BUSINESS OPPERTUNITY[HOW TO]

How to be certain you get the best deal when you buy a business?
To buy your own business is the first step to becoming financially free,rich.There are some pitfalls and aspects you have to consider,or take into account before you buy any business.

What kind of business?
This is the first and probably the most important question you must ask yourself.Many people think because the business are being successfully run by the present owner that when they buy it,it will also be profitable for them.This in many cases is not the situation and the business does not do well or even goes under.The number one reason for this is that the new owners interests and abilities does not suite the business he bought.

There are some questions you can ask yourself to see if the business you want to buy suits your interests and abilities.
1]Does the product of the business excite you and are you really interested in the business?
2]What is it in the present owners personality that makes the business successful and do you have the personality traits?
3]What makes the business grow?[factors]Selling skills,financial management,more capital are these your proven strong points?

Financial history.
Never buy any business if you can not check it's financial history.You must check at least the last 3 years.Do not listen to what the present owner tells you.Look and see what is reflected in the financial statements.

The price.
Business are almost always over priced.The purpose of buying a business is to make good investment.a Business is only a good investment if you can get your money back in less than two years.[The previous years profit before the owners salary is 100 000 dollars.The maximum price for that business must not exceed 200 000 dollars.If the business has a strong year on year growth of more than 30%.The price can be raised to 3.5 times the previous years profit.

The contract.
The following guidelines can be used to conclude a contract that are healthy and protects you.1]Method of payment.Never pay the full purchase price all in one.One third of the price should be payed in instalments.This shows that the owner believes that the business are successful and that he will be able to get the rest of his money.
2]Support from the seller.The seller must be contractually bound to assist you for at least 3 months.
3]Stock.The contract must make prevision for an adjustment in the purchase prise,if the stock is less than the stipulated amount.
4]Debtors.When you take over debtors there must be a agreement,that where debt are not collected by a certain time the purchase price will be reduced accordingly.
5]Employees.Do not bind yourself to keep all the employees,mention that you will attempt to do so.
6]Claims.The seller must guarantee that there are no outstanding claims against the business that are not mentioned in the contract.
7]Restraint of trade.The seller must agree not to trade personally,or by means of another person in competition with you.
8]Contract breach.If there is a breach in the conditions of the contract.The contract must stipulate that you have the right to cancel the purchase,receive your money back and claim damages.
9]Cost.The contract must stipulate who will pay legal fees and agent commissions.

These points mentioned are the most important factors you must take into consideration,or that has to be present before u buy a business.