We know the buying process can be complex, so we have addressed some common questions we have gotten from buyers.
A: Out of the many questions that will have to be asked and answered, two stand out as the beginning point of all possible transactions (in the order listed):
Is the business a good fit for me? The answer depends on a lot of factors: its location, its type and size, the competition that exists, the number and quality of employees, etc. But at the outset, you have to have some experience in what the business does, and more importantly, be able to see yourself in the business day after day... and like it. Unless that's the case almost no other question matters because no amount of anything else will satisfy you if you don't like what you do.
Can I afford it? As a rule, all business purchases require some hard cash. Exceptions to this rule are rare. So how much do you need? You should be prepared with at least 10% of the purchase price in cash. That needs to be hard cash you control and have access to. Even if your favorite uncle says he'll provide you with the cash down payment, and you have every reason to believe him, you need to get that in writing. Those kinds of promises can evaporate quickly, and no seller or bank lender will trust such a promise unless it's in writing.