When purchasing a small business, it's worth investigating the nature of the sales/profit stream.
These days you are more likely to buy into a service-oriented business rather than one in which inventory is involved.
Sometimes a deal goes through quickly, while other times it drags on. Patience is a virtue.
When you are in the market to buy a small business, here are some of the questions you should ask yourself.
If you have no competition, you are dealing in buggy whips.
There is a fundamental rule in business that says you should always be short of capital.
Put your business plan in a neat package, and hand inform banks that you are shopping around for a good deal.
By all means, make a proper business plan. Like chicken soup, it can't hurt, and you may get lucky the first time out.
What are your future cash flows and estimated sales? In a growing business these are hard questions to answer.
A story from retail, and what to include in the business plan.