If you are beginning the process of buying a business, then conversations with business sellers will definitely be in your future.

You can find lists of questions to ask in many places, and although these traditional questions like “how much is the lease?” or “why are you selling?” are very important, there are some less-traditional questions that can be equally important to ask.

Why ask questions of the seller at all? Couldn’t they just be telling me what I want to hear? Isn’t it a better idea to let the numbers speak for themselves?

Yes and no. The hard facts, like the numbers in the books, like the contracts and client agreements – these can tell you much of what you need to know about a business and can bring forth facts that will be instrumental in your decision to buy or not to buy.

Buyers who don’t ask questions of sellers, however, are missing out on very important information. The person who is selling has lived and breathed this business for some time, and their experience, the reasons they’ve made the decisions they’ve made – this information can speak volumes to a buyer.

Why? It gives you a unique behind-the-scenes perspective you can’t see in black-and-white numbers on paper.

What kinds of non-traditional questions should you ask? Here’s three:

What parts of the business keep you up at night?

This one is important because the answer gives two very important insights. One, it shows any problems that might not be readily apparent in the books and two, it will give a buyer a chance to see what might need to be addressed early on in their ownership. 

If you could start over from scratch, what would you do differently?

This question also gives two insights. First, like the previous question this one will highlight any issues with the business. The seller will probably express that they would make changes to avoid the problems they currently face. Second, it will give a buyer fantastic advice as to the changes they could make right out of the gate to help the business grow in the future.

What are you going to do if the business doesn’t sell?

If a seller answers “close the doors and walk away”, then a buyer needs to take a closer look at why the current owners would be willing to give the business up. Is it because of a personal issue that they must attend to like moving to another state to care for family? Is it because of a health issue that would preclude the seller from performing their daily duties? Is it because the business is teetering on bankruptcy?

On the other hand, a more positive answer to the “what if it doesn’t sell?” question like “keep the business running and growing until I find the right buyer” says a lot about the health of the business and the current owner’s faith in the future of the business.

Asking these non-traditional questions and even coming up with a few of your own will be very helpful in determining whether or not a business you are considering is right for you.They also make it possible to see past the black and white numbers to see what life has been like for the seller (and what life will be like for you should you buy). Ask great questions and you will have a far better chance of finding the right business for you!

Have you started looking at businesses and have more questions about the kinds of things you should ask? Do you need help figuring out what questions to ask for a particular business? Ask us! Please feel free to leave comments or questions here and we will be happy to help.