A Closer Look at 3 Major Factors to Consider When You Buy a Business

The simple but undeniable fact is buying a business is one of the single greatest financial decisions a person can make.  Buying a business can lead to great financial success or great financial failure.  This fact helps to underscore why it is so important to work with an experienced broker who can help guide you through the often labyrinthian process of buying a business.

In a July 2019 article from Smallbusiness.co.uk, author Kyle Carins explores three key factors that everyone should consider before they buy a business.  The first factor covered in Carins’ article, “3 Things to Consider When Buying a Business,” is appeal vs. viability. 

Appeal Vs. Viability

Not surprising, the most important variable for most prospective owners is that the business is indeed viable.  Not being able to differentiate between an appealing business and one that is viable can lead to financial disaster. 

As Carins points out, “Do you want to make money or do you want to fulfill a dream?”  Sometimes those two variables can intersect, but not always and not often.  In the end, it is vital to know whether a given business is, in fact, potentially lucrative. 

However, as Carins points out, it is also important that you choose a business that you will enjoy.  Nothing can be more spirit crushing than running a business that you truly hate, even if it is lucrative.  Selecting the right business for you is something of a balancing act that must take in a variety of often competing variables.

Considering Hidden Costs

The second factor that Carins looks at is the issue of “hidden costs.”  One of the key reasons that it is so important to work with a business broker is that a business broker understands these kinds of factors that you might otherwise overlook.  Due diligence is amazingly important.  For those who have never bought a business before, working with a business broker offers substantial protection against making a potentially serious mistake.

Second Opinions

The third factor examined in Carins article is “Getting a second opinion.”  For Carins, getting a second opinion is actually linked to due diligence.  He feels that additional opinions regarding a given business should go beyond working with professionals and should also include talking to friends and family who know you well.  Additional opinions can help one see angles that might otherwise be missed. 

Again, buying a business is complicated and will take up a good deal of one’s time and mental energy.  Your friends and relatives, understand your personality and your wants and desires.  Their input can be particularly beneficial.

Finding an experienced business broker can help you do more than simply establish whether or not a given business is a “good deal.”  Brokers with years of proven experience can also help you determine whether or not a specific business is a good fit for you and your lifestyle.

Copyright: Business Brokerage Press, Inc.

Yacobchuk/BigStock.com

Businesses For Sale

Sell Your Business

Sell Your Business

When selling your business, you need to have an expert Business Broker. Trusting the sale of your business to anyone else could end up permanently damaging the value of your business. Confidentiality is of absolute importance in selling your business. Selling a business without anyone finding out your business is for sale requires a specialized skill; it is one that Jim Tharp Realty has perfected over decades. Since 1969, we have successfully sold over 1,000 businesses and that number grows every day.

Read More

Buy a Business

Buy a Business

Working with Jim Tharp Realty means you will have the elite in Business Brokering at your side, ensuring you the highest chance of successfully acquiring your dream business. We are dedicated to working with you every step of the way. With Jim Tharp Realty, you’ll have a guide to help you navigate the precarious process of buying a business. Regardless of whether you are a seasoned Buyer or this is your first business, we can help.

Read More

Join our email list to learn about our latest opportunities

We Respect your Email Privacy

Afilliations

 
 
Jim Tharp Realty is thinking about all of those affected by COVID-19. Visit our Resource Center for helpful information for businesses.Learn More
+ +