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The Comprehensive Guide to Buying a Business

Buying a business is a dream for many people. While some people may have a specific type of business they’re interested in, others may just be dreaming of any kind of entrepreneurship. Either way, buying a business is a huge step that takes a lot of learning and planning.

It’s important to understand the ins and outs of purchasing a for-sale business. As you plan and prepare, make sure you have a good grasp on all of the details, so that you can make the best decision about buying a business. Here’s everything you need to know:

 

Before You Buy a Business

Before you jump into purchasing any business that you think looks viable, take the time to plan. There are a number of details that may not initially come to mind but could actually make or break a business opportunity. With proper planning and understanding, you can be set to have a smooth business buying transaction.

 

Things to consider

Don’t just jump in blindly. While a seemingly good deal may just show up, that doesn’t mean it’s the right one for you. Planning requires having goals and an understanding of what you are capable of purchasing. It gives you direction as you set forward on your buying journey and helps you make the right, intentional decisions.

Take inventory of yourself and the things you’re interested in to determine the type of business you’d like to buy. At the same time, figure out your business goals. If you’re looking for a lucrative business venture but the type of business you’re looking for isn’t very profitable, you may want to reconsider the business sector you buy in.

You will also need to figure out how much of an initial investment you’re able to make and if you’re going to be able to cover all of the upfront costs. Once you have a basic understanding of these details, you’ll be ready to start looking.

 

Funding a Business

Before you make an offer on a business, you need to make sure you have your funding in place. If you’re not going to be able to pay any initial investments, or if you’re unable to obtain the funding you need, then you’ll have to put your business purchasing dreams on hold for a bit.

There are a handful of ways to fund a business purchase. Figure out the type of funding that will work for you and your purchase, and confirm your ability to obtain it.

You can fund your business purchase with your own savings, with a commercial loan, or with investors. Take a closer look at these options to see which would work best for you:

  • Savings- If you’ve been saving money for your business, you may have enough to finance the purchase on your own or make a hefty initial investment.
  • Commercial loan- Borrowing money from a bank or credit union is one of the most common forms of business funding. With this option, you will be charged interest as you work to repay the loan within a certain length of time.
  • Investors- When you fund a business with investors, you are giving them a stake in your business. In exchange, they provide you with cash to fund the business. This could be a good option if you are not against sharing a portion of the business.

Once you choose the type of funding you’ll need for your business, you’ll want to work on getting everything together. You need to have your funding in place before the purchase, so this should be a top priority. Many business deals fall apart at the last minute due to issues with funding.

How to Buy a Business

You’ve prepared, planned and determined what type of business you want to buy. You know where your funding is coming from. Now it’s time to find the exact business that you want to buy.

 

  • Search For Your New Business

 

There are many sites and platforms to check out when you’re looking for a business for sale. A few places to start include Daltons, Nationwide Business, and Rightbiz. Each of these sites has online platforms where you can either search for specific types of businesses or simply view their listings.

As you get started on your search, check these sites for a basic overview of what’s out there.

 

  • Get in Touch

 

Daltons, Nationwide Business, and Rightbiz all include details about each business and contact information so that you can learn more and even get the ball rolling if it’s the right one. Once you have found a business that you’re interested in, you’ll want to use that contact information to reach out to the seller and learn more.

After your initial contact, you’ll know more about the business and will be able to tell if it’s something to continue pursuing. You will probably want to obtain certain details from the seller such as annual revenue, net profits, and why the business is being sold.

Oftentimes after contact, people determine it’s not the right place and they keep on looking. However, if you’re still interested, it’s time to take the next steps.

 

  • Put in an Offer

 

With funding in place and a business you want to buy, it’s time to put your offer in. Make sure you know what you’re willing to spend on the business so you’re prepared to negotiate. Give yourself some leeway by putting in an initial offer that’s less than your max amount.

Send in a written offer and justify it. If your initial offer is accepted, you’re ready to move on. However, there’s a good chance the seller will come back with a counter offer and it will be time to negotiate.

You should also determine if you want to work with a broker to help you with your offer and subsequent negotiations. While not necessary, it may be useful to have an expert on hand to offer advice and guidance.

 

  • Go Under Contract

 

With an accepted offer, you’re officially under contract for your new business. During the waiting process, you have work to do. You need to make sure that this business is going to be a worthwhile investment. Work with professionals to look over all the details of the business and your contract to confirm.

Check out the projected financial performance, accounts, VAT returns, current insurance information, contracts, assets, vendor information, debts, and more. Make sure you are fully aware of what you’re getting into when you buy this business.

 

  • Closing

 

If nothing goes awry during the waiting period, the date chosen for closing will come. Before closing, all contracts will need to be transferred to you and every condition that was set will need to be met. Once that happens and your closing date comes, you’ll officially be a business owner. Congratulations!

 

In Conclusion

Now that you know how to go about buying a business, it’s time to enter the planning phase. Remember not to rush things. Take your time and plan properly, figure out your funding, and start searching for the perfect place. If you’re patient and intentional, you’ll be on your way to owning a business!



Nicholas CapuanoNicholas Capuano
11:20 17 Sep 24
Been using Clyde offices for 1 year, brilliant service just renewed for another year.
Lance WilliamsLance Williams
15:54 04 Jul 24
Very easy set up process, great address for buisness , looks better than a home address in my opinion
alan wattalan watt
13:13 28 Jun 24
Very pleased so far with Clyde offices. very quick and easy to set up and they keep you informed of any developments.
Stuart GraceStuart Grace
11:06 30 May 24
Very efficient and friendly service. Excellent value for money. Strongly recommend this service. Have used this service as my ltd company registered address and hence get correspondence forwarded to my home address.
Business 83Business 83
21:16 16 May 24
Very easy sign up, clear and fast communication with competitive pricing. Just joined and hoping the service is as good as the sign up process.
Muhammad ADMuhammad AD
09:29 16 May 24
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07:39 03 May 24
I recently signed up to Clyde Offices and so far I couldn't be happier with the experience. From the moment I initially enquired about their services to signing up, their communication has been prompt and efficient. The sign-up process was incredibly easy and straightforward.
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06:16 03 May 24
Recently joined Clyde Offices and the whole process has been so easy. From signing up to the initial engagement from the team, the whole process couldn't have been better. would highly recommend.
SA PietrzakSA Pietrzak
16:05 24 Apr 24
I would like to recommend Clyde Office for friendly and professional service. The set up process was easy and straightforward.
Tom McDonaldTom McDonald
19:25 18 Apr 24
Great Service and very easy to use.
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13:43 18 Apr 24
Only recently joined, however, I am really pleased with the ease of joining, the promptness of engagement and the general engagement received. Thank you.
PucPuc
08:00 12 Apr 24
Setting up a new registered address for my business was so stressful with all the other challenges a new business faces. Clyde Offices took all the stress out of it. The service was so simple to use and we're very happy with the ongoing relationship.
Y. R.Y. R.
10:13 11 Apr 24
The registration with Clyde Offices was easy and efficient and the fee was very reasonable. I've been with them for a few weeks now and have been very happy with the service. Responses to a couple of queries I had were prompt and resolved easily. I would happily recommend this service.
esther iesther i
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MFbyForesytheMFbyForesythe
10:56 28 Mar 24
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I recommend it, easy access to the website and unrivaled low cost... '
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Not long started using this s service and so far amazing. Easy set up and very fast.
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12:37 11 Mar 24
Excellent service. Centrally located Well priced
a ea e
09:40 04 Mar 24
Speedy on-boarding process, efficient mail notifications and friendly reception
IdrzyIdrzy
19:43 15 Feb 24
Very fast service , address sent via email immediately after purchase. Attentive staff and customer service
Tom GairTom Gair
09:39 09 Feb 24
Found these guys, easy to follow online instructions. Quick to set up. Very fast response times to welcome us on board. Not yet used their services, but I'm sure they will be great!
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13:49 01 Feb 24
Mark MunroMark Munro
14:50 29 Jan 24
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09:40 26 Jan 24
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16:59 25 Jan 24
Clyde Offices provided us with a consistent and really good service for almost 4 years. Gerry was always at the end of the phone to help us with our queries. I would recommend Clyde Offices if you are looking to add value to your office needs, i.e. outsources answering service etc.
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11:08 11 Jan 24
Super easy to set up, very competitively priced and friendly follow-ups.
Gillian's WalksGillian's Walks
14:01 30 Dec 23
Quick and easy to set up. Great to have an option like this locally.
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12:41 07 Dec 23
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Julie MurphyJulie Murphy
15:16 06 Nov 23
This is a great idea if you have your own business but would like an address in the city centre on top of, or instead of your own address or other location.Allows you to advertise as being based in the city centre.Anytime I had to contact the offices the staff were great and very helpful. I didn't need to contact them much at all because the process is so easy and straightforward.
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08:55 20 Oct 23
Really easy to get set up and competitively priced service.
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23:25 19 Oct 23
Very good and very cheap rental
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11:25 10 Oct 23
Can't fault the service; long may it continue. A good choice for most I would think
Stacy MairStacy Mair
09:56 10 Oct 23
Clyde Offices were very helpful and informative when setting up an account with them, they provide the full service at competitive prices and no additional fees.
j caldwellj caldwell
16:47 21 Aug 23
Setting up my virtual business address with Clyde Offices was so quick and easy to set up in minutes. They also were in email contact to make sure everything was ok and if I needed any other services from them just to make contact with them. I couldn't be happier with the service I received. Thank you
Levati LearningLevati Learning
14:13 21 Aug 23
Very good experience working with the team at Clyde Offices. They have been helping us out for over 5 years now and couldn't survive without them.
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16:12 14 Sep 22
A vastly superior service from Clyde Offices than any of the corporate virtual offices I have used in the past. A fab team, very efficient and friendly, always very helpful. I would recommend them one hundred percent. Great Central Glasgow location if you ever need to visit.
Audrey JenkinsAudrey Jenkins
04:00 03 Jul 22
I hired a mailing address through Clyde Offices for two months and the service was hugely helpful during that time. I rented some camping equipment for my hiking trip and could only find it for mail delivery; because I flew in from the USA, I needed an address in Glasgow and it so happens their office is very near the train station so this plan worked out perfectly as I set out Monday morning for my trip via train. In addition to easy communications and set up, the service worked with me on my order so that delivery time and pick up were arranged and I had no issues arriving and picking up as planned despite an awkward delay between delivery and pick up. My box was also large, which was certainly an inconvenience for them to hold for a week, but they understood my situation. I recommend Clyde Offices if you are seeking a mailing address in Glasgow.
Kathleen RobertsonKathleen Robertson
09:33 21 Mar 22
I have found Clyde Office to be 100% committed to all work that they carry out for people. Very helpful polite and trustworthy.
Ralph FlemingRalph Fleming
14:44 20 Mar 22
Alan and the team have been a real find for me. They do my reports and deal with all my mail for me. They automatically scan my mail over to me so that I can pick it up on the go, I could not recommend them enough for a small business like me. It's true what they say if you don't have an admin person then you are the admin person!
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17:56 19 Mar 22
Clyde Offices provide me with an incredible service that is invaluable. They help me manage my business. I use for call answering, mailing address and also they help with some of my admin via the virtual assistant service. 5 stars for sure.
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18:45 16 Mar 22
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Glasgow ClinicGlasgow Clinic
11:57 16 Mar 22
Amazing service for a new startup. Understands my business needs and always happy to offer solutions. Professional staff at the end of the phone every time.
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15:19 14 Mar 22
The staff are professional and timeous in their communication to customers.They give you confidence to work anywhere in the world and they handle your administration in a fantastic way.....keep it up...
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