| When a business is put up for sale by its owner, | | | | owner. For this, you will have to take the time to |
| he or she may have their reasons for relinquishing | | | | build a relationship with the owner, either through |
| the business. It could be the result of a crushing | | | | direct contact or through emails. At times, you |
| financial condition or it could be something as | | | | may also have to depend on other sources for |
| mundane as the need for a change of pace. | | | | information. Make sure that there are no ugly |
| Whatever their reasons, it is you, the buyer, who | | | | surprises waiting for you after you take over the |
| has to decide whether the business put up for | | | | business. |
| sale by the owner is worth your while. | | | | When a business is put up for sale, it is only |
| A business is worth buying only if it is congruent | | | | natural for the owner to expect a quick |
| with your existing skill set and if it gels well with | | | | settlement. But, there is no need to hurry up. |
| your personal interests, expertise and experience. | | | | Take your time with the paper work. Expect to |
| For example, you may be a foodie who knows | | | | spend at least 30-60 days to study the current |
| the name of every kind of exotic food, but that | | | | business position, to draw up a cogent agreement |
| does not mean that you will make an excellent | | | | and to get things moving in the right direction. |
| hotelier or restaurant owner. So, your first | | | | Make use of the services of a qualified |
| concern is to spot a business for sale that suits | | | | accountant and solicitor. Do not skimp on these |
| you the most. That way, the risk and potential of | | | | expenses as the future of the business may |
| failure is greatly reduced. | | | | depend on something they unearth. |
| When you have decided to buy a particular | | | | Before you sign on the doted line, make sure that |
| business that has been put up for sale by its | | | | you have considered all aspects of the new |
| owner, it is essential that you dig a little into their | | | | business. Look into the competitive factors |
| reasons for selling, even though the digging does | | | | involved like the price, delivery, change etc. Find |
| not sit well with you. Understand this, businesses | | | | out if you will be doing business in a mature |
| are put up for sale by their owners because the | | | | industry or an emerging one. Both have their own |
| owners want out. The reasons could be many: | | | | advantages and risks. Have some clear ideas |
| - Health problems | | | | about your operational costs, advertising charges, |
| - Personal problems | | | | monthly running costs etc. Find out whether you |
| - Emotional crises (like a divorce or death of a | | | | will be inheriting the staff along with the business, |
| partner) | | | | and if so, whether they are competent enough to |
| - Financial crises | | | | handle their jobs. |
| - Personal financial troubles | | | | Ultimately, buying a business put up for sale by |
| - Climbing costs | | | | the owner could be remarkably profitable. There |
| - Obsolete product or technology | | | | are people who specialize in the selling and buying |
| - Lack of experienced staff | | | | of businesses, and they make a killing doing it. It all |
| - Desire for quick profits | | | | depends on the amount of effort and discretion |
| The best way to find out the exact reasons for | | | | you put into the process. |
| selling is straight from the horse's mouth: ask the | | | | |