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How to buy an existing small business, and get a good deal

When you are thinking about buying a small business, one of the first things that need to be done is to figure out what kind of business you are looking to run.Do you have background in the existing business?Is this the type of business that you are excited about, the consumers are excited about, and has a long future ahead?

To find a good deal on a business it is probably best to start by asking people you know if they know of any businesses that are for sale.Some of the best deals to be made are through friends, business acquaintances and word of mouth.

Once you find a business you are interested in, you need to make sure that you don't let your emotions make the decisions for you.Buying a business out of excitement can be a sure way to not get a good deal.If the seller sees you are excited, they most likely won't be doing a lot of negotiating with you.Plus, things always may not be as great as they seem, so whatever you do make sure you always get to do a thorough walk through of the place.

If you are having a difficult time finding the right small business for you to buy, you can always use a business broker. The business broker is the real estate agent of the business world.They will have a list of small business for sale and will be able to help you with negotiations. Using a broker may be a little more expensive at first, but if you get yourself a good business deal, then it will be well worth it.

A few things to look at when shopping around for your small business are:
- Sales records
- Past years financial and tax statements
- Reputation of the business, customer relations and patterns of buying
- Costs of product and rates of return
- Costs of advertising, insurance, and employee salaries

When you are finally ready to make an offer on a small business, it is most important to be organized and detailed.Get an idea of the businesses current market value. You know before making your offer how much you can spend.You will need to have a set high price in your mind and then be prepared for negotiations and act accordingly. Also, you will want to make sure you include any type of furniture, inventory, or any other assets that you want into your offer.

You want to make sure you are aware of all liabilities, accounts receivable, accounts payable, and all debt.The best way to make sure you get a good deal on buying your business is to take your time and get as much information as possible.

A good financial deal may seem like something you need to hurry up and jump on, but there may be underlying reasons that the business is selling for such a great price.
Always keep in mind that you get what you pay for, and in business that can be very risky.Use friends, accountants, or attorneys for second opinions and suggestions.It is easy to get excited about things when you are by yourself with the seller and this is your dream coming true.

The only way to assure that you are getting a good deal on your small business is to not have any surprises.If you take your time, investigate, get other peoples opinions and know exactly what you are buying and getting into, then you will know you got yourself a good business deal.

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