Ready Set, Succeed
Buying a Business
Top 10 Tips to Buying a Business.By: Bob Hughes, Broker/President, Hughes Properties
10.) Make an offer; Good luck will come in handy here.
9.) Make sure the price of the business allows you a chance to make an income & pay off the note within a reasonable timeframe.
8.) Try to determine if the current employee will stay with the business. A lot of the value of a business has to do with trained employees already in place.
7.) Make sure the lease has some time left. The landlord will let the lease be transferred, especially if there is a established connection with them.
6.) Be prepared for usual tax returns and profit and loss (P&L) statements from an existing small business owner. The owner’s goal has been to keep as much cash as possible. You will have to have your accountant analyze the statements and have the “put backs” in the cash column.
5.) When you look to purchase a business it is imperative for you to have mutual respect between you and the seller. The seller is the most important asset you will have in the transition of the business.
4.) Most banks do not finance a business purchase. You must have funds or find alternating funds. Usually the seller will help finance the purchase, but they usually want additional collateral.
3.) Be aware of location of the business as well as doing your homework on any major changes around your new business.
2.) Find a business you can afford. Keep money for (6) months operating capital. There is always a learning curve when you buy a business. Money/Cash flow is the lifeblood of any business.
1.) Look for a business that matches your personality. A new business should be something you love to do. You will work better when you like what you do!
Bob Hughes, Broker
Phone: 760-323-8311 or 877-7HUGHES
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Hear it from our Customers
Always Willing To Assist With
Every Step Along The Way;
Takes The Mystery Out Of Buying A Business
Having worked with Hughes Properties since 2005 and purchased several businesses along the way, I can attest to the fact that Hughes Properties is fast-paced enough to keep up with me and all of my business interests.
At 90 years of age, it takes a dynamic broker to manage all my goals. Currently I own; Score Bar (Palm Springs), Dillon’s Roadhouse (Desert Hot Springs), Yokozuna Sushi (Yucca Valley), Morning Star / Oscar’s (Palm Springs), Crazy Mel’s (Palm Springs), Basic Gym (Palm Springs) and Desert Gift Shop (Palm Springs). Many of these ventures also needed liquor licenses and you delivered.
I especially appreciate how Hughes has always been ready and willing to assist with every step along the way; whether it’s acquiring a liquor license, dealing with the city, health dept., fire dept., and the lease process. The “Action List” you provide takes the mystery out of the buying process.
The Hughes Team Quickly Presented
A Number of Potential Buyers
I Would and Do Recommend Them 100% to Others
I can confirm a very positive experience while working with Hughes Properties during the sale of not just one, but two commercial buildings; Davey’s Hideaway in South Palm Springs and a mixed-use building on South Indian Canyon Drive. The Hughes team quickly presented a number of potential buyers and a perfect fit was soon identified. From A to Z, Hughes took care of everything for me.
I look forward to once again working with Hughes Properties when I have other properties ready for market. I would and do recommend them 100% to others.