This how to buy a small business template has 7 pages and is a MS Word file type listed under our business plan kit documents.
Sample of our how to buy a small business template:
HOW TO BUY A SMALL BUSINESS If you're considering becoming an entrepreneur, many options are open to you. The most common options are launching a business by yourself, partnering with someone or some others, and buying an existing business as is. Buying a small business is a unique, yet viable way of creating a stream of income for yourself. However, this is as long as you invest in the right business and follow the appropriate steps. While buying an already existing business can bring on a lot of profit, it can also bring risks and losses with it if care isn't taken. You have to ensure that you know the important steps to follow. For that reason, we've put together a guide that'll help you while you consider buying a small business. With the guide, you'll know the important questions to ask, the right places to look, and the pros and cons of investing in an existing business. Why Do You Want To Buy A Small Business? It's indeed tempting to invest in a small business, especially if it's one that you're passionate about or one you're fond of. Whether you've been considering buying your favorite bar down the street, or you've had dreams of owning a bakery in memory of a childhood dream, it's important to stay realistic. Why do you want to own a business and which one can you buy? Here are some important questions that you'll need to answer: How Much Time Do I Have For This Business? Many people don't realize that you can own a business without running its day-to-day activities. Do you intend to acquire a business so you can run its daily activities, or do you intend to have a less conspicuous role as a silent partner? Rather than buying the business, if your intention is the latter, you can consider investment instead of acquisition. What is My Expertise in Business? This doesn't only relate to the type of business you own, but as a business person in general. As a business owner, you should have a level of expertise in the areas of marketing, accounting, management, etc., especially if you intend to run the business yourself. What is My Expertise in This Area of Business? How much do you know about the business you intend to buy, the market and competition analysis, and business planning? Even if you don't end up running the business yourself, you must know one or two things about the sector. How Will I Fund the Business? This is an important question that needs to be answered. Without a funding plan, a business has a 99% chance of crashing. Consider the funding options available to you, and the sustainability and longevity of the source. How Will I Acquire This Business? While you don't have to attend business school or have long years of experience before you own a business, it's still vital that you have a level of know-how when it comes to business. This helps to define the longevity of the business right from the beginning. Once this has been settled, you can now move on to acquiring the small business. Checklist for Buying a Small Business Acquiring a business involves many important steps. Some things should be put in place for your business acquisition to be valid and to ensure that you have the best opportunity before you. A business acquisition involves funding, management, legal, and accounting needs that have to be attended to. Here's a checklist that you should pay attention to before purchasing a business. Pick the Right Business When considering the business to buy, you can begin with things that interest you and areas you have a level of experience in. From there, you can narrow it down to businesses that have higher chances of thriving. Ask all the necessary questions relating to bankruptcy, the reason for sale, and existing court cases. This is to ensure that you aren't buying an existing problem. Look into the business history, challenges, and existing operations to ensure that the business will succeed under your ownership. Figure Out What the Business is Worth After picking the potential business, you can work out an estimate of how much you think the business is worth with a business appraiser
