Everybody knows it’s not an easy task to buy a business. If you plan to do it, most likely you’ve made lists over lists of questions and details to look out for. For this reason, today we’re presenting you a couple of questions to ask when buying a business, as the experts advise us.
Brief List of Questions to Ask When Buying a Business
1. What Would You Do Differently?
One of the most important pieces of advice comes from Joe Bodine. He is the CEO of an Overland Park business called American Business Masters & Investments Inc. In his opinion, it’s important to think what would you do differently with the business. This can help you find out more about the growth potential this business has. And the possibilities can range from additional product lines to untapped markets or other marketing opportunities.
2. How Did You Get the Asking Price?
Richard Parker is the author of the series How to Buy a Good Business at a Great Price. He says that one of the questions you should ask is about the asking price. Often, sellers choose a price that is set on arbitrary factors, for instance, how much cash they need to continue their lives. However, it’s important to ask them more about this. In this way, you can see if there are any problems with the business or if the price is indeed fair.
3. What Will You Do If You Can’t Sell?
The third of our list of important questions to ask when buying a business comes from Victor Cheng, the author of Case Interview Secrets and a coach for CEOs. For instance, if you find out that the owner would want to close the business or give it to an employee if he can’t sell, you can bargain more. This means you can get a lower price than you would have in the beginning.
4. What Skills Do I Need to Run This Business?
Regardless of the type of business you plan on buying, you should always ask this question. Whether you think about it on your own or even ask the seller, it’s an essential point. Andrew Cagnetta has been in the business domain for decades now. Think about the field and if it suits you. For example, if you’re an introverted person, it’s probably not a good idea to buy a bingo hall business. Or if you’re not too physically strong, don’t buy a construction business.
5. What about the Sales Taxes and Payroll Taxes?
In some of the states, even if you buy the assets of a business, the authorities can come after you if the seller had business taxes that weren’t paid. Therefore, you should remember this as one of the questions to ask when buying a business. As a small business expert and writer, Cliff Ennico stresses this as being particularly important.
The list of questions to ask when buying a business presented above is by no means exhaustive. However, it’s a good start if you are rather lost when it comes to buying a new business or if it’s the first time you’re doing it.
Image source: 1