10 First Steps To Buying a Business

Don’t start a business – Buy a business!!

Starting a business is rough stuff. Most businesses aren’t even profitable for the first 3-5 years anyways. It’s just brutal. But buying a business on the other hand – is the way to go. 

If you are working a day job right now- and are scared to take that first leap… my advice to you is to wait until the right business shows up.

The acquisition process doesn’t have to be overwhelming or seemingly unconquerable. YOU can do it!

It’s as simple as looking at a deal a day.

That’s all you have to do – and I guarantee that eventually you have one that you know is just way too good to pass up. 

So what do I mean by the acquisition process??

One of the questions you need to answer will be : What will your DEBT-EQUITY Ratio be?

Where is the money to buy the business going to come from? Are you going to empty your life savings into the project? Are you going to raise money from some investors to buy it?

Will you get a line of credit from your bank to make the purchase? Maybe a little of both? These are things you need to know.  

Small Business Acquisitions Process

Here are some actionable steps I found while reading that you can follow to get your small business acquisition firms off of the ground: 

1. Entity Setup (LLC, or Corporation). We like Wyoming, Nevada, Delaware places like that, but do your research on the advantages and pick one

2. Setup Professional email: eric@ericcorp.com (usually use G-Suite for this)

3. Bank Account Setup in the Entities’ name (Usually something with word Capital, Equity, Holdings in it–don’t make it unique or flashy, boring is best)

4. Paypal account setup in Entity’s name

5. Website (you can start a Blog or a 1 page Website to have a place to start putting out content if you so desire)

6. Facebook Page/ LinkedIn/ Twitter, Youtube

7. Build your Brand (professional pics)

8. Start making a list of all the business owners that you know. You may be reaching out to them to talk about whether they would be interested in selling their companies or know of anyone looking to sell.

9. Start joining good Facebook Groups: Flipping Websites and others so you can start reading and learning the pulse of the internet acquisitions.

10. Start looking at Deals and post 10 deals a week that you think might be interesting in the Facebook Group

Acquisition tip– visit any of these sites for more information: feinternational.com, empireflippers.com, quietlightbrokerage.com, bizbuysell.com, and bizquest.com.

It’s the little things that add up when you’re looking to acquire your a business. Just take it a step at a time!

In my course I go through the next couple steps of acquiring a business such as: making an offer, structuring a deal, deal analysis, and working with the brokers.

You can find more information about that here.

Happy acquisitioning!

Bridger Pennington

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