If you in the process of considering a business purchase, the ASBDC offers the following suggested Action Steps. These steps are intended to help guide you through the process and point you towards suggested information and tools.
It is important to estimate the amount of funding that would be needed for the project and consider funding requirements. It is recommended that those considering buying a business review "Can I Qualify for a Loan?" and consider the realities of obtaining financing.
Participating in the Buying a Business course will provide you with a good foundation as you proceed with purchasing an existing business.
Obtaining information from the seller about the business is a very
important step. This information can help in the decision making process
as well as will be required should if financing is needed.
It is important to consider any planned or required changes to the business. How will the business be different under your ownership? How will these changes affect the business? What would be the costs of such changes? A written explanation of planned changes should be developed.
Developing income statement and cash flow projections based on historical performance, information obtained from the sell, and planned changes to the business operation under new ownership. Developing projections can help you determine whether or not you are still interested in moving forward with the business purchase.
Arkansas residents - If you would like to talk with someone about the information you've obtained from the seller and about the feasibility of your project, the ASBDC can assist you. To obtain this assistance, contact your local ASBDC office.
