Controversial as it sounds, you don't need a lot of special training or knowledge to analyze a business you want to buy. You don't need any special degrees or training. And you don't need to empty your bank account.
One of the things you may want to invest a little cash in (although not a lot), however, is when it comes to analyzing the inventory.
In fact, I heartily recommend you use the outside inventory companies. They're listed in the Yellow Pages under "I".
Why do I want you to use an outside inventory company?
Four reasons:
1.) You're going to find that they're very good people. They are very professional and they are knowledgeable in the area of the inventory that you are buying or you're selling. You're also going to find the expense is not that high. Usually they're pretty cheap.
2.) You're also going to find generally that they're bonded. That means if a mistake is made by these companies in handling the inventory or appraising the inventory or valuing the inventory during a transaction, they're good for it.
3.) We normally find that buyers and sellers end up arguing and fighting and kill a transaction if they're together any more than 40 seconds. (No joke!)
4.) Perhaps most important of all: The average buyer of a business is not as knowledgeable in the stock room inventory as the seller, and this then puts you on even footing with the seller. It gives you a chance in the transaction.
People find it shocking when I say buying and analyzing a business isn't rocket science. And most of the preliminary things really can be done cheap or free. But there are times when it's better to call in the professionals. And analyzing the inventory is one of those times.