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    5 Replies Latest reply on Dec 19, 2012 9:53 AM by Moderator Berta

    buy an existing business

    gisel0621 Newbie

      hello,

       

      i want to buy an existing business, and i heard that i can get a Gov grants but i dont know how to go about it, if there is anyone that can help me with this. im interested on buying a beauty salon.

        • Re: buy an existing business
          Guide

          Hi Gisel0621,

           

          I would turn to an accountant. They have all the information you would need to apply. Not every grant is the same and may not be right for your needs.

           

          You could check these links as well Info: US Federal Government Business Assistance (Grants, Loans) Benefiting Women And Minority Owned Business

           

          Starting a Business - Business Start Up - Beauty Salon - Loans/grants - Santander

           

          Good luck!

           

          Melinda

          • Re: buy an existing business
            moneytrack Scout

            I'm going to echo Melinda's advice to get an accountant.  You are going to want a good one by your side that has experience in buying businesses.  Sellers of businesses can often "dress up" the books to make the company look more profitable than it really is.

             

            The Money Track
            Independent Financial Advice & Personal Financial Planning

            • Re: buy an existing business
              Stephen Hartfield, CPA Adventurer

              Hello Gisel0621,

               

              Government grants are out there, but they come in all shapes and sizes depending who you are (ethnicity, age, gender, to name a few), your experience, military status, if any, how many employees will stay with the business and how many more you plan to add, etc.

               

              A few of my clients have applied for grants for their businesses with mixed results. Based on their comments, the amount of work involved to comply with all of the bureaucratic red tape was not offset by the reward of the grant.

               

              But - and here it comes - I wouldn't count on that to be the sole source of funding to buy an existing business.

               

              The reason that I am putting a somewhat negative spin on this process is that you shouldn't be betting on the government to help you buy your new business. The purchase of this business should be based on a combination of cash and loans, and a few other very important factors:

               

              1) A solid business plan,

              2) reasonably good credit,

              3) some level of expertise in (or ancillary to) the business to be acquired,

              4) the help of a good accountant to perform some due diligence on the business,

              5) the help of a good attorney to review the purchase documents.

               

              The most important advice that I can give you is for you to take ownership of the process before taking ownership of the business. While a good CPA can work through the numbers, it is you who has to really spend the time to understand the numbers, the business, the future, etc.

               

              Stephen R. Hartfield, CPA

              www.debitsandcredits.com

               

              In general, and I believe this is good advice for all business people

              • Re: buy an existing business
                Jim Peters Tracker

                As rightly said above, you shouldn't depend on the government grants to buy a business. Firstly do the valuation of the business to avoid any losses. Do a research about the industry your business will be dealing in. Check if you have enough finances to runt he business, and enough money for contingency plan. Check if you can do it in partnership. Check the modes of payments and other options available to you while buying it. And if everything is in place, including your finances, treat the government grant as a bonus and go ahead. As you just cant completely rely on it.

                • Re: buy an existing business
                  Moderator Berta Guide

                  Hi gisel0621,

                   

                  You've gotten lots of great information here so far. Have you been able to check into any of it?

                   

                  Keep the information coming everyone!

                   

                  ~Berta