If you are a buyer in the small business market, you will likely have many questions for the seller of a potential business. If you are a business seller, these questions should be something you prepare for as buyers will expect you to have answers.

These are the types of questions that will likely need to be asked and answered, so if you are a buyer – take notes. If you are a seller – try to come up with the answers ahead of time:

Can you describe what your business entails?

When and how did you buy/start the business?

What do you sell/ what kinds of services do you offer?

What do your daily responsibilities look like?

What is something that you don’t like about your business?

Do you like running your business?

How long have you been trying to sell your business?

Are you able to leave the business in the hands of the staff for vacations or family needs?

What do the numbers look like for the past three years?

Who is your largest competitor/ how many competitors are in your area?

Is your industry doing well?

Has the market recently changed?

Iis your share of the market growing or declining?

What do you think can be done to grow the business? Why aren’t you doing those things?

Are any of the members of your staff essential to the business? Is there anyone that needs to be replaced?

What number of employees do you typically keep on payroll?

What kind of non-compete agreement are you willing to make?

Does the business come with any property?

What does your lease look like?

Do you have a good relationship with the landlord?

Are you willing to agree to a training/consulting period after the business is sold?

And the biggest question – Why are you selling?

A caveat for both sides here – if you are a buyer, be respectful with the kinds of questions you ask (personally intrusive questions meant solely to satisfy your curiosity are inappropriate to ask, for example). If you are a seller, be forthcoming with answers to questions about your business. Business transactions are inherently complicated, and in the vast majority of cases both buyer and seller will have to work together during a training period after the business is sold. Keep the relationship amicable, as it will make this transition period more pleasant for all.

Are you interested in buying a business and want to make sure you ask all the right questions? Are you a seller who is looking for help with answering difficult questions about your business? Please feel free to leave a comment or question here, and we will be happy to assist you with whatever you need.

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com