You finally decided to go into business for yourself. However, you would rather buy a business instead of build one from the ground up. The situation is tricky and requires thought and research.
Businesses in Boston range from local pizza shops to software companies. Do you know what steps to take to get what you want? Take these four tips into consideration before buying.
- Decide on the business you want
What type of business do you see yourself owning? Think about the following:
- Location – Where do you feel most comfortable? Do you want something that is right around the corner from your house, or are you alright with driving an hour every day?
- Size – What size of company are you willing to take on? A large corporation may mean more money but also more challenges. If you love interacting with people, a smaller business may be just your speed.
- Type – What area of business do you want to work in? You may feel more comfortable with a company where you have experience, or the excitement of a new enterprise might be the perfect fit.
- Do your due diligence
Research the business you want to buy. Have a business valuation done to determine the true worth of the company. You may want to hire an accountant to evaluate the financials. Question anything that does not seem clear to you.
- Figure out the funding
How are you going to pay for the company? Once you and the owner decide on a price, find out what your best options are. You can get a business loan through a bank, or the seller may be willing to let you make payments for a time.
- Draft the sales agreement
You may want to have an attorney put the agreement together for you. A legal professional can help you to understand the terms of the contract fully. You need to know precisely what you are signing.
Read over Massachusetts’ statutes concerning the Uniform Commercial Code. You can see your future and it is exciting, but take your time figuring out the right business for you.