Tuesday, 17 July 2012
Consider using the services of a business broker
There are always details to every transaction that are best handled by somebody who knows just what to do.
The allure of being a business owner, the opportunity to be the master of your own destiny and your investments can be very attractive.
The risks of owning your own business should not be understated. Business opportunities by their very nature carry risk including obsolescence or reduced demand for service or product, regulatory laws, ineffective management, changes in the local or national economic condition, and many others.
By purchasing an existing business instead of trying to start one from scratch, a buyer can dramatically minimize the risks associated with starting a brand new business.
When entrepreneurs decide to buy a business they should consider using the services of an expert. A professional business broker can help by showing a buyer a variety of businesses that are legitimately interested in selling and help through the purchasing process.
They will be able to explain the owners’ motivations for selling and be able to provide pertinent information regarding the financial performance, equipment, inventory, product lines, customer base, etc.
A professional business broker will be able to draft a letter of intention that covers all pertinent issues (i.e. non-compete agreements, trade name rights, leases, due diligence), plus any unique contingencies that are relevant to the transaction.
When making the decision to buy your own business, using a professional business broker will allow you to concentrate on the important matters associated with operating the business.
Do you have small business questions you would like answered about this article or others? Please visit www.VRWindsor.com or call 519-903-7807.
William Sivell is a sales representative of VR Windsor Inc., Business Brokerage; his blog appears every Tuesday.