Buyers

A good starting point is to work out what type of business you are looking to buy.

 Perhaps consider your past experience and the type of business is best suited to you.

You may have special skills and trades that you can bring into the business.

 Then work out your budget.

 If you are looking to borrow funds to buy a business it is a good idea to get some pre-approved finance in place, or at the very least get an idea from your financier how much they will lend you and on what terms and conditions.

 Ask your financier what percentage of the purchase price they are willing to lend and if they will require any security over your existing assets.

 Consider also allocating funds for miscellaneous expenses. In addition to the purchase price of the business, you will need additional funds to pay for stock, legal fees, accountant’s fees to conduct due diligence, stamp duty etc.

Funds should also be set aside for working capital and in many cases a rental security bond will be required by the landlord (in some cases up to 6 months rent).

Remember:  Choose a broker who understands your needs.