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Finding The Right Business

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Find the Perfect Business for you

Each day, businesses of all shapes, sizes and values are bought and sold across the world. But how do you navigate the process to make it work for you? Buying a business can be a game-changer—impacting your life in ways you may not even imagine. Buying a business can make you an entrepreneur without having to take on the risk of a startup, which statistically speaking, is very high risk of failure. But buying a business much be approached with care as well. Partnering with a seasoned business brokerage can make all the difference, especially one like DealPipe that holds the highest industry standards and ethics as its core guiding principles.

One of the things that we see with first time buyers is that they love the idea of owning a business, but get lost in the intricacies of purchasing a business. That’s where expert brokers can help, guiding you through each step of the process. A skilled brokerage will connect you with a network of professionals—accountants, lawyers, and others—who help ensure every detail is handled properly, so you can make your purchase with confidence.

Why Buy an Existing Business?

Owning a business offers tremendous opportunities, but it also comes with its share of challenges. One of the smartest ways to become a business owner is by acquiring an established company. When you buy a business, you’re stepping into an operation that already has structure, customers, and employees—putting you on a faster track to success.

Many buyers take advantage of their predecessors’ experience to ensure a smooth transition and set themselves up for long-term growth. This approach also provides new owners the freedom to implement fresh ideas, something they might not have the resources or backing to do when starting a business from scratch.

Why Starting from Scratch Isn’t Always the Best Option

Launching a new business is inherently risky. Around 80% of startups fail, meaning the odds are stacked against new entrepreneurs. Buying a business, on the other hand, offers a head start with proven profitability, a loyal customer base, and an established team in place. Instead of struggling through the early stages of development, you can focus on growing and evolving the business to suit your vision.

For those more interested in building on an existing foundation than constructing one from the ground up, purchasing an established business provides a way to bypass many of the tedious aspects of startup life, allowing you to dive straight into what matters most.

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5 Key Tips for Buying a Business

Whether you’re an experienced buyer or making your first acquisition, there are some essential things you should consider before purchasing a business. Here are five important factors:
1

Are You Prepared to Own a Business?

While being your own boss can seem enticing, business ownership requires a great deal of time, energy, and money. Although buying an established business comes with immediate profits, you’ll still have to manage the financial aspects, including purchasing the business, ensuring a smooth transition, and maintaining steady revenue. It’s important to thoroughly assess your readiness and financial situation before diving in. Know your budget inside and out and make sure you have some financial cushion in case of unexpected expenses or temporary revenue dips.
2

Know Your Industry

Choosing the right industry is a major decision that can make or break your investment. Start by evaluating your own experience and interests, then dive deep into industry trends and forecasts. Look at trusted sources to research the market. Consider consumer behavior, economic conditions, and whether there is a sustainable demand for the business you’re eyeing. A solid understanding of the industry will help guide your decisions and growth strategies. It will also help you develop a business plan that will be required by most banks you seek to work with.
3

Evaluate the Balance Sheet – not just the Income Statement

When evaluating a business, don’t solely focus on profits—take stock of its assets and liabilities, too. This includes tangible assets like real estate, equipment, and inventory, as well as intangibles such as customer loyalty, intellectual property, and the company’s online presence. Carefully assessing the company’s value and potential risks will give you a clearer picture of whether this business is worthy of an investment.
4

Assess the Business from a Common Sense Approach

It’s not enough to just analyze the financial metrics of a business; you also need to look at the company’s reputation and standing in the community. Read online reviews, check the Better Business Bureau, and examine its public image. Also, ensure the business’s financials are in order by working with an accountant to review the company’s books, tax records, and debts. A deep dive into these areas will help you avoid any unpleasant surprises after the purchase.
5

Review the Competitive Landscape & the Target’s Moats

Understanding how the business stacks up against its competitors is essential. Even if a company looks solid on its own, you need to know how it ranks within the industry. Are they attracting enough customers? Do they have a strong digital presence? Are they keeping pace with their competitors? Do they have Intellectual Property in place to protect their brand?
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