Cell Phone With Pre-Existing Phone Number And Service For Sale Why You Should Never Buy A Business That Is For Sale

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Why You Should Never Buy A Business That Is For Sale

If you are thinking about buying an existing business, the information in this article will save you a lot of time, money, and frustration.

Ask this:

A while back I was talking to a guy who knows how to analyze and value businesses.

And he started telling me why it is such a mistake to buy any business advertised or listed with a business broker.

“Why is that?” I asked. I had never heard this before. In fact, I have always been told that businesses should be bought through a broker. And it was the easiest and safest way to do so.

“Because unless the owner is simply retiring and wants to cash in, there’s a much worse reason for them to sell,” he replied.

“What do you mean?”

“Well, are you selling your business now?”

I thought about it for a moment and it became clear what he was getting at.

People usually don’t sell good deals.

I know I wouldn’t sell mine right now…if it didn’t start depressing me or if it was going well I could “cash out” for tens of millions of dollars.

Unfortunately, with most businesses for sale, it’s usually not a retirement problem…it’s a stress or other issue.

And if you simply analyze the stats, financial statements and sales…it’s usually clear as bells what the “real” reason the owner is selling — good or bad.

And that was the case my friend.

If you are going to buy a business you must do two things:

1.) Learn how to analyze a business or find a doer.

2.) Be very skeptical of anything for sale or listed by a broker.

In fact, the best businesses to buy are not to sell.

The owner is not thinking about selling…because everything is going well. But at the same time, they are even more interested if someone approaches them with a letter or phone call making a lucrative offer.

Keep these simple facts in mind when you’re looking to buy a business and you’ll save yourself a lot of money, time and hassle.

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