Congratulations to you on beginning your search in buying a business! We, at County South want you to be as prepared as possible in your search for a business and want to offer you all the tools and information necessary to make your next venture successful! One of our experienced brokers at County South will be stepping you through the process from beginning to closing, so rest assured that you are in good hands. We will be there with you through the entire process to assist and provide you wth guidance and advice. We have prepared this information to help get you started and make you aware of some statistical information about our industry to better prepare you through your search and purchase. The industry of business buying has some very interesting, yet dismal, statistics. Things you should know..... *90% of all the people who begin the search to buy a business never complete a transaction. Why do 90% never buy?? -Interestingly enough, a recent poll indicated that 50% of all Americans dream of owning their own business. One would think that such high numbers would lead to far more people becoming successful business owners. However, there are several factors that explain the challenges buyers face. Reason 1: Most people have never bought a business before. They enter into this process completely unprepared. Even if they've had a successful career to this point, for most, nothing they've ever done adequately prepares them for what's involved in this process. It's even new to those who have been involved in corporate acquisitions, because now, it's their money at stake. Clearly, a lack of education is the number one reason for failure. Today's business buyer will face an onslaught of life altering questions, situations, and decisions during the various stages of the buying process. Lacking the critical knowledge to make these decisions, they simply choose to abort the project rather than seek out materials to assist them. Its crazy, but most people will spend hours online to save a few bucks when booking a vacation, but will not invest any time learning how to buy the right business. To avoid this trap, educate yourself, before you start looking, and certainly before you invest your money. Reason 2: Determining the right business is difficult for most people. With so much on the line, most get too SCARED to take a chance of buying the wrong one. Don't spend your time searching endless business for sale listings to figure out which, if any, may be right for you. Determine what type of business is right, and then find it. (its actually quite easy once you know how to do it) Reason 3: Lack of EXPERT Advice! Talk with your business broker, c.p.a., banker, etc. Get as much advice as possible from experienced professionals in these fields. In Summary, to avoid being a 90%er: 1)Educate yourself. 2)Determine what business is right for you, when you find something that fits jump in with both feet. 3)Affiliate yourself with someone or a group of someone's who can provide you with expert advice. *80% Of all Listings Do Not Sell. Why do 80% of all listings not sell?? •1) There are too many listings. The internet is swamped with business for sale listings. There are hundreds of thousands available, 50% of which are convenience stores, gas stations, and restaurants. Listed businesses do not always provide all needed information. A savvy buyer knows that they have to dig in and extract the information. You have to know what questions to ask, what to look for, and how to determine if what is being represented is true. •2) Many businesses are overpriced. Make offers, don't let an asking price deter you from making offers on what you feel the business is worth. There are additional unrealistic expectations by the sellers which cause only one in five to sell: wanting all cash sales, not providing adequate books and records, the business may be in decline, and quite often, they do not disclose enough information for someone to make a logical decision. This process comes down to knowledge and trust. When the buyer wants to buy, and the seller wants to sell, and the parties trust each other; then every challenge (and there will be challenges) can be overcome. *50% of Deals Fall Through. Why do 50% of deals fall through? •1) Misrepresentation of numbers (have an examination period (free look period) in your contract to investigate the business fully) •2) Cold Feet by the buyer (This is a big step, having cold feet is normal, every buyer feels this, especially first time buyers) •3) Sellers remorse •4) Inability to arrange financing (Have your business broker refer you to a bank, or mortgage broker that best fits your needs and the businesses situation. Experienced business brokers have been through this process hundreds of times and can assist you in this process to get you the best possible deal and not waste time) *As a buyer, you will need to understand that deals will fall apart. Do your best to move them forward, but if they collapse, then dust yourself off and move on to the next opportunity. *Buying a business is something that anyone can achieve. Don't let this become a looking process. Put yourself in a position to buy. Above all, educate yourself, get in the game. Once you own the right business, you'll never look back. You cannot guess your way to success! With the right information and advice, you'll make all the right decisions. Don't allow yourself to become a 90%er!
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