Be an Educated (Business) Buyer
Buying a business is one of the biggest decisions someone makes in life. We’ve always said that here at Entrust. We believe that if you decide to take the step to purchase a business, you should do research, know what’s involved, the process, know what to expect–be an educated buyer. GlobalBX posted an article titled, “5 Major Mistakes When Buying a Business” that briefly tells readers the five major mistakes to avoid:
1. Don’t rush through due diligence. Make sure the information you have been given by the seller is accurate.
2. Don’t forget that you will need a cash reserve after the purchase of the business in order to run the business.
3. Don’t assume that cash flow from the business will cover the expenses.
4. Don’t overpay for a business; make sure that the price you pay is based on the value of the business at the time of purchase.
5. Don’t put everything you own at risk in order to purchase a business. Consult with the proper professionals (attorneys, accountants) to make sure that you use the right entity structure when you buy your business.
For the full article on the top 5 mistakes to avoid when purchasing a business, click here.