The first question to ask is “Are you really ready to purchase a business?” The answer will depend on one main aspect- finances. Do you have the money you will need for at least a down payment already in place? If you are looking to expedite the business purchase process, it is typical that the larger the down payment you have, the faster you will be able to make a business acquisition. Fifty percent of the purchase price is ideal, although business transactions do close with smaller down payments. The reason for a large down payment is to give confidence to the seller. If you are not offering a full price payment, the seller will likely be giving you some kind of seller financing package. A seller wants to know that you will be able to make loan payments, and a reasonable down payment is the first step to creating this trust.
Once you have your down payment in place it generally takes about six months to acquire a profitable and solid business. Remember that six months is an average, and the timing will greatly depend on what specifics and locations you are looking for. You will need to give these desired details to your business broker in order to expedite the process as well.
A key to success in business ownership is practical experience. A common misconception is anyone can run any type of business, as long as they own it. Nothing could be farther from the truth. You must have relevant experience if you want to be able to compete in the market you are entering. Talk to your business broker about the areas where you have expertise so they can match you with an appropriate business.