What does it take to be successful in buying a business?

Certainly, you need adequate capital to buy a business and to make the improvements you want to the business for sale, along with maintaining some reserves in case things start off slowly. You need to be willing to work hard and, in many cases, to put in long hours. Unfortunately, many of today's buyers are not willing to do what it takes to be successful in owning a business. A business owner has to, as they say, be the janitor, errand boy, employee, bookkeeper and "chief bottle washer!" Too many people think they can buy a business and then just sit behind a desk and work on their business plans. Owners of small businesses must be "doers." … [Read more...]

What should I look for when buying a business?

Obviously, you want to consider only those businesses for sale that you would feel comfortable owning and operating. "Pride of Ownership" is an important ingredient for success. You also want to consider only those businesses for sale that you can afford with the cash you have available. In addition, the business you buy must be able to supply you with enough income - after making payments on it - to pay your bills. However, you should look at a business opportunity with an eye toward what you can do with it - how you can improve it and make it more productive and profitable. There is an old adage advising that you shouldn't buy a business unless you feel you can do better than the present owner. Everyone has seen examples of a business that needs improvement in order to thrive, and a new owner comes in and does just that. Conversely, there are also cases where a new owner takes over a very successful business and not soon after, it either closes or is sold. It all depends on you! … [Read more...]

How are businesses for sale priced?

How are businesses for sale priced?  Generally, at the outset, a prospective seller will ask the business broker what he or she thinks the business will sell for. The business broker usually explains that a review of the financial information will be necessary before a price, or a range of prices, can be suggested for the business. Most sellers have some idea about what they feel their business should sell for - and this is certainly taken into consideration. However, the business broker is familiar with market considerations and, by reviewing the financial records of the business, can make a recommendation of what he or she feels the market will dictate. A range is normally set with a low and high price. The more cash demanded by the seller, the lower the selling price; the smaller the cash requirements of the seller, the higher the price. Since most business sales are seller-financed, the down payment and terms of the sale are very important. In many cases, how the sale of the … [Read more...]

What is the real reason people buy a business or start a business?

What is the real reason people buy a business or start a business?  There have been many surveys taken in an attempt to answer this question. Most surveys reveal the same responses, in almost the same identical order of priority. Here are the results of a typical survey, listed in order of importance: 1. To do my own thing, control my own destiny. 2. Don't want to work for someone else. 3. To better utilize my skills and abilities. 4. To make money. *It is interesting to note that money is not at the top of the list, but comes in fourth.  For More Information, please contact us at: MGL Business Solutions - Cincinnati, Ohio 45248 Email:  Mike@MGLBusinesssolutions.com Phone:  513-200-0247 … [Read more...]

Why should I buy a business rather than start one?

Why should I buy a business rather than start one?  An existing business has a track record. The failure rate in small business is largely in the start-up phase. The existing business has demonstrated that there is a need for that product or service in a particular locale. Financial records are available along with other information on the business for sale. Most sellers will stay and train a new owner and most will also supply financing. Finding someone who will teach you the intricacies of running a business and who is also willing to finance the sale can make all the difference. Invest in Creating Happy Employees & You’ll Be Rewarded For More Information, please contact us at: MGL Business Solutions - Cincinnati, Ohio 45248 Email:  Mike@MGLBusinesssolutions.com Phone:  513-200-0247 www.bizbuysell.com www.bizquest.com www.ibba.org   … [Read more...]