How To Buy A Business In Michigan
Research Options– How Do I Buy A Business?
– Numbers Every Buyer Should Know
– Today’s Market Opportunities
– What A Business Broker Does
Find The Perfect Fit– Established Vs. Startup
– A Business For Your Personality
– Franchises: The Pro’s & Con’s
– Basic Questions Buyer Should Ask
Agree On Terms– Proper Business Valuations
– Negotiating Positively Vs. Negatively
– Where True Value Comes From
– Discover Hidden Business Issues
New Vs. Existing Businesses:
Whats right for me?
Either way, we are here to help.
-Valuation Reports & Comps
-Business Advice & Guidance
How do I know if a business is a good deal or not?
There are many places that can give you good examples of rules of thumb for the industry, or you can pull comps if you have access to the right kind of databases. But, as any professional broker will tell you, business valuation is truly an art form. There are so many different variables that need to be considered; there is not really a one size fits all solution here.
Am I going to be good at owning a business?
Probably not at first, so be prepared for that. If this is your first time buying a business, get ready for a steep learning curve ahead of you. The numbers do not lie, and most small businesses end up failing. Perseverance and a strong support structure are absolutely crucial, even more so then experience or intelligence. Make sure that you are commited to making the business a success no matter what it takes and that you have people that you can lean on when times get tough. Many mistakes can be avoided by listening to those that have already gone through similar experiences. Read as much as you can and ask for advice from anyone willing to mentor you; keep an open mind as the best advice can come from the most unlikely of places.
Should I try to run the entire business myself to save money?
The short answer is as much as possible. You do not want to kill yourself by working 80+ hour weeks, it can be bad for your health and make you perform poorly. As a new owner, it is important that you do as much as possible to learn every last aspect of the business. From cleaning the toilets to the tax consequences of financials decisions; you need to understand each individual tasks and how they related to the structure as a whole. From there, you can start to make improvements and hire employees selectively to handle some of the work that you are comfortable delegating.
Are there too many other similar business in the area?
You always want to do a thorough competitive analysis before purchasing a business. Just because the market place is crowded does not necessarily mean that you can not be wildly successful yourself. In fact, it just means there are people actively looking to be served, and that there is a profit to be made somewhere. Try to determine how many people are seeking the particular service, and then take a closer look at some of the competitors. Are they going to be stiff competition? Do their establishments appear clean and well run? Take careful notes so that you can then compare them with your own business plan. If you can differentiate yourself enough, that alone should give customers a good reason to head your way. Beyond that, some good marketing will do wonders in any sort of environment.
Should I bring on a partner?
Only after very carefull consideration. Ideally, you can buy a business by yourself and hire the people that you need to manage and staff it appropriately. This will give you a lot more flexibility and the ability to makes changes on the fly. There is a lot more responsibility involved riding solo, but you are also afforded a lot more freedom. On the other hand, for many people buying a business with a partner can be a lot of fun and very profitable. I helps if you have worked together in the past so that you know their habits and ethics. The last thing you want to do is jeopardize any personal relationships by jumping into business together prematurely. Even if you decided to go down this route, consult an attorney so that there is a clear cut exit strategy in place in case things take a turn for the worst.