Atlantic Business Brokers

The quickest way to find yourself in your own business is to buy one that you already know well. However this doesn’t necessarily mean that it is the “right” business for you to buy. It’s worth repeating that you must purchase a business where the “driver” of the business utilizes your strongest talent. When you identify it and you believe that it will be profitable and enjoyable then go to the front of the class as your search will be less painful and time consuming than what others experience. You must realize that there isn’t a “Right” business out there for you. It will come down to what you make of it after the purchase.

What Do You Expect From The Business?

Most buyers have no idea how to answer this question and those that do typically have unrealistic expectations altogether. What do you want from the business? A pay check? How much? A chance to improve your life? How? Your financial picture? How much exactly? By when? Impact the lives of others? The chance to make decisions? What kinds? To be in charge of your destiny? Why? To build something for your children? To be able to work with your spouse? To build something great?

What Are You Willing To Sacrifice For The Business?

There are many ways to put it: Nothing comes without a price. The reward is proportional to the sacrifice. You get out what you put in. Any way that you cut it, you have to make sacrifices to make a business viable, enduring and profitable. Sacrifices are required. What's yours? Are you willing to work twice as many hours? Are you willing to forego any vacation for a year? Are you willing to mortgage the house? Clearly identify what it is that you are willing to sacrifice in order to buy and build a business.

Do You Have Access To Additional Funds?

The more equipment that a business needs, the greater the chances that major capital expenses will arise. They always do and usually at the wrong time. You must be sure that the business or you personally have the ability to finance unexpected but necessary major purchases (at any time). Some people live “paycheck to paycheck” but this is not an option for a business. You may be able to get by for a while but it ultimately catches up. It’s normal for businesses to go through difficult financial periods throughout their history. Build your business so that as profits increase you don’t bleed it or at the very least be sure that you will be able to personally finance or collateralize loans should something unexpected arise.

Many potential buyers are simply looking to “buy a salary”. If that is your motive, fine for you however you must keep in mind that you will probably only rise to that level. Be realistic in what you require on a monthly basis to meet all of your personal obligations. Cut back wherever you can initially so that you don’t put any added burdens on yourself or the business. Go through your annual expenses then schedule them by month (when due) and set up a personal expense calendar. Once complete, lock it away (in your mind). This figure is what you absolutely must have but do not confuse this with your financial goals. You must expect the business to give you more. You have to see that though your efforts and planning the business will be capable of generating more than you expect. Of course you must be realistic (chances are slim of becoming a billionaire from an express oil change location) but try to expand your thoughts and “see” how the business can “expect” to grow your income. Any business that you purchase must have the ability to grow…if things don’t grow they die!

What Would You Consider To Be Your Strengths?

The greatest “strength” a businessperson can possess is to know what their “weaknesses” are. We all have good and bad points. Consider all of the aspects that may relate to a business environment. For example, patience and sympathy are wonderful character traits but you may have to be somewhat less so when dealing with human resource issues or sub par suppliers.

How Long Do You Realistically Expect (or want) To Keep Working?

How many years do you want to work? Surely, you want to retire and enjoy the fruits of your labor, as this is one of the greatest benefits of business ownership.  As best as you can, determine what annual income you need to have the kind of retirement you want, and factor in the number of years you “want” to work. Set a goal of what you will need to save each year to realize your targets. Keep in mind, that your business is a tremendous asset for retirement. The day will come when you may want to sell it. Build it strong and you’re early retirement is available. You must understand that a business can be much better than any possible retirement savings because its performance is in your hands. Never run a business with the only goal to sell it, rather build and operate it so that it can be sold and provide you with a wonderful nest egg. By the same token, you must think about the number of years that you will be able to work effectively so that your choice of a business will marry well to this factor.

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