Small Businesses

5 Tips for Buying a Small Business

Monday, 14 May 2012 Andy Anderson

If you’ve ever considered owning and managing your own business, you may have also realized how risky it can be.  Many small business owners found the economy too challenging over the past few years and decided to give it up for more profitable ventures, but that hasn’t deterred budding entrepreneurs from buying a small business.  In fact, many believe that now is the best time to invest in existing businesses.  If you ask a business broker or veteran entrepreneur to give you tips for buying a small business, the answers you get will be all across the board, but here are my top five -

In an online column published earlier this month in Entrepreneur’s Daily Dose, Catherine Clifford reports that the one of the unsung business success stories is the contribution of small businesses.  While larger companies continue to hire at a very slow pace, small businesses account for nearly 97 percent of all private sector hiring.

Looking at the jobs report for April 2012, the overall number of private sector jobs went down since March, but only 4,000 of the 119,000 jobs added in April were at large businesses.  A large business is defined as a company with at least 500 employees.  Compared to the 58,000 jobs added by small businesses in the same month, it’s clear that small business success is contagious.  Medium-sized businesses were a large part of this number as well, adding 57,000 jobs during the month of April.

Top Tips - Buying a Small Business

Monday, 13 February 2012 Andy Anderson

If you’ve ever considered owning and managing your own business, you may have also realized how risky it can be.  Many small business owners found the economy too challenging over the past few years and decided to give it up for more profitable ventures, but that hasn’t deterred budding entrepreneurs from buying a small business.  In fact, many believe that now is the best time to invest in existing businesses.  If you ask a business broker or veteran entrepreneur to give you tips for buying a small business, the answers you get will be all across the board, but here are my top five –

If you are in the process of buying or selling a small business, there are several factors to keep in mind. Not all of them will apply to every situation, but whether you hire a business broker or not, here are some valuable tips for the entrepreneur

Buying a small business and running it well doesn’t necessarily mean you will get rich quick, especially in this economy, but there are some ways to be smart about the way you manage cash flow.  Depending on the type of business you buy, your cash resources will constantly be sucked into a vortex of growth-related expenditures.  For example, as the company grows, you will need to finance new hires, buy more inventory, lease better equipment and purchase more real estate.  To top it off, you will then have to pay taxes.  

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