You have assets that you can sell, but I’m here to tell you that you aren’t selling or buying “hard assets”. Heck, you can buy equipment anywhere, anytime. You’re really selling or buying “soft assets”; your ability to build a team, sell, market, satisfy, create relationships, forge loyalties, make a profit and grow the business.
There’s no question that research and understanding your finances are important. Going into business requires money and what goes on around it. However, if you want to borrow money to help fund your new business you are going to need at least 4 things. If you can’t be bothered getting these together you will not be taken seriously by sellers, landlords, business for sale bangkok, lenders or other related parties. Or worse still, you’ll be taken seriously, asked for these documents and when they found not to be in order, your dream will be shattered.
The greatest challenge for many Business brokers online is they don’t know the right way to ask for referrals. My first five years in business as a financial advisor, I had the same challenge. Just like the construction company, I would ask my clients, “Who do you know…?” This was met with many blank looks. It was such a broad question that no one knew how to answer it. They had a difficult time coming up with names.
You can also choose to buy a business that excites you. It will be easier for you to succeed in a business where you enjoy working or which you can consider as a nice hobby.
He bought the business for more than I suggested because he saw where he could improve the business instantly. The profit turned out not to be $500,000 as the seller guaranteed, but exactly $350,000 as I had determined. David took over sales and marketing and within 1 year had the company profit up to the $500,000 he was promised.
And thirdly, you could ask for references. I would want to know what they sold before and want to talk to a few happy clients. So I think if you did those three things you would be in pretty good shape.
More important, learn the key legal and financial points to purchasing a business such as the lease, bulk sale transfers, basic due diligence requirements, profit and loss analysis, and lessee’s responsibilities. Learn the difference between an assignment and sub-lease, a personal guarantee and UCC-1 financing statement.
Now do this exercise using your own company as the hub. You can use relationships that you work with as spokes, then go to each of those relationships and show them how to do this using their companies as the hub. As you help other business owners come up with sources for referrals, you can combine your lists of categories and names with other business owners and start working together. And when you help each other find common ground with people on your lists, imagine how many referrals that you could get!