The idea of buying your own business may sound like a good idea, and it can be.

An early question that you are going to have to answer is whether or not to use a professional business broker.

To help you with that decision here are some tips:

1. A business broker is a person or firm who/which acts as an intermediary between sellers and buyers of small businesses.
2. Backed with years of experience assisting people just like yourself successfully buy their own small business, a professional business broker can be the rational voice to balance your natural enthusiasm.
3. Helping you pinpoint your interest. A reputable professional business broker will start out by finding out exactly what your skills and interests are. Using this information, he will then help you make the right choices as to what is the right type of business to be looking for. You may find yourself considering options you had never considered before and discarding ones that might have turned out to be popular but mis-guided!
4. Professional business brokers will pre-screen businesses for you. Good brokers refuse to sell many businesses they are asked to. Amongst the many reasons would be for example if they felt that the business was over-priced or if the owner was unable or unwilling to provide full financial disclosure. Going through a professional business broker can help you avoid such problems and risks.
5. There are many things to account for when buying your business such as current market conditions, pricing and business financing. An experienced professional business broker will be up to date with these factors and help you use them to your best advantage.



6. It is at the negotiating stage that professional business broker really start to earn their money. They keep both sides focused on the end goal of a successful transaction and are there to smooth over any hiccups that may occur.
7. Professional business brokers are there to help you get the paperwork right. They are up to date with all the relevant rules and regulations concerning everything from licenses and trading permits to raising finance and holding escrow funds. They know the best way to cut red-tape and speed up processes that may take the ordinary guy in the street many months to get through. Using a professional business broker you are unlikely to forget a  crucial form, fee or step somewhere in the long process of buying a small business.
8. Professional business brokers can help you value your prospective business. There are times however, when you may feel the need to do this yourself and there are several self assessment aids that you can turn to. One of my recent books covers this subject in detail.
9. Professional business brokers know the tricks that owners use to present their business for sale. They can provide invaluable assistance allowing you to see through the hype, highlighting any dubious areas that may require more thorough investigation.
10. Professional business brokers have access to a wider range of businesses for sale than you would be able to find. Through their extended network of business resources and contacts they may well be able to find you your dream business before it comes on to the open market.

So when you are faced with the question as to whether it is worth using a business broker to buy a business, consider the above.

If you feel that the fees justify the benefits then you know what the right decision has to be.

This article was written by Brian K Fitzgibbon CPA.

Brian is an experienced accountant and small business consultant. He runs his own business, lectures extensively on small business topics and has checked out and valued many hundreds of small businesses for buyers.

Brian is also the author of the highly acclaimed and invaluable
"How To Value A Business And Buy It Without Fear"
A do-it-yourself guide for first-time and experienced buyers alike.

To download a FREE Chapter from Brian's book please follow this link: "HowToValueBusiness.com"

May 9th, 2009 | Tags: brokers, business brokers, buy a business, buying a business tips | Category: articles | Subscribe to comments | Leave a comment | Trackback URL  |