What to Look For in a Business
- A long track record of success. People do not stay in business if they are not making money.
- Why is the owner selling? The more valid the reason for selling, the more realistic a seller will be in considering a valid offer.
- Verifiable cash flow supported by good financial records.
- A business which you will enjoy running and which will be fulfilling over the long term.
- Investigate the business as well as the industry and the competition carefully. Do some basic market research. What are the growth prospects for the business? Can you see some ways to improve the business and increase the cash flow?