WHAT KIND OF BUSINESS DO I WANT? Some of us have a very definite idea of just what type of business we are looking for. For others, the answer may not be so apparent. Whatever business you decide on, know exactly just how you will be spending the majority of your working time. How will you be functioning? It is important to know what the owner of this business does for 8 to 12 hours a day, 5 or 6 days a week. If you decide to enter a field that you are unfamiliar, it might be a good idea to seek employment in that industry to gain some working experience before buying the business.
Before you attempt to look for a business, you must first decide on certain characteristics of your targeted candidate:
The size of the company - What size of an operation can you handle? Do you want a shop of 10 to 20 employees, or are you a one man show? Don't bite off more than you can chew.
The industry - What type of industry interest you? You should have a general idea of the kind of industry you would enjoy working in. After you decide, try and stay focused in that area of interest. Although your final choice does not have to be exactly what you set out to find, it should be close to it.
The location or geography of the business - How far are you willing to commute each day? Consider bad weather and the like, in addition to the travel time from your home to your place of business. If, because of the nature of the business, it can be moved easily from one location to another without much difficulty or adversity, it may not be an issue.
Profitability & Afford ability - How much income is required from the business to continue paying your mortgage, personal telephone, insurance, food and clothing, etc.? The acquisition should be able to provide this, at least. Most buyers who are replacing an existing business or job must generate this amount of income therefore, an existing business is usually their first choice. Make sure your can afford the acquisition. Don't plunk down your last dime on the down payment of the business. You will need some amount of working capital for the new business and you should have a cushion for all personal expenditures if the business should encounter any unforeseen problems.
Business Brokers in Delaware County Chester County and Montgomery County, PA.
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