Questions that You Have to Ask Yourself When Looking to Buy a Business - VR Business Sales Blog

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Wednesday, May 20, 2009

Questions that You Have to Ask Yourself When Looking to Buy a Business

Peter King
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Changing economies always make both potential buyers and sellers nervous. If you're looking into buying a business, this is what you have to ask yourself:
  1. Will this business continue to be attractive to customers in the future as it has been in the past?
If the answer is yes, you can consider a business' performance over the last three years to determine the viability of your intended purchase. If one has three or more years of profitable performance, this will be a successful product/location mix.
 
You need to decide if the product will be viable in the future, and if so, the location should also maintain its strength. The only other factor is management and that will be YOU. If you are confident in your own abilities to run a profitable business then you have your answer. 

Comments

Response to: Questions that You Have to Ask Yourself When Looking to Buy a Business
James Sandtooth says
It's always better to buy a business when the market is down because the opportunity is there and most people are going to sit on the sidelines. If you're investing in the growth of a business during a economic downturn, it's only going to benefit you when the situation starts to rebound.

Response to: Questions that You Have to Ask Yourself When Looking to Buy a Business
Wilbur Barger says
It also depends on the area and the product that the business sells. If there is uniqueness and it's in a market that 's fairly untouched, the opportunity is there.

Response to: Questions that You Have to Ask Yourself When Looking to Buy a Business
Norm Lancaster says
See how the current owner has marketed the business and where the previous three years. See where he has pushed his product, and how large is his regular customer base.

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