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Senin, 21 Juni 2010

Starting A Home Repairinspection Businesses (part 2)

By: Bill Henthorn

Finding a company and buying a company


Finding the right company to buy is the first priority of a new potential owner. There are several ways to do this. A buyer can study the businesses for sale in the local newspaper. You could ask any accountants or bookkeepers you may know if they know of a business for sale. The Internet is a good place to look, as there are two possible ways it may help. You can find a list of business brokers that work in your area. You can find listings of businesses for sale. Both of these sources will give you possible businesses that need to be contacted. Enlisting the help of a business broker, is very good way to go, as these professionals can be of considerable help in providing information and assisting in the purchase. Buying a business is far trickier than buying a home. There are so many aspects of a business purchase that must be checked out before the purchase is made. A business broker is use to doing these steps, as this is what they do for a living. All of this is about finding a company to buy.

After you find the company you want, what are the steps toward making the sale happen. This is always the art of negotiating. First a price must be established once the financials have been disclosed. The prospective buyer has the obvious need and right to all of the facts and figures about the business. Some owners are reluctant to disclose every thing and this is a mistake. Lack of transparency can kill the deal. There can be two prices. One can be based on a complete cash out an another can be higher if the buyer is going to need terms to complete the deal…This is common when the seller carries back paper to enable the sale.

This part of the sale is extremely important, as it is the crux of the matter. The price paid for a business can be determining in whether the deal works and is successful for all parties to the deal. The price while critical, the terms of the sale are just as important. A low price with monthly payments that are too high can be just as crippling. Both the total price and the monthly payments need to be in a range that can be handled without suffocating the business. The business broker can help in negotiating an agreement that all can live with and prosper under. If the deal cannot be worked out so that it is favorable to all concerned the buyer would be wise to just walk away from it and try later with a different seller. The worse thing a buyer can do is strap themselves into a financial arrangement that they cannot live with for the length of the payment period. The business broker can help with making the situation work for both the buyer and the seller.


Conclusions


The home repair business has many potential clients as there are always people who cannot do the repair work by themselves. They need to hire it out or it will never get completed. There are more homeowners than there are repair people to do the work. There are many possible jobs within this group of people, so this group is the clientele for the typical repair business. The second group of possible clients is the real estate management companies and the real estate brokers. These clients are always solid and worth cultivating if you want to grow such a business.

The home inspecting business is always in demand, as most buyers of homes want them inspected before they buy them. They do not want to buy a problem that they will need to fix shortly after they buy the home. The real estate brokers can be influential here as they have the inside track on recommendations. If you buy an existing business, the client list will come with it and will provide some clients to the business. This is the obvious reason to buy an existing business if the price is not too high. As with all purchases of an existing business the buyer must evaluate the price versus what the business will bring with it as to clientele.

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