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By Kristi Leisinger – 01/11/10
Buying a business is arguably the best way to become your own boss. Starting a business from scratch or buying a franchise are other possibilities, but only buying an existing, successful business provides an immediate cash flow to get your feet on the ground and running.
Although there are many good businesses for sale, there are several critical steps you must follow to be certain you buy the right one, the first time.
- People who are serious about being in business for themselves have to realize that they will be the proverbial “chief cook and bottle washer”. Too many prospective business owners want to be the CEO of the business. Being the CEO of your own business does not mean that you sit behind a big desk and plan on how to spend the monies. It means you will be doing everything possible that needs to be done to run the business.
- Prospective business buyers must understand that they will be buying some else’s “baby”. A business that another person has built, nurtured, developed and has spent many hours, many hours making it work. It may be important to the present owner that they feel comfortable with a potential new owner since their reputation will be somewhat still associated with the new owner in the eyes of the customers. The buyer needs to consider who they are in the eyes of the prospective seller.
- Buyers should not begin the business buying process unless they have the necessary funds or know exactly there they will come from. Bankers are a lot tougher on providing business financing and the term “blue sky” is no longer in their vocabulary. Stricter loan requirements, higher buyer cash down and other economic impacts all have changed the way someone purchases an existing business. Know how much cash you can contribute and how much you will need to finance and research your options out well in advance, so when the right opportunity arises, you are financially sound and ready to buy.
- Buyers think that when businesses are enjoying good times, they are overpriced and when economic times are not as good, they want to buy a business for far less than what it is worth. Timing works both ways and there is a right time to buy and a right time to sell. When it is right for both the buyer and the seller, it’s the right time.
- There are no sure things in life or business. There will always be a risk when buying a business. Buying the right business usually takes time, energy and patience. However, one can’t be a procrastinator – when the right business ownership opportunity comes along, you must be ready to act.
Buying your own business is a serious step in your future –seek professional help to assist you in navigating through the details of purchasing a business. By owning your own business, you help in providing jobs for other people in your community and add significant value to their lives as well as yours and your family. Small business owners own and operate the local businesses that provide the goods and services that add to the richness of our life everyday. So what are you waiting for?
Kristi Leisinger is a Broker Associate with Legacy Real Estate specializing in Business Brokerage. She enjoys putting people together that share a common bond or need. Her strong work ethic and passion is foundational by shaking hands and building relationships. She is a good listener to reach the objectives of her clients and is a trusted professional to build lifetime relationships. Her background includes over 20+ years in the healthcare industry including medical administration, business development and medical sales. She has her bachelor’s degree in Health Services Administration and her MBA from the University of Sioux Falls. She is actively involved in Junior Achievement, Sioux Falls Chamber of Commerce, SME of Sioux Falls, Sioux Falls Business and Professional Women, Sioux Valley Optimist and National Association of Female Executives.
To contact Kristi call 605.321.2992 or email.
