Running a business is not easy with a lot of things to consider as it requires your time, dedication, and undivided attention. Though you won’t have to start from the ground up, you still have to consider the following:

• Is the business in line with your knowledge, skills, and experience?
• Are you determined to do whatever it takes to succeed? Regardless of the challenges, are you willing to commit your time, effort, and resources?
• Is this something that will economically work for you and your lifestyle?
• Do you have the financial capacity to spend on the business? Do you have a financial contingency plan?

Search online

The world-wide-web offers a plethora of information on businesses for sale within and outside of the United States. Consider checking any of the following resources:

• BusinessForSale.com
• BizQuest.com
• BizBuySell.com
• Loop.net
• Craigslist
  

Other sources

Aside from searching for information on some business broker and commercial websites, you may also check other sources from:

• Newspapers
• Real estate agency listings
• Industry magazines and trade journals
• Franchise and Business Expo
• Lawyers and Accountants

Some of these websites offer an option to sign up and receive email alerts. You can sign up and opt to receive periodic updates and you can place it in a specific category on your email.

Criteria

Given that you have determined the nature of the business that is in line with your skills and it is something that you are determined to pursue, make sure to come up with a shortlist of the potential business that you want to buy and organize it according to the following:

• Location
• Price Range
• The reason why the business is for sale
• Advantages/Disadvantages

NOTE: Organizing your shortlist of potential businesses do not necessarily have to be limited to the categories given as an example. It could be anything that is based on the factors that you have considered.

Conduct your own research

You may also conduct your own research about the companies you have included in your shortlist and find more about a company’s financial information including revenue, cash flow, inventory, and market value.

Initiate contact with the business owner(s) and communicate in a way that is short, concise, and straight to the point. For example: “Hi, my name is Joe and I am calling you in reference to your ad on craigslist. I am interested to buy your business.” Remember, the owner doesn’t know you. Your goal in making initial contact should be:

• Introduce yourself and be acquainted with the owner
• Earn their trust (Not just to close the deal but for future business deals and make the business owner see that you are indeed a potential buyer)
• Find Information regarding the business
• Set up an appointment for a meeting and discuss the details of a potential deal

Important documents

Assuming that you and the seller in principle, have agreed to a deal after an initial meeting has taken place, it is incumbent upon you to carry out your due diligence in evaluating the value and potential of the business along with its associated risks to access confidential and valuable information before signing a binding contract. Unless you are a lawyer or an accountant, it is advisable that you do this process with the help of a lawyer, an accountant, or a business adviser and look into the following documents:

• Financial Statements (Balance sheet, Income Statement, Statement of cash flows)
• Income Statements or P&L Statements (Revenues, Expenses, Profits)
• Cash deposit and payment records
• Utility Accounts
• Bank loans and Lines of Credit
• Minutes of Director’s Meeting
• Audit Paper files
• Intellectual assets of the business (trademarks and patents)
• Seller’s claims about the business (Reasons for selling the business and its reputation)
• Privacy details (Includes information about customers, trading partners, employees)
• Details about equipment, fixtures, vehicles, plant (Is it licensed? In a good working condition?)
• Existing Contracts with clients and employees
• Agreements (Partnership and Lease)
• Details of the automated financial systems of the business
• Credit and historical details of searches about the business

Profit and Loss Statements should include records for the last 2 or 3 years. Balance sheets and tax returns, as well as business activity statements, should include records for the last 3 to 5 years. Usually, if you are buying a business that is registered as a Corporation, all of these records can be found in the corporate records book.

Some warning signs

NOTE: Warning signs that you should look out for before you decide to enter a legally binding agreement with the seller:

• Non-disclosure of important information as previously mentioned (Financial and Income statements, seller’s claims about the business, licenses, and permits, etc.)
• Questionable credit record and history
• Non-agreement to conduct due diligence
• Eagerness to close the deal
• Involved in legal issues

Once you and the seller of the business have reached an agreement of the terms and conditions involved in purchasing the business, drafting a contract for both parties to sign provides an assurance of understanding and acceptance to legally enforce the agreement. Enlisting the help of an attorney and an accountant is encouraged to ensure that you are advised about the tax and legal implications of purchasing the business.

Business Broker

In case you don’t the time to do the leg work in finding a business for sale in Las Vegas, you may employ the services of a business broker to save you the time and money in looking to buy a business. by checking for information online or obtain the information you need from the Nevada Chamber of Commerce. A business broker acts as an intermediary between a buyer and a seller that offer the following services:  

• Estimates the value of a business
• Advertise businesses
• Handles the initial interviews from potential buyers
• Prospects and negotiates with buyers
• Handles administrative tasks and facilitate the smooth flow of business transactions.

Qualifications

In employing the services of a broker, make sure to choose one with the following qualifications:

• Experience in valuing businesses
• Considerable legal and accounting knowledge
• A member of a trade association
• Accredited with a designation of a Certified Business Intermediary (CHI)

Tips on finding a franchise business

Aside from hiring a business broker to skip the taxing and laborious, part of finding a business for sale, you may simply opt to start a new franchise or buy one that is already established. To find a business that you can own as a franchise, you may do any of the following:

• Check online sources such as BizQuest.com and BusinessForSale.com
• Join a Franchise Expo
• Hire a Franchise Broker

Check the legalities

NOTE: Should you decide to franchise, you have an option to start up a new one or you can simply buy one that is already established. In the same manner that you are expected to do your due diligence before deciding to buy a business, the same principle applies in doing a franchise. Make sure to carry out the following tasks:

• Check the local Better Business Bureau (BBB) for records of complaints about the products, personal, or their services
• Make sure there are no allegations concerning fraud made against the business you intend to franchise with the Federal Trade Commission (FTC), the Bureau of Consumer Protection (BCP) or the Nevada Consumer Affairs and other consumer protection agencies
• Check with former and current franchisees