Queens professionals I speak with at networking events often say things like, “I’m tired of making someone else wealthy — I don’t mind putting in the hours if I worked for me.” If you are set on working for yourself, then buying a business may be best.
Consider what you like and what you do best. Are you a people or data person? What motivates and excites you?
Perform a financial review of any business you are considering, not limited to your accountant reviewing the company’s finances. Acquire a Dunn & Bradstreet credit report on the company to evaluate its track record and double-check the company’s reported numbers it gave you. Any company you would consider will have a “due diligence” package at your request.
This will include tax returns, contracts held, office or store leases, articles of incorporation, etc. If a business does not offer these, do not waste your time. Ask, “Why are you selling this business?” A good reason is usually retirement, but be cautious during this part of the process. Make sure you are not seeing a marketed business that is the equivalent of buying a Mercedes-Benz without an engine.
Be sure money can be made realistically. Consider the time that will be absorbed for the money you will be making and how it will change your life. I have met many business people who cannot run their own businesses. If you are considering buying a restaurant or deli, physically go to them and see how busy they are.
So How’s Business regarding buying or owning your own business? Take a calculated risk here and there. You will have days when owning your own business is the greatest thing and some days you will ask yourself, “What did I get myself into?” When buying a business, no words scream greater than “due diligence.”
Contact Joe Palumbo at 516-297-4034 or firstname.lastname@example.org.
©2009 Community News Group
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