Never Let Anybody Sell You A Business!
Ask anybody who bought a bad business and they will tell you: "I got sold garbage".
I know, you're probably thinking "nobody is going to sell me anything!". Well guess what? It happens all the time. Unless you put yourself in a position to BUY a business, and don't fall for the traps that sellers and brokers use to SELL a business, you'll wind up with a garbage business as well.
As you go about this process, you will be exposed to some very aggressive sales tactics. Sellers will tell whatever they believe you want to hear in order to convince you to buy their businesses. They will misrepresent their financials, make all kinds of promises about the future of the business, and will either hide, or come up with excuses for any problems.
Then you have business brokers. Remember, they represent the seller or the deal, not the buyer. Their goal is to sell you a business, and they are definitely not going to tell you anything to jeopardize the deal. And more than likely, they will tell you that the business is "an opportunity of a lifetime" for you. Just remember who they work for - the other side! Do not expect them to provide you with unbiased advice.
While you want to listen to what a seller or broker tells you, it is critical that you validate every single thing they say. If you take their word for it, you're going to get sold.
There is a lot involved when buying a business and in today's economy especially, there is so much more to lookout for and investigate in every business. You have to be on guard and know what you’re doing, because the last thing you want is to be sold a bad business. If that happens, you will have a financial disaster on your hands.
The positive side is that buying a good business is something that anybody can do. But don't fool yourself; buying a good business takes time. It takes effort. Above all, it takes very specific knowledge.
Knowing how to determine what type of business is right for you and where to find it, compiling an accurate valuation, arranging financing, negotiating deal terms that eliminates your risk, and uncovering every potential problem before you buy it, are just a few of the skills you must possess to be successful in this endeavor.
Although I have purchased ten businesses of my own (I've since sold nine of them) and have worked as a buyer's advisor and business broker in over 500 transactions over the past 19 years, I still learn something new with every deal. That is why I cannot comprehend how anyone with little or no experience would even consider trying to buy a business without first learning everything they possibly can about each phase of this process. Not doing so is simply reckless and borders on insanity!
It is just common sense that whenever you make any major decision, you should always equip yourself with as much knowledge as possible and surround yourself with experienced and advisors.
Our program ‘How To Buy A Good Business At A Great Price’ will provide you with all of the knowledge you need to successfully navigate your way through each step of the business buying process and every situation you will face along the way. Plus, the free ongoing expert consulting you receive from us will insure that you make all the right decisions.
To read the entire list of every topic we cover in our program visit our course outline page.
The material contains over 500 pages of simple-to-follow proven strategies plus legal agreements, automated valuation spreadsheets, interactive resources, case studies, and a business plan template required by all major lenders.
If you have any questions about our program or on the subject of buying a business, please feel free to contact me at anytime. It will be my pleasure to assist you.
Richard Parker
Diomo Corporation - The Business Buyer Resource Center
email me directly
N. America: 1.800.541.9195 ext. 83
International: 954.492.5508
