Questions to Ask When Buying a Business

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  Buying an existing business can be a great way to become your own boss without going through the headaches of startup. 
  To begin, you'll want a business broker on your team. A good broker will find companies that are up for sale and that meet your criteria. April Summars is a very knowledge business/restaurant broker.  She knows what is available and  can even find businesses that aren't advertised for sale but whose owners may be willing to sell.
  Now that you have your broker and her team here are some questions to consider:
  
  
  Is the industry in growth mode, or is it mature or in decline?
  
  
  Is its target market growing or shrinking? 
  
  
  Are its target customers undergoing demographic changes, such as aging, loss of disposable income, or other transitions that could put the business at risk?
  
  
  Is the business's customer base growing? 
  
  
  Is the business adequately diversified, or is it overly dependent on one or two big customers?
  
  
         How does this business compare to competitors in its industry?
  
  
         How many competitors are there?
  
  
         What are their strengths and weaknesses?
  
  
  Are  new business  moving into the area?
  
  
          What kind of staff does the business have?
  
  
  Do employees have skills that are difficult to find elsewhere?
  
  
  Are their wages average, above average, or below average for the industry?
  
  
  What benefits does the company offer?
  
  
   Is there a lot of turnover at the company?
  
  
  How long have key employees been with the company?
  
  
  Are key personnel likely to stay with the company after a change in ownership?
  
  
   What is the company's reputation in the industry and the community?
  
  
  
  
  Businesses are often up for sale because of problems the owner may try to hide.
  You can do research online as well as  ask around in the community to learn as much as you can about the reputation the company has among customers, vendors, and prospects.
  
  
  Also keep in mind while all of this has it’s importance and it’s place your operational and managerial style has a big impact on the businesses bottom line. If a business is not doing well it is because of a managerial issue of a great business concept  in the wrong location?
  
  
  As a business broker I can help you find answers to most all of your questions.
  
  
  Call and let’s get started today!
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