If you’re looking for a new opportunity, buying the perfect business starts with choosing the right type of business for you. What is ideal for you may not be for another. The key is to identify what you are good at, what you like, and want, and then match that to the business. It’s equally important to also determine what you don’t like and wouldn’t be happy working with. Knowing what you don’t want and why you don’t want it, can be just as helpful in choosing the right opportunity as knowing what you enjoy doing. At the end of the day, there probably isn’t a 100% perfect business, but there is likely an excellent business that matches up to your talents that you can take to the next level.
Consider your requirements and preferences
The best place to start is by looking at an industry you’re familiar with and understand. Think long and hard about the types of businesses you’re interested in and which best match your skills and experience. Also, consider the size of business you are looking for in terms of employees, number of locations, and sales.
Next, pinpoint the geographical area where you want to own a business. Are you looking for a business for sale in DFW or at a wider area? Assess the labor pool and costs of doing business in that area you are interested in, including wages and taxes, to make sure they’re acceptable to you.
Once you’ve chosen a region and an industry to focus on, investigate every business in the area that meets your requirements. Read this article on What to look for when you are buying a business, do your homework, identify what is important, and eventually, you will find the right one.
Based on the size of business you are looking for, you should probably start by looking in the Biz Buy Sell network. The BBS is perhaps the best collection of companies for sale that you will find. Remember, just because a business isn’t listed doesn’t mean it isn’t for sale. Talk to business owners in the industry; many of them might not have their businesses up for sale but would consider selling if you made them an offer.
Put your networking abilities and business contacts to use, and you’re likely to hear of other businesses that might be good prospects. Also, you might consider hiring a buy-side broker. They can do all the leg work and investigative due diligence for you and then present the opportunities to you.
Contacting a business broker is a great way to find businesses for sale. Most often, brokers are hired by the sellers to find buyers and help negotiate deals. If you hire a broker, they will most likely charge you a commission–typically 3 to 5 percent of the purchase price with possibly some amount of money upfront or a retainer fee. Where you are in the process and how large of business you want will determine the cost. The assistance brokers can offer, especially for first-time buyers, is absolutely worth the investment.
However, if you are really trying to save money, consider hiring a broker only when you are near the final negotiating phase. Brokers can offer assistance in several ways. Brokers already have relationships with multiple banks and thoroughly understand the financing options; they can significantly impact your journey with these contacts. Finally, the ability to negotiate details and really get deep into them is where brokers will earn their money. No one wants to get burned by missing a term or date that can impact your purchase.
Good Luck with your future business, and feel free to contact Valhalla Brokers anytime with your questions; we are glad to help!
Valhalla Brokers has lots of options when it comes to buying a business, our listings change every month as we add more businesses for sale and remove those that we had the pleasure of selling and helping the owners enjoy retirement. From Manufacturing to Software to Landscaping, to Auto Repair we always have a wide variety of options to consider. Sometimes we have companies that are not always listed as openly as others. Please feel to contact us in confidentiality regarding these opportunities.