Month: April 2020

Tips for Buying a Business

If you’re about to buy a business, you may feel incredibly excited about the road ahead. Finally, you get to realize your dream of becoming a business owner! Nonetheless, it’s important that you don’t allow this excitement to cloud your judgment when it comes to finalizing agreements with the seller. 

There are several things you should consider before closing the deal. Take a look at our tips for buying a business to ensure you’ve completely covered your bases in advance of making this monumental decision. 

Consider Getting a Non-compete Agreement

With so many details going into the negotiation process, you may underestimate the importance of including a non-compete agreement into the final purchase and sale agreement. This type of agreement is beneficial for the future security of your business as it guarantees that the seller won’t compete with you for a set period of time. 

“No solicit” and “No recruit” agreements may also be worth considering. A “no solicit” agreement prevents the seller from soliciting your customers, while a “no recruit” prevents them from poaching their former employees after the deal closes. 

Understand the Role that Key Employees Play

Many businesses that experience success do so based on the hard work of a few key employees. If you happen to lose these employees during a transition, you may find that you’re left with a different business than the one you thought you’d purchased. 

Putting in the effort to keep some of the most important employees in their roles can go a long way in maintaining successful business operations throughout your first crucial months as a business owner.

Depending on the situation, you may even want to negotiate a way for the selling owner to remain at the business in some capacity for an extended period of time. This could involve a structured payment plan or incentive plan to encourage peak performance and a smoother transition. 

Avoid the Pressure Trap

Too often, sellers will try to pressure potential buyers into rushing the decision-making process by telling them about all the other potential buyers jumping at the bit to purchase the business. However, these contenders aren’t always real, and these claims shouldn’t necessarily be taken seriously. 

If you feel pressure at any point during the negotiation process, don’t hesitate to take a step back to reevaluate your priorities. Most importantly, never fall into the trap of thinking that it’s worth proceeding simply because of all the time you’ve spent to get to this point. The worst-case scenario is not wasted time, but rather owning a business that you regret purchasing. 

Don’t Overlook Dishonesty

Be wary of sellers whose documents show that they’ve been fibbing on their tax returns. While they may claim that “everyone does it,” you can be sure that if they’re willing to be dishonest with the government, they won’t hesitate to be dishonest with you either. 

If you decide to proceed with a business owner who’s been underreporting their sales, you’ll need to do extra homework to ensure that you won’t be held liable for their behavior. In addition, you’ll want to have all the information they’ve given you independently verified to sort out what’s fact and what’s fiction.

Partner with a Business Broker

Are you in search of tips for buying a business because you feel overwhelmed by the decisions you’re facing as you navigate this complicated process? An experienced business broker can provide much-needed guidance and help you sidestep any pitfalls along the way. 

At Murphy Business, we understand how stressful it can be for first-time buyers to enter into negotiations on their own. You can rely on our professional brokers to assist you as you make important decisions about your future. We offer trusted valuation services, negotiate on behalf of our clients, and can help with drafting a final agreement that allows you to seal the deal with confidence. 

If you’re looking for more tips for buying a business, our business brokers are ready to help. Call Murphy Business today at (888) 561-3243 to speak with a professional business broker near you.  

How to Find Businesses for Sale

If you’ve recently decided you want to become a business owner, congratulations! You’ve just reached a huge milestone in your professional career. If you’re interested in owning an established business but aren’t sure how to find businesses for sale, you’re in the right place. We’ll fill you in on the various roads that you can take to become a business owner by purchasing an already existing business.

Locate Businesses for Sale with These Methods

Whether you want to start your career as a business owner by a specific point in time or are simply on the lookout for good opportunities that may arise, there are a number of routes that can lead you to your goal. Here are some of the most common—and most effective—ways to find a business for sale.

Calling Businesses in Your Area

While you may not feel totally confident cold-calling local businesses at the start, taking this step can help you get a sense of the market in your area. Since many business owners don’t advertise that they’re interested in selling for fear of scaring off customers or startling employees, it’s not always easy to figure out which businesses are for sale without asking directly.

Of course, the vast majority of business owners you reach out to won’t be looking for an exit. Nonetheless, this doesn’t mean you’re wasting your time. The individuals you connect with may be able to refer you to other business owners who are interested in selling. Making these contacts is an essential part of establishing yourself within the network of small businesses in your community and growing the list of people you can reach out to throughout the journey of business ownership.

Browsing Online Aggregators for Small Businesses

It probably comes as no surprise that there are plenty of websites out there dedicated to posting the details of small businesses for sale, including sites like BizBuySell.com and Bizquest.com. Other websites, such as Franchisegator.com, are geared more towards advertising franchises for sale. 

These sites offer tools that make it easy to search through different businesses based on their selling price, location, and industry. By using these tools, you can gain a better understanding of the businesses on the market in different locations if you’re not married to the idea of settling down in a specific area.

Putting Out Your Own Ad

Posting your own ad is a great way to get the word out that you’re looking to purchase a business. This route can bring about different opportunities than those you would find through a simple online search. 

Whether you choose to post on Craigslist.com, a local newspaper, or an industry publication, you increase your chances of catching the eye of a greater range of business owners when you put out an advertisement of your own.

Working with a Business Broker

Partnering with a professional business broker is probably the most efficient way to go about buying a business. Instead of trying to figure out how to find businesses for sale and determining which options are worth pursuing, you can rely on a professional who knows the ins and outs of the process and can guide you every step of the way.

What’s great about business brokers is that they won’t just show you what businesses are for sale in your area; they’ll also offer you expert advice that’s personalized to your individual preferences and professional goals. This can be especially valuable if you’re uncertain about the best industry to enter, or how your personal skills and strengths can contribute to your success in different fields. 

A broker can also expand your horizons about the many types of businesses out there—you might even come across an industry you’d never previously heard of that’s actually a great match for you.

In addition, the experience of a business broker can come in handy for knowing which businesses to avoid buying. After all, not every deal is going to be a good one, and you may not be in the right position to spot the pitfalls before diving in headfirst. Rather than making a decision you’ll regret, you’ll have the benefit of years of experience at your fingertips.

If you want to know more about how to find businesses for sale, get in touch with Murphy Business today at (888) 561-3243 to speak with a professional business broker in your local area.