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Buying a Business: What Questions to Ask

Categories: Informational
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File folder with Merger and Acquisition and financial graphsWant to start a business, but also want to avoid the hassle that comes with starting it? It would be wise to buy one instead. Starting a business is like a tending to a newborn; one wrong step could land you in the ER. Luckily, you don’t have to go through complicated processes if you don’t have the heart and time to do it. You still need to polish your business skills, though, as they necessary for success. For the best experience when buying a business in Utah, ask these questions:

Why is it on sale?

Naturally, this should be the first thing to ask when looking into a business. An attractive asking price might have you too excited to remember, but don’t make that mistake. While there are sellers who are genuine, others might be selling their business to run away from a sinking ship.

If your expertise allows, buy a low-performing business only if you’re confident that you can turn it around. Otherwise, stay away from businesses embroiled in legal suits or having trouble with the IRS. Enlisting the services of an expert enables you to root out such issues before making a commitment.

What makes the business unique?

The last thing you would want is to acquire a business only to find out that you’re incapable of running it properly. Understand the business model and how they market the services and attract new prospects.

If the business is highly specialized, get the seller to stick around and show you the ropes to ensure a smooth transition. Again, make it a point to interact with some customers to gather their take on the business and the kind of service they provide. Such a move prevents you from flying blind when you take over the reins.

Buying a business provides you with a great alternative if you don’t want to start from scratch. However, you need to proceed with caution to ensure that you’re making the right choice.