Many types of commercial business are available for those interested. You may choose to operate an insurance, property management, or bank, for example. Other people may choose to run a farm, marketing agency, or retail outlet.
Many entrepreneurs choose to startup their own company. Others look at purchasing a commercial business for sale. Whatever the choice, each comes with its own set of advantages and disadvantages.
Purchasing a company can be quite an adventure. In general, be sure to think it through and don't necessarily make the first purchase that seems like a good one.
When first investigating a company, remember you are buying into a certain lifestyle. Different businesses come with different hours. If you buy a restaurant, you'll be working nights and weekends.
If you buy a gas station, you can pay someone else cheaply to do the work for you. Once you've decided what type of lifestyle you would like to lead, begin seeking financing.
Sometimes banks will offer you financing. Research your potential purchase thoroughly. Make sure you can clearly demonstrate a high likelihood it will be profitable under your ownership.
If you can do this, you are more likely to receive financing from the bank. Also, try offering a down payment.
Banks, however, do not often approve financing. If this is the case, attempt to negotiate financing with the seller.
Beware of any brokers present during the sale. Even though most are honest, the broker most often works for the seller.
Don't attempt to go through the process on your own. Having the help of an attorney and accountant you trust is very wise. They can rescue you from a potentially disastrous deal.
Consider tying the final sale price to the retention of existing customers. In many cases, the sale of a business is based on retaining a certain number of customers for a period of time.
Finally, make sure the seller stays on during your first few weeks of ownership. He or she can help make this period much smoother. Going it on your own might work, but you'll make many unnecessary mistakes.
If you're thinking about buying a commercial business, these tips should help. If you're selling a commercial business, then these strategies should be helpful also.
About the Author
This Wiki was written by Andy White, CEO of Biz Trader .