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Need advice. First time buyer...

I'm looking to purchase a business sometime in the near future but have little experience. Does anyone have any advice to help get started?

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Answers (2)
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Freedom Business Brokers
Orange County, CA

Justin
If you are planning to do some busines and if you are first time buying a business buy that is running and established and has a track record of sales and success for atleast 4 to 5 years.
You should not think about starting a new business of your own otherwise this will be a recipe for
disaster.
How to select a business? If you are going to involve yourself full time select a business which you
enjoy doing it. Even if you have to take some classes for it do it .Most naive people get bored in first
few months and become a failure. So if you know something you enjoy doing it.
Start it from easiest like a retail store or Liquor store or minimarket if you don't have enough money
to buy a big business.An ideal business for you will be one where employees are coming with it.
So you don't have to learn it quickly and you can concentrate on accounts and existing clientelle.
But try to learn all aspects of the business so that you can control and take charge and employees
will not play games with your lack of knowledge.
Study the demographics of the surroundings whether there is enough market for your product.
Look for population and apartments or houses and their architecture. That tells a lot. Some cities
are comprised of older population. Their demands and needs are different from young generation
Notice the class of the people and their ethnicity.For example if there are Chinese or Veitnamese
in majority.Don't buy a general restaurant or Liquor store there as they prefer their own food and they
don't consume that much liquor as the other counterpart do.
Choose a visible location preferably on a prime corner witha formula strip center with an anchor
like a big grocery store or a chain franchise.Count the traffic pedestrian or numbers of cars for few days Hire a business broker or consultant when buying a business. He will tell you all the pros
and cons of that business if he is mature and open minded.
Study the existing lease carefully. You should have atleast 3 to 5 years remaining lease
with an assignment clause so that if you don't like the business you could easily get out of this lease.
Check the sales records carefully mainly the buying invoices.
After you have bought the business don't make sudden changes in it by firing employees unless you get familiar with the business.
After 5 or 6 years sell the business as you start burning out which may reflect in sales decline.
Good Luck!
Sid0653@hotmail.com

Feb 10, 2011
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Justin,
Feel free to give me a call. I am a business intermediary in Florida and do seminars on buying a business. I can email you the slides and go over the basics on the phone. Won't cost you anything but time.

Sincerely,
Michael Mensch, CBI
Office: (321) 255-1309

Feb 9, 2011

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