How to Buy a Business in Atlanta
If you have rightfully determined to buy a business in Atlanta, an existing one as that will be less risky and ultimately less expensive than starting a new venture from scratch, then you have come to the right place. This article will address how to buy a business in Atlanta and show you the 10 easy (and sometimes not so easy) steps to guide you through the buy a business in Atlanta process.
How to buy a Business in Atlanta Step #1: Assess Your Desire
Many people desire the flexibility, control, and financial freedom that can come from owning their own business. In fact, it’s the American dream. But being your own boss is not easy. It will require dedication, commitment, and more time and money than you ever expected to spend. Are you and your family really ready for those sacrifices?
How to buy a Business in Atlanta Step #2: Choose the Best Fitting Business/Industry
Although there are a tremendous amount of opportunities out there that make you think, “I can do that and make a fortune.” It is really a better idea to stick with what you know. In fact the Small Business Administration usually requires you to have at least two years direct experience in the industry if they are going to loan you money to buy the business. If you want to buy a restaurant, make sure you have managed one first!
How to buy a Business in Atlanta Step #3: Assess Your Skills
You might be an excellent craftsman, salesman, or employee, but buying a successful business will also require skills in marketing, finance, management, and human resources. You really can’t do everything. Be realistic and get help in the areas where you are weak. If you don’t, you will burn yourself out before the business even has a chance to grow and prosper. An ongoing business may already have this key help in place. If so, that’s great. Just make sure that your skill set closely matches the owner you’re replacing.
How to buy a Business in Atlanta Step #4: Assess Your Finances and Investment Resources
There really aren’t any great “No Money Down” opportunities out there. Even if you can obtain bank financing for the business, it will generally require at least 30% down. If a seller is going to carry financing for the business, expect to offer them 50%-70% up front. In addition, plan for at least another 10% of the purchase price for working capital. There are a lot of expenses in successfully transferring the business that you might not be expecting.
How to buy a Business in Atlanta Step #5: Find the Right Opportunity
Most businesses for sale will be listed on BusinessesForSale.com, BizBuySell.com, or even Craigslist. It is great to look at these sites and get a feel for what is out there. But before you act on anything, contact an experienced Atlanta Business Broker to help you. Usually the seller pays the broker fees, so it probably won’t cost you an extra dime. The Atlanta Business Broker will also help you get the right information and determine the best price to offer for the business.
How to buy a Business in Atlanta Step #6: Make a Binding Offer in Writing
The only way to have strength in your negotiations is to bring a legally binding offer to the table with all of the important terms of the sale clearly spelled out. Your Atlanta Business Broker will be able to help you with this step and make sure everything is done legally. The seller can accept your offer, or make a counter offer.
How to buy a Business in Atlanta Step #7: Due Diligence
Once you have an offer that is accepted, your Atlanta Business Broker will have written some contingencies into the agreement. This will give you time to have your accountant and attorney request information from the seller to substantiate all of the claims they made regarding revenue, profits, business reputation, etc. If you find that the business has been misrepresented, you can back out of the transaction at this point with no penalties.
How to buy a Business in Atlanta Step #8: Escrow
Never buy a business and pay money to the seller without a proper business escrow process set up by your Atlanta Business Broker. If you do, you can be held liable for the debts or tax liabilities of the previous owner. The business escrow process will get the proper lien clearances and make sure that any claims are settled out of the seller’s proceeds before the business is transferred.
How to buy a Business in Atlanta Step #9: Transition
Your Atlanta Business Broker will help set up a transition plan and schedule. There are a ton of little things that must be done in order to keep the deal on track. They include business organization, permits, vendor accounts, and everything else to get you ready to run the business. You should have also negotiated a period for the seller to remain around and provide training after you take over.
How to buy a Business in Atlanta Step #10: Business Ownership
On the day you are scheduled to close escrow, you will do a final walk-through and make sure all of the inventory, equipment, and other assets included in the sale are still there and in good working order. If not, your Atlanta Business Broker will make arrangements, in writing, for the seller to make things right.
Congratulations!!! Now that you have been through the buy a business in Atlanta process you are now a business owner and entitled to the unlimited amount of work and reward that follows.
