Advice on buying a business

[AddeyRoubens]

Does anyone on here have any successful experiences in buying businesses? Any good books or material to suggest on the subject? Where to go to find them being sold (the businesses)? I'm an online (solo)entrepreneur, but I'm now looking for a bit more challenge, and a lot more cash flow.

I imagine that it's like buying a used car (well, not exactly, but since I have no experience in it, I have to draw for some kind of relation). You have to know what you're looking for, have a checklist to look over before you take the plunge and hope for no big surprises. This sort of thing I'm asking about.

For now, I'm doing my research on businesses for sale, which for now means Googling. First want to see what's on the market and what piques my interest and what I feel I can get into. I'm interested in both online, traditional, and franchises.

 

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[tonibob]

Does anyone on here have any successful experiences in buying businesses? Any good books or material to suggest on the subject? Where to go to find them being sold (the businesses)? I'm an online (solo)entrepreneur, but I'm now looking for a bit more challenge, and a lot more cash flow.

I imagine that it's like buying a used car (well, not exactly, but since I have no experience in it, I have to draw for some kind of relation). You have to know what you're looking for, have a checklist to look over before you take the plunge and hope for no big surprises. This sort of thing I'm asking about.

For now, I'm doing my research on businesses for sale, which for now means Googling. First want to see what's on the market and what piques my interest and what I feel I can get into. I'm interested in both online, traditional, and franchises.

Hi @AddeyRoubens,

Almost any business advertised for sell has some underlying issue. You would need to look at how things are done in your country. In UK for examples there different laws for England, Scotland etc. Here we get information in The Gazette https://www.thegazette.co.uk/, the best bet is to approach liquidation practitioners/companies as they usually get the information first.
Everything is about due diligence and buy in the market you are the most informed.

Best,
Pete

 

[SEBASTlAN]

Read "Buy Then Build" by Walker Deibel

 

[Kid]

GOLD! - HOT! - From 0 To $240,000 Per Year PROFIT In 18 Months (Acquisition Entrepreneurship)

From 0 to $240,000 per year profit in 18 months I've been a follower of this forum for about a year now, had read the Millionaire Fastlane book, and finally have decided to tell my story. About a year and a half ago, I found myself unemployed and with near zero savings, two house payments, and...

www.thefastlaneforum.com

 

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[AddeyRoubens]

GOLD! - HOT! - From 0 To $240,000 Per Year PROFIT In 18 Months (Acquisition Entrepreneurship)

From 0 to $240,000 per year profit in 18 months I've been a follower of this forum for about a year now, had read the Millionaire Fastlane book, and finally have decided to tell my story. About a year and a half ago, I found myself unemployed and with near zero savings, two house payments, and...

www.thefastlaneforum.com

Thanks for that. Gave me some food for thought. I was considering a physical business, but I like his run down of the 11 checkpoints, which I will adapt. I think I should stay within my specialty and stick to the internet business world.

 

[Envision]

I’ve bought one company that I still currently own and run today.

id look for a value add opportunity.. I look at companies weekly and noticed variables that I could improve in the company relatively quickly and I knew how to grow it.

At today’s valuation we acquired essentially a 6-8x sde business for 1.5x which is obviously what you want to do when it comes to that.

read the books, listen to podcasts and probably get some Ecom knowledge on the niche before you buy into it. I also would be super hesitant of buying with debt as that would strain the new business that you’re trying to grow. Find cash partners or bring your own cash

 

[Kid]

Thanks for that. Gave me some food for thought. I was considering a physical business, but I like his run down of the 11 checkpoints, which I will adapt. I think I should stay within my specialty and stick to the internet business world.

If it's not the best thread on this topic here, then its definitely in the top.
Glad you have value out of it.

As for expertise. You can learn something new. But it also takes time - no shortcuts here.
Overall buying something you have no idea about is recipe for disaster.

 

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[Walter Hay]

Here's a good thread that you might find interesting:
Taking over business from retiring baby boomers

Walter

 

[Walter Hay]

For now, I'm doing my research on businesses for sale, which for now means Googling. First want to see what's on the market and what piques my interest and what I feel I can get into. I'm interested in both online, traditional, and franchises.

Be careful if you think of buying a franchise. I strongly recommend scaling by franchising but by that I mean SELL FRANCHISES - DON'T BUY THEM.

If you buy a business it is worth thinking about making it a franchiseable business and selling franchises. It would be hard to beat franchising for rapid growth.

I suggest you have a look at my thread: Rapid Scaling a business by franchising
and this: Taking over business from retiring baby boomers

Walter

 

[JunkBoxJoey_JBJ]

Seek this out, it should help...

BiggerPockets Business Podcast 51: Business Opportunity Is Knocking… Answer the Door! With Nigel Guisinger

 

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[million$$$smile]

Walter, I respect your business acumen. i have thought about franchising my business rather than scaling it corporately..
If you had the choice, would you open new locations as a corporate store or franchise. And why$

It just seems like one loses control if franchising, and one has to deal with the issues of franchisees and more headaches.
Can you explain why you would develop one and not the other?
Perhaps on another thread...

 

[Walter Hay]

Walter, I respect your business acumen. i have thought about franchising my business rather than scaling it corporately..
If you had the choice, would you open new locations as a corporate store or franchise. And why$

It just seems like one loses control if franchising, and one has to deal with the issues of franchisees and more headaches.
Can you explain why you would develop one and not the other?
Perhaps on another thread...

At your suggestion I have transferred your question to another thread for my answer. See: Rapid Scaling a business by franchising

Walter

 

[AusTex]

I wrote this yesterday and it's a good, quick read: How to Purchase a Small Business

I purchased and ran a physical business years ago and it was a phenomenal experience for me, although experiences can vary.

 

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