Ask the Right Question Before Buying a Business

Posted by ivanpw under Strategy
From http://www.noobpreneur.com 4255 days ago
Made Hot by: businessluv on April 6, 2013 8:41 am

Before making the financial commitment in buying a business, you need to ask the right questions. Here are the reasons why...

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Written by HeatherStone
4255 days ago

Hi Ivan,

The greatest risk when buying a business is that you will purchase something that doesn't return on the investment. There are so many factors affecting this, but the key question is whether you will be able to successfully operate the business in a way that will generate the same revenue as the current owner. Many times owners may understate the amount of work they put into the business. And if there is a special talent or skill the owner possesses that is integral to the company's survival, then this may be hard to replicate. Also consider the degree to which the owner's business connections are responsible for his or her success. To what degree are these connections transferable with the sale of the business? In other words, are they the business's contacts or are they the owner's alone.

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