The formation of a business from scratch can be a strenuous process. Many times, entrepreneurs opt to purchase an existing business to avoid hefty startup costs and headaches. However, purchasing an existing business is not stress free. There are still issues that can go awry when purchasing an existing business from a previous owner. To avoid problems, entrepreneurs should take the following steps:
- Obtain information on why the business is for sale;
- Obtain certain financial and tax information, including expenses and debts;
- Assess the location of the business;
- Speak with the current owner(s) and ask vital questions pertaining to the current state of the business, among others.
