Editor's Note:   This is the second in a series of articles on buying a business: the financing, the negotiations, the process, and the how-to's.
 

Narrowing the Field: What Are You Looking For?

by Doug Perry
Commercial Realtor ®

Normally when I talk to new buyers they have only a general idea of what they're looking for. When it comes to zeroing in on specifics, they usually aren't very clear. And that's okay. This general idea produces flexibility and an open mind to other opportunities.

But remember, you're going to be doing this a long time and it needs to be a passion, not just a job. It has been said, "If you love what you're doing, you will never work a day in your life."
 

Let's look at the ways to find a business:

1. What are you looking for? Examples can be broken down into several categories:
   
   
   • Service -- restaurants, food services, janitorial, car wash, dry cleaner, daycare, etc.
   • Trades -- auto repair, auto body, handyman, machining, construction, etc.
   • Professional -- dental or medical practice, accounting business, insurance agency, etc.

     What I normally see is people coming from other tired career fields looking for a new adventure. Life is short and they want to do something fun and meaningful with their lives. By owning their own business, they have a sense of pride and control over their lives versus an employer that shows them the door when the economy changes.

2. How many hours a day, a week, a year are you personally going to be on the job?

   Many occupations by their very nature are 24/7/365. If you don't want to go down that path, now is the time to rule out those types of occupations.

3. Employees or no employees?

   Employees are the backbone of America. When you're the boss you realize you can't live with them and you can't live without them. When choosing a business consider how many employees will be needed, who will train them, and how much they're going to cost you. Mom-and-Pop-only businesses are fine, but if you ever want to take a vacation it could be a problem.

4. Training.

   Training for you and your employees can mean the difference of succeeding or not. If you are changing career fields, it is imperative that you seek serious training before getting into the new line of work. If you have to go back to school, attend a trade school, or pay for a mentor/trainer then do so.

   The Final Word: Ask and answer the questions. Do your homework.

NEXT TIME: Where Will You Find It?