There are whole list of things that you should know before buying a business. For most of the people especially the for the new comers in the business arena, buying a business is a better deal than starting from scratch. While buying a business someone has already done setup a base that you can build on like customer base, recruiting employees, working on a lease. This doesn't mean you get everything and no work is required from your side. Enough research is required from your side to make sure that you get what you need.
It always good to look for a business that you have experience in the past or have enough technical know-how or the industry in which your education was based on or based on your hobby. If you don't know the industry in which you are trying to buying a business it's easily possible you may end up spending more money. This will also lead to a steep learning after buying a business.
You can also choose to buy a business that excites you. It will be easier for you to succeed in a business where you enjoy working or which you can consider as a nice hobby.
Selling a business
If you are planning to selling a business here are some practical steps that you can follow to succeed in selling a business.
1. Finding a realistic price range: While selling a business if you price tag you may scare away buyers and if it is too low you may end up loss. You need to spend time to arrive at a right price tag.
2. Understanding the tax implications: Tax implications are to be considered as it might be a big bite on your sale income. You may need an auditor's help to assess the tax implications.
3. Making your business ready for a sale: This not only involves making your premises looking good but also your numbers in your balance sheet or profit & loss accounts.
4. Looking for potential buyers: A well-known business can be easily sold by spreading the word, otherwise you will need to reach to a wider audience. You could also hire a business broker.
5. Negotiating the deal: This is the crucial step while selling a business that will determine whether you end up in a good gain or loss.
6. Signing a Sale deed: Among other things your sale deed will have to contain an exhaustive list of things you are selling and the price and the payment terms that the buyer has to adhere to.
7. Closing the deal: Selling business ends with the closing meeting in which you hand over the business to your buyer.