How to Buy A Good Running Business inIndia?
There are various advantages to buying an existing businessif you are not as interested in starting from the stretch.
For one thing, when you buy an existing company, someone elsehas probably already done a lot of the startup legwork like verifying thatthere is a market for your product or service, creating a good customer base,hiring a skilled team, and negotiating a lease. The major factor of buying abusiness is doing the right research so that you can be confident enough to dowhat you are doing.
At Startup City Magazine, we have come up with a step-by-stepprocess from the beginning stage of finding the business, negotiation, duediligence and closing the business deal. No matter if you are doing this onyour own or you are taking support from a business broker thereis some general concern, you need to take;
Decide the Type of Business
Whether you are going to buy a Small and Medium Enterprises(SME) or a big company, you need to decide the type of business. It depends onthe types of work you have done in your life. People mainly make this mistaketo buy a business they know little about. Beyond selecting something that youknow and understand, even better if you can land on something that you love. Itis less difficult and a lot more fun.
Find the Company or Broker
Once you have decided on the type of business, start yoursearch. Ask business associates and friends for leads to similar businessesthat may on the market. Many of the best business opportunities surface by wordof mouth and are snapped up before their owners ever list them for sale.Newspaper ads, magazine ads, trade associates, real estate brokers, andbusiness suppliers are some other ways to explore.
Brokers can be Helpful
It is completely fine to use a broker to help locate abusiness opportunity. A broker is an expert professional who has been in theindustry for a long time, He will help you from the steps of negotiation to duediligence on the business's history and finance and closure. Having a businessbroker supplements you in the process as he has done his research about thecompany and the industry.
Check Important Business Documents
Before making your final decision, make sure to check all thebusiness's certified financial records like Cash flow statements, Balancesheets, Accounts payable and accounts receivable, Employee files, majorcontracts, and leases and more. This review will make you clear about thecompany you are buying and will alert you to any potential problems
Ask for Information
Ask all important questions to the company's CEO about thebusiness related to company assets, potential or ongoing litigation, anyworker's compensation claims or unemployment claims, commercial leases andmajor contracts, trade secrets, patents, registered trademarks and more.
When you have thoroughly investigated a company and now readyto go ahead with a purchase first, make sure that you and the owner or the CEOof the company are agreed on a fair purchase price. Also, brush up on the keyelements of business valuation. After this, create a written sales agreementand possibly have a lawyer review it before you sign on the dotted line.
This is all about how you can buy a good running business inIndia. Often visit the Startup City Magazine website to stay updated with theIndian Business Industry.