10 Biggest Buyers Mistakes

10 Biggest Buyers Mistakes

Introduction



Thinking of buying a business? Use the check list below to avoid common mistakes.

Ten mistakes check list
1. Not focused
2. Buyer not motivated
3. Lack of computer literacy

5. Not asking for financials early on
6. Failing to assess your true financial capability
7. Failing to package yourself
8. Expecting good deals to come

10. Paying too much

1. Not focused



2. Buyer not motivated

All buyers soon come to realize that the most important criteria for a selling situation is a motivated seller. The seller has to be passionately committed to selling. In order to successfully buy your own business, you have to be passionately committed. What is the measure of this passion? The buying of the business has to be your mission. You have to be willing to put up with the heartbreaks of the quest.

The average successful buyer will look at 100 deals, 12 seriously, make offers on three and buy one. Are you willing to start the quest, knowing that on average it takes a year to consummate a deal? Will your family sup- 10 Biggest Buyers Mistakes port you in the effort? Are you willing to live off of your savings for the quest period? And when it comes time to sign the big cheque - probably the biggest cheque you have ever signed - will your spouse cheerfully encourage and support you? Visualize yourself after nine months, without a viable deal in hand and no good prospects. Will you continue the quest? Will you still have the passion? If not, maybe you should reconsider the job market.

You have to recognize and be willing to put up with all of the negatives of owning a business: the risk that you will lose your investment; the long hours you will have to put in developing the business systems; the menial jobs you will have to do that nobody else is capable or willing to do; the myriad of government rules and regulations; the petty employee grievances; employees in general; the evenings away from your family entertaining customers, lawyers, bankers, and politicians. Before starting the quest, review your personal mission statement, do a motivation check, and assure yourself of the support of your spouse and family.

3. Lack of computer literacy





5. Not asking for financials early on



6. Failing to assess your true financial capability



7. Failing to package yourself



8. Expecting good deals to come




  • Seller who says, "Anything is for sale at a price." As pointed out in mistake number 4, the seller will make more money by not selling. So you are not going to be able to afford the right price. Move on .
  • Seller with a working younger family member in the business. Same situations as with the partner, except more so. The family member will get better terms than the partner


The good signs:

  • Sellers between 50 and 70 years old who sincerely are looking to retire with a retirement life planned;
  • Sellers who have family or partner problems and are at the point of exasperation;
  • who are burned out to the point that the business is suffering severely from their inattention;
  • Sellers with severe health problems, as they are usually motivated.


10. Paying too much