You are not just buying a business but purchasing a lifestyle and livelihood as well. The goal for the buyer should be to purchase a business that works for you, not the other way around.
Look for seller financing. Banks often aren’t willing to make loans for the purchase of a business, which makes seller financing essential. Down payments of 30% or more are not uncommon in the buying process.
Get professional advice, and expect to hear some warnings. Even if you want to negotiate a purchase without the help of a broker, which is highly cautioned, you should still look to the industry leaders for guidance.
Don’t buy a business without the seller agreeing to the following: a review of all financials, the inclusion of all intellectual property, training, and a noncompete clause signed by the seller.
How to choose the right business
Buying the perfect business starts with choosing the right type of business for you. The best place to start is by understanding the reason behind your decision to buy a business. What are your interests? What best matches your skill sets and experience? Where does your passion lie? And what is your financial capabity? Then you must meet with an experienced business broker that understands how to match each buyer with the perfect business.