Since statistics indicate that only about one out of 17 buyers actually buy, it is important to be able to separate the serious buyer from the others. These points offer a good indicator of whether a person is really a buyer.
1. Prospective business buyers must understand that they will be buying someone else’s “baby.” This is a business that another person has built, nurtured and developed. It is a business in which the owner has spent many, many hours — one that has supported the owner and his or her family. It will be important to the present owner that he or she feels comfortable with a potential new owner.
2. There is the famous line that goes, “Show me the money.” Buyers shouldn’t begin the business-buying process unless they have the necessary funds or know exactly where they will come from.
3. Buyers think that when businesses are enjoying good times – they are overpriced. When economic times aren’t so good – they want to buy a business for way less than it is worth. Timing works both ways. There is a right time to buy and a right time to sell – when it is right for both the buyer and the seller is the right time.
4. There is always a risk in buying a business. If a buyer is looking for a sure thing – buying a business is not it.
5. Buying the right business generally takes time. Patience is required. However, one can’t be a procrastinator – when the right business comes along, one must be able to act.
6. Owning one’s own business is a big responsibility. There are usually employees to consider, customers or clients to attend to – and suppliers to work with.
7. Those who are considering buying a business should have a viable reason for doing so, should have discussed it with those who are involved and have a willingness to do what it takes.
8. Too many potential business buyers don’t have the courage to make that “leap of faith” necessary to actually pull the trigger and purchase a business. Many of them get to the edge, but can’t make the leap.
Unfortunately, many don’t realize they can’t until the process is about to begin.
9. Buyers – and sellers too – should seek professional help. The professional business broker has been there and can assist in making the transition a lot easier.