to sign.

There is a reason why every business is for sale.

Even businesses that aren’t currently listed are for sale. Every owner would sell under the right conditions. Wouldn’t you? It is possible that a company that is not currently on the market is the right business for you. Why limit yourself to what is listed if you can determine the specific type?

You will learn how to approach businesses that are not currently on the market. You will have the skills to convince someone to sell you their business even though they may say that it is not for sale, and you will know how to present yourself properly to the seller without being overly eager.

You will learn in this section.

Every business owner will sell. There are six conditions by which sellers can choose to sell. Potential and under-valued candidates are identified. You can learn how to spot the strengths and weaknesses of a business. There are proven strategies to approach and solicit businesses that are not currently for sale. The ideal business may be staring you in the face if you pursue a business that has always intrigued you.

Are they for you?

Under the right conditions, a franchise is a great option for certain buyers. You are better off buying an existing location, one that is already operating successfully, rather than trying to find, buy and build a new one.

They will bombard you with market studies when you approach a master franchiser. If the study proves correct, if the area continues to grow at the same pace, if the industry continues to thrive, and if you buy all of their promotions, then you should do well.

You wouldn’t have to work for a living if you were born into the royal family.

Franchises are great for some people, but only if you buy a resale. We will show you where and how to find the right one.

We will outline the different investigative strategies for you in a step-by-step approach. You will learn how to approach the Master Franchisers so that they will reveal available resales instead of trying to sell you a new location.

You will learn in this section.

How to make money in franchising. There are three big advantages that a franchise can offer. Understand why franchises are not for everyone. There are steps to find available resales. franchisers can’t guarantee your success. The Master Franchiser needs to cooperate. Find resales that are not officially for sale. There is an evaluation of new versus existing franchises. Some franchisers won’t tell you about resales. There is a franchised concept. Contracts are important, the details, and what you must be on guard for. There are 25 things you need to know about the franchise contract. The franchiser can veto a deal. The Master Franchiser may be your competitor. The owner needs to pay the fee. Conducting the Due Diligence is different from a non-franchised business. 17 critical areas will be investigated. You can test drive a franchise. Key questions to ask other franchisees. To make sure they are the right group to be with, the franchiser needs to ask 15 crucial questions. There are resources to find franchises.

Working with professionals.

Regardless of what size business you are looking to purchase, you will need to use the services of an accountant and lawyer. The smaller the business, the more you need them. They will be a way for you to be certain that anything you agree to is legal and binding, and that you are aware of any risk or exposure.

There should be fairness, reason and balance. Lawyers are very capable of messing with your deal. The lawyer’s role is to write in legalese what you and the seller have agreed upon.

You will learn how to hire them and which questions to ask that will assure you of engaging the right professionals who can assist you in your purchase and not simply take your money for drawing up contracts.

You will learn in this section.

Discuss the way accountants and lawyers operate. They can ruin every deal. They can help you get a better deal. They can offer some protections. Do you need them? They can help you. They use their contacts. How to avoid the traps that many fall into and pay a fortune for services you can easily do on your own. How to pick them. To make sure they are right for you, ask them 9 key questions. They are checking their references. They give you free information. When will you need a specialist? The relationship’s parameters are set. There are 20 key points to cover in your first meeting. What are their costs? Everything is negotiable. You have to ask certain questions first. They need to be focused on your work. Big fees are not necessarily good. They need to be interested in your business. There are 11 Surefire Ways to save money on their fees.

Basic accounting.

The beauty of accounting is that it is based on numbers and numbers don’t lie. It is possible for sellers to lie, but not numbers.

The format of the Financial Statements is the same from one business to the next so you will be familiar with it within an hour. It is very easy to get a grasp on this area.

Don’t get crazy about the financials. They reflect the past, not the future, so you want to view them to get an idea of what to expect. If you want to buy a business for the future, you have to plan on going backwards.

You will learn in this section.

There is a complete overview of accounting. The accounting for the most inexperienced buyer is defined. A lack of accounting can’t stop you from buying. Accounting is not good. Accounting can give you a glimpse of the future. The accounting basics will be clearly defined in the case study. Most of it is covered if you can add, subtract, and divide. Matching credits and debits. Understanding the relationship between time and accounting. There is a basis for accounting. Understand Cash and Accrual Accounting. You will learn how to read financial statements in an hour. There are things to look for on financial statements. Many people fail to notice. How to determine if they are true. Sellers will know you are an expert if you learn all the buzz words. There are real-life examples and case studies. There are different periods in the life of a business. The balance sheet is interactive. Net worth is defined. Valuing assets is related to this. Understanding Liabilities is important. Determining the owner’s equity. The income statement is interactive. Revenues, Expenses and their impact are understood. The hidden meanings can be found by learning how to uncover them. The financials can be manipulated to make them look better than they are. Not to mention a lot of aggravation, perform an interactive exercise that can save you thousands of dollars.

The seller and their goods.

The seller is the most important part of the equation. The seller needs to pull the gun from the other side in order to complete the deal. The seller can give you a lot of information throughout the process. The owner knows the business better than anyone else.

There is a warning! There is a warning! Don’t forget that a particular seller wants to sell you something, no matter how decent, kind, reasonable and helpful they may be. Will they tell the truth to you? Maybe. Will they stretch the truth? Always! They will say and do what they must to sell you, so be aware that they see you as their way out. They want to close the deal so they can be a lot of information, but you have to qualify it or face consequences later on.

You will learn in this section.

The mental aspect. You have to do seven things with each seller. They can help you. They can hurt you. They will give you some information. Establishing a direct negotiating link with them. How to deal with unwilling sellers. They give you information. They need to become a fan of yours. They need to agree to finance the purchase. The approach is used when they stretch the truth. Being sensitive to their concerns. Helping the situation. Dealing with Seller’s Remorse. They are gaining their trust. Don’t waste their time. Limit your exposure and play it cautiously with them. You are trying to sell each other. Get them to stay twice as long as they have offered. After closing, how to work with the owner. Determining if they should stay. The situation can be made easier. How long should they stay? The training period is over. The former owner should play a role. How involved should they be? You will face obstacles. How to end early. Where should they work? You should listen to what they have to say. They are available for future questions. If you need them for longer, review all of the possible agreements.

It’s important to focus on a target.

The buying process claims its victims in the first stage. Lookers are either converted into buyers or remain lookers. Focus, focus, focus on the right target is crucial, but it’s no use looking until you know what to look for

This section has real-life examples and case studies that will help you find businesses that make sense for you and will help you tear apart business for sale listings in all formats.

You will learn in this section.

There are more than 70 individual items to review and we will provide you with the specific things to look for with each of them. An entire group of businesses have to be eliminated immediately. The resources available to you are examined. The best places to find what you are looking for. There is a classified section. Slashing the choices that make sense for you. How to read the Broker listings. If you don’t review For Sale By Owner businesses and learn the exact approach you must use, you’ll mess it up and then you can forget about the listing. Specific techniques and sample letters can be used to approach private sellers. Useful publications can be used to reference. You can leverage your network of family, friends, business associates and Lawyers and Accountants. A review of your expectations. Multiple listing sheets is a line-by-line analysis/case study and detailed examination of everything that you will find on the listing sheets that are sent to you. There are business listing sheets. Which to toss, which to keep? A complete description of every line item, its meaning, things to look for, and inconsistencies to identify and potential candidates is required. Case study on how to find more than what you see in these listings. There is a complete financial review. There are real-life examples.

The questions to ask every seller are the key ones.

In this section you will learn how and what to prepare, the specific questions you must ask, the answers to look for, point-counter-point strategies, and techniques for every possible situation. You will know what the seller will ask you, what answers to give, how to uncover the real answers, the true reason why they are selling and tons of other tips.

It will be an exciting, scary, anxious and exhilarating experience when you visit businesses. The seller is feeling the same thing. First of all, you want to learn enough to determine if you want to pursue it further, and second, you need to obtain enough detailed information so that you will be able to begin gathering information on the industry and the competition.