So You Want to be Your Own Boss – Buy an Existing Business

By: Ken Lewellyn, CBI

The boomer generation spans many years creating a unique situation in the business
world. Aging boomers are looking toward retirement, while many younger boomers find
they’re ready to be their own boss. For those younger boomers, and others looking to be
a business owner, buying an existing business is a great option.

But be aware that buying a business is a timely process. Some buyers never find the right
opportunity, while others spend too much time exploring too many options.

Consider a step-by-step approach to get you where you want to be – owning your own
business.

• Ask yourself some important questions – Why do I want to be an owner? What
types of activities do I like? What lifestyle is important for me? You’ll also want
to be sure to include your family as part of the assessment.

• Line up a team of professional advisors – Alert your attorney, accountant and
financial advisors that you are looking for a business. Be sure to contact business
intermediaries who represent businesses within your targeted market. They’ll
work with you to let you know about available companies that meet your criteria
and qualifications.

• Consider your financial situation – Be sure to carefully consider how much
money you need and how much you want to earn. Your expectations need to be
realistic and something that can be achieved by the type of business you are
searching for.

• Develop a personal financial statement – The personal financial statement
should show your assets and liabilities and possibly include a supporting
statement from your banker or accountant. Be prepared to share this document
with the business intermediary who is working with the seller.

If you are planning to work with other investors, identify them and create a group
financial statement.

• Create a profile – Sellers want to be sure their business will continue to be
successful. They want to find a buyer who has experience and will take care of the
company’s employees. Really, you are selling yourself to the current business
owner(s) and the professional team that represents the seller.

• Establish your criteria for acquisition – It’s important to define the parameters
of your search. Include geographic requirements and criteria on the transaction
size. Having set criteria will help you demonstrate your commitment to finding
the right business for you.
If you are interested in buying an existing business, you want the business intermediary
to be selling you to the seller. It’s important that you demonstrate that you’re a qualified,
motivated buyer. Being prepared and serious about your search is an important initial
step.

Tennessee Business Services serves small business owners by offering services such as bookkeeping, taxes, IRS representation, business valuations, business turnaround consulting, sale of businesses and franchise advising.  Lewellyn is one of six business brokers in Tennessee to hold the Certified Business Intermediary designation, awarded  by the International Business Brokers Association.  Tennessee Business Services is located in Hendersonville, TN and can be reached at www.tnbizserv.com,  info@tnbizserv.com, or (615) 400-2150. 

The International Business Brokers Association is the largest international, non-profit association operating exclusively for the benefit of people and firms engaged in the various aspects of a business brokerage and mergers and acquisitions. IBBA has 1,950 members worldwide, with corporate headquarters in Chicago, Illinois.