There are thousands of businesses for sale. If you are serious about buying a business you better have a good look at yourself and your resources before you start searching for a business. There are two documents you should have ready:1) your financial statement 2) your resume. Normally these documents will be required by the business broker and potentially the lender and seller. This will also help to determine how much funds are available to purchase a business and what type of business can be realistically purchased. Most business purchases are financed (SBA, seller or other personal loans). Loans will not normally be available unless you have the related experience, the money for the down payment and working capital, and good credit. Therefore it is also recommended to pull your own credit report and credit score on the internet and have any errors corrected.
I already hear some of you having objections in providing financial information. The reasons may be a fear of loosing negotiation power or simply that you think you don't have to provide such information. First of all it is our experience that providing financial information shows good faith, allows us to target the right business, and not to waste time with the ones that are beyond your reach. Secondly, sellers are more willing to negotiate with financially strong buyers - specially if the seller is going to hold a note. More often than not buyers who refuse to show financial information and resume' do not have enough money or knowledge to buy the business they are looking at.
This is part 1 of a 3 part blog on Buying a Business. If you are looking to buy a business this year take time to be informed on what is expected. Celine Dufresne, owner of Murphy Business is author of the original articles and top in her field in being a Business Broker in Polk County. Call me if we can help you! 863-667-2627!