Purchasing a Business – Your First Steps

Going to work for a company has a great amount of rewards and drawbacks – you make a steady salary and you don’t have to worry about overhead, operations, payroll, human resources, and the countless other tasks that require attention.

While there are plenty of advantages, working for someone else can also become tiresome and routine. People who are considering buying a business often ask, “Why work for someone else when I can be in control and only have to myself?”

Deciding to purchase a business is the first step in what can be a challenging, and ultimately rewarding, process. You’ll probably have a great deal of questions, such as “Who do I talk to?” and “How much money will I need?”

All good questions, but the answers will come after you’ve discussed this entire project with your family. After all, they’re going to be experiencing this process with you, and there will be periods when you won’t have time to spend with them. You may also need to establish a tighter budget until the operation is up and running. In some cases, you may have to move them and yourself to another city or state.

Once you’ve had these conversations with each member of your family, you need to consider three main options that are associated with being in business for yourself. 

• You can decide to BUILD a business from the ground up. 
• You can BUY an established business that’s financially sound and has growth potential.
• Invest in a business as a PARTNER.

Out of these three options, building and partnering don’t grant you total independence or financial security. Building a business requires time and money – with no real guarantee of success. The chances of building a successful business which eventually turns a profit aren’t encouraging.

Assuming a partner role in a business can be rewarding, but the feeling of “doing it yourself” isn’t there. Plus, there’s no guarantee that you’ll be in charge, and growing the business the way you want. Finally, what happens if the partnership ends?

Preparing to Buy a Business

Buying a business is the best way to work for yourself, indulge your entrepreneurial spirit, and reduce your risk. Like any process, you first have to narrow down your choices when it comes to purchasing a business. 

One way is to buy an established business that’s up for sale. This could be a franchise that has proven to be successful year after year. The upside here is that you won’t have to spend money and time getting your business off the ground. 

You can also decide to purchase a brand new franchise or dealership that’s located in another territory. This option might mean you would have to move to a new state, or another location in your current state.

Now you have to assemble an Advisory Team. Think of them as your board of directors. You’ll need a CPA to review your books, financial records and file your taxes. A business attorney is another integral part of the team – he or she can read your contracts and offer advice. The third – and most crucial – is a licensed and certified business intermediary. (Another term used is Business Broker.)

Murphy Business Sales has been helping people discover their dreams of owning a business for years, and our experience and knowledge has proved to be invaluable. If you’re thinking about going into business for yourself, and want to work with professionals, contact Murphy Business Sales today.