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Buy Y our Own Business

Over the years, I’ve added a sixth and seventh rule:

6. Buy businesses with few employees.
7. Generate repeat business from the same client base.

I’m willing to forfeit Rule 6 or Rule 7, but I won’t compromise—ever—
on my Five Golden Rules. You can’t, either.

Step 2: Know Where to Search

Once you know what’s right for you, finding the right business is easy. Most

people search endless listings of businesses for sale trying to figure out which,
if any, is right for them. That’s the wrong approach. Rule out ones you don’t
want and focus on the others. There are a number of sources for locating
businesses that are for sale.

Online

Online sources such as www.bizquest.com , www.bizbuysell.com , and www.
businessesforsale.com act as a clearinghouse for businesses that are for sale.
Search with keywords such as, “business for sale” or “buy a business,” and
search local, city, and state areas. In the listing, you’ll find business descrip-

tion and location, asking price and down payment, owner benefi ts (Seller
Cash Flow, or Adjusted Earnings, what the business generates), training,
contact information, and who is selling the business (the seller, or a broker).
Don’t ask for a lot of information in the initial contact. Instead, state: “ I
am interested in this business, and I am a serious buyer. Please send me the
necessary confidentiality agreements to sign so we can proceed.” Then make

a note of the listing number and the web site, if you don’t hear back within
48 hours, contact them again.

Newspapers

Choices may be fewer than online, but check your local paper regularly,
usually under “Business Opportunities,” in the classifi ed section.

Trade Publications

Most people overlook these. Once you know what type of business you
want to buy, get a copy of the industry publications and scour the classifi eds.

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