Buying a business is a big decision in assessing your preferences, talents, and ability to press on with the business even in tough times. Picture the lifestyle that you can sustain. Think about what you can afford. Look into businesses roughly in the price range of 10% cash down. If you don’t have 5-10% it might be difficult to get into that business without special circumstances.
Be sure to assemble a team of personalities to help as your sounding board. Include those that push the gas pedal (yes, go!) and others who will help you brake (no, stop!). If you put just one or the other on your team, you might make impulsive decision or end up with analysis paralysis.
Determine how you’ll learn to run the business and keep in mind that the employees will likely stay with the business and you can learn from them and the owner.
Pace yourself. Sometimes evaluating too many businesses at once is like sniffing too much perfume- you need to cleanse your palette, so keep your objective Selection Criteria in front of you to stay the course:
Entrepreneurs take many approaches to due diligence, but here are a few common documents and steps they take. When you consider how to finance a business, look into a combination of personal investment, friends and family, seller financing, SBA Loans, Conventional loans and even ROBS where you convert your 401K into an investment into your own business.