If you have considered being your own boss, creating your own financial independence and making your own dreams a reality, you're not alone. Owning your own business is the "American dream". But the reality is that buying a business is a serious financial and personal commitment that requires an understanding of what makes a business successful. All too often, new owners jump blindly into a business venture, overwhelmed by the tremendous workload of starting a business from the ground up. A government survey shows that 60% of new businesses fail within the first three years. An existing, established business that is purchased by a new owner shows a minimal failure rate, with almost 85% success three years later.

Why Buy a Business (Buy vs. Startup)

Why buy an existing business? What are the advantages and disadvantages? You could start your own business, buy a franchise or purchase an existing business. The thought of owning your own business and buying an existing business has many advantages over building a business from scratch. This is a quick bullet list of some great advantages of buying an existing business

• Financial Records: You can review actual operating results, rather than projected results – an ongoing business has historical financial information that shows future sustainable earnings. Because of this you won’t have to invest the time needed to develop business and customers.
• Immediate Cash Flow: You get immediate cash flow from the ongoing business activities – with immediate positive cash flow, you won’t have to wait months to see a profit.
• Establised Suppliers: You will have established suppliers – the seller can pass on the relations of existing suppliers and vendors helping the transition be seamless.
• Customer Base: You will have established customers and referral business. Having loyal customers is crucial to the success of any business.
  Existing Licenses: You will have existing licenses and permits
• Seller Training: The seller will train you in operating the business – to help with a smooth transition for the buyer, the seller can properly train the new owner.
• Seller Financing: In many cases, the seller will provide the financing you need to buy the business.

The Buying Process (quick list)

• Carefully consider your decision to buy your own business.
• Educate yourself on the types of businesses you are considering
• Conduct research on the businesses currently for sale.
• Calculate how much money you can afford to pay.
• Contact and consult with a professional concerning your business goals and needs.
• Evaluate the businesses that are being offered for sale.
• Confidentially tour the businesses you are interested in.
• Evaluate the location work atmosphere and any potential changes
• Place Offer and Terms on the business of interest.
• Once an agreement has been reached, a professional broker can help you through the details of finalizing a sale. Details can include: due diligence, financing, any professional licensing, etc.
• Close the Deal.

Congratulations! You now own your own business!