subject: Getting Money To Buy A Business [print this page] Most people get the idea of starting up their own business, or they have just heard a business for sale which seems like a dream opportunity for them. They may be dreaming to get a business like that for yourself but your dream comes to a clash when you realize the amount of resources require to buy a business. Ill be frank and say that most people think raising money for a business is a difficult task; well actually it isnt, especially if you are planning to buy a business.
The first thing to do is to put together your business plan and prospectus for your new venture, after all you do have to take the first step. Be sure to include all the personal information about you that might relate to the business. Include a resume of your background, education, job training, experience or anything that will relate to the business you want to purchase. Make sure to include any sort of personal loan which you had in past. Be ready to explain in detail exactly how much money you would need and what it will be used for. If it is for a new business, your business plan should include a projected profit and loss balance for the first year of operation. This would also include the utilities, salary, office expense and loan payments as well. Anyone loaning you money would always want to see how you are planning to pay back the income.
If you are contemplating purchasing an existing business, your business plan should include a profit and loss balance sheet for the past six months as well as a projected future showing how the new money will produce additional income. Anytime you are projecting expenses and incomes for a business plan, it will be advantageous if you base your expenses on the highest averages and the income projections on minimal figures. In this way, you will not be surprised by a slow period or unexpectedly high expenses. You will be better prepared to handle those extreme "ups" and "downs" inherent in any new business.
Most people are not aware of this but there are many business owners who would expect a long term payment than paying everything at once. Why you may ask? Well that is because of income tax reasons. But that provides you with a great opportunity, to pay the owner in installments.
Know this that investors use their money to make more money. They know that there are risks involved with investing in new business ventures or with a person purchasing an existing business who may not have much experience at running a business. In order to attract such investors or convince them to put up the money you need, you will have to be very persuasive by perhaps offering him an opportunity for larger than normal profits on his money. You must also be able to back up your claims with marketing research and other means laid out in your business plan.
