Setting up with an altogether new premises for your business would require a huge financial backing along with enormous risks as well. Purchasing an existing business it a safer bet if you have limited means and you do not intend to risk your personal savings. Although the premises may not be equipped with all facilities as per your preference, yet you can economize on the cost factor to get your venture rolling in short span of time.
Step1 – Decide on the nature or type of business you wish to undertake. Do some introspection to check the compatibility of your abilities, expertise, experiences with the demands of present business. You cannot afford to be introvert or pessimistic if you really aspire to be a successful business because such attributes hamper the progress of an individual leading to decline in the business.
Step2 – Look for a business that is similar to your venture in terms of floor area, type of work carried out, the facilities included etc. Seek the opinions of your peers and family or check the classifieds to get a few leads on an ideal business work place.
Step3 – Scrutinize your prospects and the current business set up before buying it. Go through the company history and financial statements to determine its future prospects. Analyze other crucial aspects such as operating costs, competition, inventory, supply, number of staff etc. Probe into the reasons compelling the current owner to sell the business!
Step 4 – Take a casual tour around the premises of the business enterprise available for sale. If possible try to spend some in this business to get the hang of its operations.
Step5 – Negotiate the purchase consideration with current owner in terms of assets, liabilities, bad debt or goodwill to get the best deal. Finalize the deal after going through the terms and condition of the sales contract.