First-Time Business Buyers: What You Need To Know
Taking the Entrepreneurial Leap
Making the transition from worker bee to small business owner involves a great deal of time, effort, money, and personal commitment. It is not a decision to be made hastily nor taken lightly. There are certain questions you need to ask and certain elements to consider, with every step along the way a potential pitfall. How successful you become - both personally and financially - will depend in great part on how prepared you are at the beginning of the journey. Here are some of the most vital questions to consider.
What Type of Business Should I Own?
Your knowledge, business experience, temperament, personal interests, and comfort level in a particular field all contribute deciding on which industry you should consider. If you don't like hanging around other people's children, don't start a daycare center. If you hate sitting in front of the computer all day long, perhaps a career as an IT consultant is not ideal for you. If you have the same problems with the sun as does comedian Woody Allen - "I don't tan, I stroke" - a landscaping business may not be your best option. Matching your abilities and interests to the industry you want to join is the first positive step to take.
Where Do I Get the Money?
It is the rare business these days that can be started with just pocket change. That said, you don't have to be a multi-millionaire in order to become a first-time business buyer. Options abound for the enterprising soul, including buying a business from an owner who is willing to provide some or all of the financing. You can also consider an equity loan on your home, bringing in one or more partners - friends or relatives who might fulfill an active role in the business or else act as passive investors - or tap into your Roth I.R.A. fund, your 401(k) plan, or a pension account. In this area, creativity will rule the da