PROCESS of Buying a Business:
The location of the business has to be acceptable -- in regards to where the
buyer lives and in regards to the perception of the buyer of the area
the business is located.
1. is OK, then the buyer is looking at particular types of businesses and will
not accept any businesses that do not fall in to those particular types.
1 and 2 are OK, then the buyer has in mind a certain amount of money that the
business needs to make on a monthly- annual basis. There needs to be
sufficient income out of the business to -- Pay the Loan payment -- Pay the
buyer for his needed living expenses -- and give a return on investment of the
cash money invested to get the Loan.
1, 2 and 3 are OK, then the price has to be right and fair. It is always
too high, so go back to 1. haha -- just kidding, but it does happen quite
95% of all people who are looking to buy a business will never buy
a business from anyone!
That is pretty much a fact, the percentages range from 90% to 99% depending on
who writes the article. I have been selling businesses since 1984, I can
attest to that.
There are a whole bunch of reasons why 95% of the people who get
through 1, 2 and 3 do not buy a business. Mostly lack of confidence and
worry about competition kill a lot of them. Financing is also a big
killer due to the buyer having to risk everything and the spouse will not agree
to that. Another big one is false
assumptions about the business in some manner.
Those false assumptions are usually based on opinions without research
and by looking at the worst-case scenario of the situation and taking that as
the norm. Most everyone spends their
time looking for problems and they fail to see the opportunities.
Oh well, we can only try to help those who will try to help
I try to treat everyone as if they are the 5% who are going
to buy a business, can't tell who is or who is not.