Before You Buy A Business… – From John LaMay
Before buying any business, a buyer must ask lots of questions. If there is ever a time where one should not be shy, it is when buying a business. In a recent article from Entrepreneur magazine, Jan Porter explored questions that prospective buyers should be asking before signing on the dotted line. Let’s look at 5 important questions that buyers should get answered.
- “What are your biggest challenges right now?” The fact is this is one of the single most prudent questions one could ask. If you want to reduce potential surprises, then ask this question.
- “What would you have done differently?” Every business owner should be an expert regarding his or her own business. It only makes sense to tap into that expertise when one has the opportunity.
- “How did you arrive at your asking price?” Having to defend and outline why a business is worth a given price is a great way to determine whether or not the asking price is fair.
- “If you can’t sell, what will you do instead?” The answer to this question can give you insight into just how much bargaining power you may have.
- “What skills or qualities do I need to run this business effectively?” Couldn’t be any more important. A buyer must be a good fit for a business or otherwise failure could result.
When it comes to buying a business, questions are your friend. The more questions you ask, the more information you’ll have to help you mitigate the risks you are assuming.”
Business brokers are experts at knowing what kinds of questions to ask and when to ask them. This will help you obtain the right information so that you can ultimately make the best possible decision.
We look forward to helping you soon.
John LaMay and Copyright: Business Brokerage Press, Inc.