With the economy steadily — if somewhat slowly — improving, it may be a good time to become an entrepreneur. Are you thinking of buying your own business? Here are a few things to keep in mind:
The timing of an offer is critical. You might be antsy to get the deal going immediately after you find the business you want, fearing it won’t be on the market long. But, if you make an offer prematurely, you may have insufficient resources to consummate the deal. That could leave you scrambling for funding at the last minute.
It could also mean higher financing costs, should you run out of time to find more favorable interest rates. In the worst case, the entire deal could unravel at the last minute.
How will your existing level of financial obligations and debt affect your ability to grow the new enterprise? Don’t be so eager that you box yourself into a deal with loan payments that are not sustainable over the long haul. Start investigating financing options as soon as you’re thinking of buying a business.
How important is it to you that you team up with a recognizable brand? Franchises are popular and they have a valuable turn-key element. Yet, they also come with operational strings attached. There are usually many restrictions in the average franchise agreement. Also, you should be aware that franchisees often work long hours.
Go into the transaction with your eyes open, and try to keep your imagination in check. The best way to turn your entrepreneurial dreams into reality is to ground them in facts. Buying a business is a momentous decision — one you will live with for some time. We’re here to support you through the entire process!