tags: Business, Buying a Business, Certified Public Accountant New York City, entrepreneurs, established business, NYC CPA, small company
Many entrepreneurs hold dear the dream of starting their own, unique company that embodies everything they have learned about the ideal business, whether it be a retail shop, a manufacturing firm or a service agency.
But other people who want to own their own businesses aren’t as particular about starting from the ground up. If you have some capital, or access to it, and you don’t relish the uncertainty of starting an outfit from scratch, you might consider buying a business that’s already operating successfully.
In our current economic recession, many business owners are selling for much less than they might have settled for a couple of years ago. This is a time to pick up a bargain business – if you are smart enough to identify the right firm for you and do the research required to make sure it’s viable.
Buying an established business can be a good alternative as long as you keep in mind that just because a company is doing well in the present, you can’t sit back and put it on autopilot once you purchase it. Small businesses – even those that are well-established – are inherently risky propositions, and always take a great deal of hard work and dedication to succeed.
Many times, a small company is only as strong as the person who established it and built it from the ground up. That’s because the founder spent years establishing an intricate series of vendor, supplier and customer relationships that can dry up surprisingly quickly when that person is no longer running the show.
Before you make an offer on a business that’s for sale, make certain that you do careful due diligence on it with the help of an experienced business broker and accountant on your side. Most entrepreneurs whose companies are on the auction block will not talk to prospective buyers unless they’re using a professional, since confidentiality and due diligence are so important during the sales process.
Find out why the owner is leaving: Is there a legitimate reason, or is there a possibility he or she wants to dump a losing proposition while there’s still time? Don’t let anyone unload a turkey on you because you didn’t have the smarts or the time to have the company’s books examined by a professional.
You can find “business for sale” listings are many online sites, including M&A Marketplace, http://www.mergernetwork.com, BizBuySell, http://www.bizbuysell.com, and BusinessesForSale, http://www.businessesforsale.com.
Try the International Business Brokers Association, www.ibba.org, to find a business broker who has a track record of helping other individuals buy companies in the same industry you’re exploring. Be aware that the process of buying a business can take several months – possibly up to two years – but once you get the right fit, it can be very rewarding, and financially lucrative.