Buying a business can be tough.
You have to sign non-disclosure agreements, go through pages and pages of documentation, have seemingly endless meetings and conference calls, deal with bureaucratic red tape for licensing and permitting, negotiate with sellers and landlords – all while making the massive decision of whether or not this business is for you.
The process might seem difficult, but it’s not impossible. Businesses are inherently complex, and business transactions involve a lot of moving parts and people.
What happens far more often than it should is a buyer gets fully immersed in the process, decides it’s too aggravating and throws in the towel – leaving a perfectly good business ownership opportunity behind.
If you are considering business ownership, you should consider this – if you can’t handle the stress and rigors of buying a business, you probably can’t handle the stress and rigors of owning one either.
Entrepreneurship is just as tough as the business buying process, and it’s not for everyone. If you are considering the leap into business ownership you need to take a moment and decide if it’s the right move for you. Owning your own business is incredibly rewarding, but those rewards come with a lot of work. If you are ready, willing and able to do that work then you can easily survive the business buying process by having on major thing – patience.
Here’s why. It will take some time for you and your broker to decide what types of businesses and what industry sectors will best suit your goals for business ownership and your practical experience. Once you know what you’re looking for you and your broker will have to search for businesses that will fit your budget too. Once you’ve found a few promising candidates, you will need to sign non-disclosure agreements and then wait for the seller and seller’s broker to get you some cursory information on the business. If you like what you see, you can make an offer on a business – but then you will have to wait for the seller to either counter your offer or accept it. If the offer is countered, it will probably take some time to arrive a price both sides can agree on. An accepted offer means due diligence can start, but only when the seller has provided all of the requested documentation. Getting all of the requested documentation also takes time, as a seller is not only trying to round up all of the paperwork you’ve requested, they’re also trying to run their business too. After due diligence, the final purchase contract will take some time to put together and a new commercial lease will need to be worked out with the landlord. You will also need to deal with obtaining or transferring all of the licenses and permits the business needs.
See a trend? Everything takes time, and as such everything takes patience. If you can stay patient and focus on the goal of buying a business, then the process will work like it should.
Are you looking for businesses to buy but feel like the process might be too overwhelming? Would you like to know more about what it takes to buy a business? Please feel free to leave any questions or comments here, we would be happy to help.
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