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Alarid's advice also works for persons who want to sell their business. His points to prospective buyers remind you of the preparations and records that must be in order for you to have the best chance of selling your business, and of the procedures usually followed. Here they are [read these points for insight as a prospective seller]:
All businesses are for sale. The next time you go into a business that looks prosperous and interesting to you, ask who the owner is. If he's on the premises, go into his office; if not, phone him from the nearest phone booth. Ask him, "have you ever considered selling this business?" The answer is always yes. Tell him you're interested, plan on seeing him a number of times for informal discussions.
The owner will ask you, "how much can you put down?" Reply that the amount put down depends on the financial status of the company, but that you'll need some owner financing. Usually he or she will say that if you will put 20% to 30% down, he'll provide financing. Be sure to ask for twenty- to thirty-year financing. Don't worry about not having the down payment in hand, you will be asking the suppliers to help you with that as described below.
Many new businesses fail, so avoid this obstacle by buying a proven successful business.
Make sure the company makes a good profit; it's easier for you to purchase a company that produces $200,000 to $300,000 a year profit than it is for you to purchase one that makes only $10,000 a year profit.
Is the company run by a manager? Has he been there for more than five years? If so, ask him if he'll stay if you buy the business.
Besides going through the books, talk to his suppliers. Ask them what they think about the prospective business. Suppliers can often tell you if a business is profitable...and can usually give you insight into its reputations.
If suppliers are enthused and their reports are favorable, tell them you want to buy the business and will need some "working capital" (this is your down payment but you should never call it that). You may need to grant concessions such as the exclusive rights to supply to you. There is a large variety of inter-business financial agreements. Usually one will fit your purposes. This is the largest source of business loans in the U.S. today.
That's your approach in a nutshell. You can create many variations of the theme. There are a number of seminars that teach this basic method. Watch for one in your area." -- PhotoStockNotes, September 1997 --This text refers to an alternate Paperback edition.
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Most Helpful Customer Reviews
22 of 23 people found the following review helpful:
5.0 out of 5 stars
This is a must read for anyone staring a new business!,
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This review is from: Free Help from Uncle Sam to Start Your Own Business (Or Expand the One You Have) (Free Help from Uncle Sam to Start Your Own Business, ed 4) (Paperback)
The book was very informative, precise and easy to follow and understand. It gives you a very clear understanding of what's available to you and what resources to check. It has helped me after one whole year of trying to figure out how to start my business, do just that. Everyone should read this, even if you already have a business of you own, it can help in many ways - Who doesn't need money and advice?
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