buying an existing business

[learningtogrow]

Does anyone have any advice on buying an existing business?

I've found a health food store for sale online in another area than where I'm living (never been there). The area was actually what intrigued me first as I'm looking to move, and then I saw this business for sale. What questions should I be asking?

The owner will finance as well as train. Sounds like a pretty good deal to me but I know nothing of financials and how to run a business. I believe I could do it, but I need to know that I'm not buying a disaster. Everything I've heard so far sounds like it's been successful, but one real estate agent did say she "heard it's hard to make much profit b/c the local markets are incorporating health food". Figured I'd better do my research before jumping into something.

Any advice?

[Sam988]

I have been struggling with this issue myself and have done some searches lately; these links have been among the most helpful:


Coyote Blog: Buying a Company Part 1 (or how I got into this)


Richard Parker Articles & Business Articles at Business Nation



Hope it helps.

[dougm]

Be sure you know what your buying. Make an investment before you buy. Have an accountant look over the books before you buy. How long is the lease, what are the major expenses. Ask yourself, is this my passion, do I wake up every morning and think about how I can help some one with my product. If you had to think about the last question then move on to something else because its not for you.

Good luck
DJ

[Sam988]

Originally Posted by dougm

Ask yourself, is this my passion, do I wake up every morning and think about how I can help some one with my product. If you had to think about the last question then move on to something else because its not for you.

Good luck
DJ

There's a lot more to having your own business than to constantly "wake up every morning and think about how I can help some one with my product". Many more motivation drivers involved, and the one you mentioned doesn't need to necessarily be one of them.

[dougm]

Sam-

I understand that there is alot more to running a successfull business but if you don't love what your doing then it makes it alot harder.

[sv800]

Check up this useful info

Buying a Business
The pros and cons of buying an existing business versus starting fresh.


7. CHECK-LIST FOR GOING INTO BUSINESS

Good luck in this venture

[ChaosKiwi]

I know someone who recently brought an existing business and had some trouble with the agreement for teaching the new owner about the business. If you are not familiar with the type of business you are going to buy, make sure there is a detailed outline of the training and hours the old owner will give to you and some way to penalize them if they fail to meet the requirements.

[codefreeze]

Interesting one.

I wrote a few notes together in this article:

Buying A Business - A Simple Guide

Not the best article I've ever written though it covers the basics.

I think DJ's advice is essential - you need to get professional advice - someone to look over the books.

There's a lot to buying a business but the fundamental thing you should be looking for is potential, because when you buy a business you are basically buying future profits of that business.