So, you came across some money, and have made the decision to buy a business. Congratulations! Owning your own business is one of the most proactive, practical, and responsible decisions you could make.
Once you have found an industry and geographic location that interest you, you should now take a closer look at some businesses. With your business attorney in tow, it is time to do your due diligence. Buying a business is an extremely big decision, so it is important to take as much time as you can to perform research.
For example, why is this business for sale? Is it because the owner simply wants to retire? Is it because the market for the product they offer is shrinking? Is it because they can no longer be competitive against online stores? Is it a general problem with workforce attitudes? There are many valid reasons for a business to be sold, but not knowing why could find you head-to-head with a massive financial problem just a short while down the road.
You also need to investigate the business’s relationships with its employees, customers, suppliers, and vendors. You should also check with any relevant industry licensing boards, credit reporting agencies, and the Better Business Bureau for any complaints.
Once you have done all that, it is time for you and your attorney to start looking at the company’s finances and asking price, and if everything comes up green, make a bid. Before you know it, you may find yourself the owner and manager of your own company.