Starting a business from scratch is not always the best option. Buying an existing business has a lot going for it and it may be an alternative you should seriously consider before getting too far ...
After you have decided on the type of business you wish to buy, begin to investigate the various options available to you. Looking for the right business can take some time ...
The buyer should ask a number of questions when assessing a business for purchase. If you are looking at buying do not jump in and sign an agreement until you have fully assessed every area of the business ...
Before you finalise the purchase of a business you will need to examine the documentation, financial records, and other paperwork, especially legal agreements. You will need to look at the following ...
Decide to investigate. You make the decision to look for a business to buy. You then check out businesses in the newspaper or by working through a business broker ...
After the buyer signs a letter of intent to buy the business and the seller accepts the letter, the buyer is given a specified period of time to carry out a due diligence investigation of the business ...
Wthere are a few methods that can be used for valuation, at the end of the day the price of the business will depend to a large extent on what you, as the buyer, are prepared to pay for it ...
The main point is that the final price is arrived at after negotiations and discussions between the two parties. Take a valuation as the starting point, but then work to get the lowest price possible for yourself ...
When you have settled on the price, the question of how to finance the purchase will arise. There are a number of sources to approach if you need to arrange finance to complete the purchase ...
If you are happy with most things, but have a few small areas of concern, cover yourself by making a reduced offer. Don't make an offer until you are confident about your final decision ...
The agreement is usually made up by a lawyer and will include all the terms and conditions that protect both parties. The Real Estate Institute of New Zealand has a standard form ...
This is not fixed standard procedure for all brokers but it is the process that some have used. It serves to illustrate what goes on behind the scenes sometimes and will enable you to understand better ...
As soon as you receive a call for a listing, set up the file. Grab manila folders immediately, put on the name, and then ensure that from that time on, every piece of paper relating to that business owner ...
It is only after you have had full discussions with the business owner, completed the listing form and profile questionnaire, inspected the business and researched other factors such as location ...
An approximate time for the third meeting should be arranged at the conclusion of the second meeting. Allow at least 7 working days, so the office has sufficient time to complete the business profiles ...
Each broker will receive calls direct to his mobile phone or to the office number. Advertising is usually placed for Saturday morning (and sometimes Wednesday morning), so calls will come over the weekend ...
Most business sales "fall over" because of problems and stalemates in the negotiation process. Work with the buyer as an ally, rather than a foe. Focus on interests, not on positions ...
When you start investigating whether to buy a business, you will come up with a list of advantages as well disadvantages if you go down the purchase option rather than starting one up from scratch ...