Buying a business? Aim for a smooth transition

Istock 000002700759xsmallThe advantages to buying an existing business may suit your entrepreneurial spirit more than the challenges of starting one from scratch. You might prefer to follow an established formula rather than create a new system.

When you buy a business, the initial costs are usually more than those connected to a start-up; however, it may be easier to get financing because lenders will be knowledgeable about a known entity.

There are other advantages to buying an existing business:

Because a smooth transition will add more value to your purchase, it is a good idea to aim for mutually beneficial negotiations. If both you and the vendor are satisfied with the results, transitioning may be much easier. Expert advice can also be important, so you may want to use on a team of professionals (banker, lawyer and accountant) during the process.

The period of overlap right after the purchase is an ideal time to learn the ropes and ease in with as little disruption as possible. You may wish to:

You are not only buying a business, but also entering into a potentially complex and rewarding series of relationships. A smooth transition can help get your new venture off to a good start.

Familiarize yourself with some of the other aspects of making such an acquisition in our section on Buying a business.


Posted by Elsie on July 31, 2011
Sounds like a smart move, plus a business plan explaining why and how it will help, right?

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