Buying a business can be one of the most rewarding things you will ever do. This week we are talking about 3 things you should prepare as a buyer, before you start looking for a business – so that when that business does come along – you are in a position to negotiate and move quickly. A business broker often never tells a buyer these 3 simple hacks to fast track the negotiating and sale itself.
Our experience as a business broker is that buyers who are able to move quickly achieve a better price and/or better terms.
The first thing to prepare is to know your numbers
How much can you invest? Speak to your bank about what is the minimum and maximum range they would be prepared to lend based on your personal financial position. Of course it will depend on the business, so find out what thresholds of profit will they need to see in order to lend you the maximum for example.
The second thing is to prepare your application for the lease.
I can tell you after years of selling businesses and working as a business broker in many industries, buyers never have this prepared.
This will really help you to stand out from the crowd, especially when negotiating on the business, because you can move quickly.
The thirds thing is to arrange your accounting structure
If you are going to buy a business, the cost of doing this is minimal, so do it now. Most buyers will wait until they have found the business. I have even seen a buyer lose the business to a better offer in the time in took them to register their company.
Those three really simple steps will place in you a fantastic position to move quickly and, and buyers that move quickly have a better chance of effectively negotiating on price.
Good luck, and make sure you have a look at our business for sale.
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