Some people prefer to build a business from the ground up, but that can be a lot of work and some may not be up for the task. Buying a business that is already established is often the better option for some people. Even when you are buying a business and someone else has done much of the legwork, there is a good amount of work that goes into it. You may not be familiar with the process. Kajioka & Associates Attorneys at Law is here to share some tips to help purchasing an existing business be a smooth process.
What is the Right Small Business for Me?
In this process, you may want to choose a business that has you excited. This is going to be your career and you don’t want to dread it every day. You are working to make it successful. You should choose one that you have taken special interest in and built a skill set doing. When you don’t choose the right business or one that you are familiar with, you could end up overpaying. You don’t want to buy a business that will leave you with a huge learning curve for months afterward. Choose one that interests you and has you enthused.
How to Find Businesses for Sale
The first tip for finding a business to buy is to keep your search close to home. The easiest way to find the right business is to look at your current job. If you are employed by a small business owner and enjoy the job, you can inquire about the option to sell to you. Many businesses never hit the market because they are often sold to someone in house first. Other great places to look include newspaper or online ads, business suppliers, real estate brokers and business brokers.
Research the Business’ History & Finances
Before you purchase any business, you should do your homework. You don’t want to purchase a business only to find that it has been failing financially for the past five years. If the seller is hesitant to hand any documents over for review, this is a big clue that you would better off looking somewhere else. Here are some documents that you should thoroughly examine.
• Cash Flow Statements
• Balance Sheets
• Accounts Payable & Receivable
• Employee Benefits & Contracts
• Major Contracts or Leases
• Any Past Lawsuits or Settlements
Business Attorneys & More in Greater Las Vegas, Nevada
If you aren’t sure what to look for when buying a business or how the process works, having the help of an experienced business organizations attorney like our team at Kajioka & Associates Attorneys At Law makes all the difference. We have the background and experience needed to assist you in successfully buying a business. Before your meeting with our attorneys, it is best if you have gathered as much information about the business you are interested in buying so we can further help you in the process. This would include any partner information, management strengths and weaknesses, percentage of ownership and so on. Call us for further information and assistance in the process.
