Steps to Buying Your Own Business


                                                                                  



1. Initial Contact and Consultation with Me

- To help analyze your skills, interests and financial needs. 


2. Selection of Businesses Best Suited to Fit Your Needs

- I have a wide range of businesses for you to select from. 


3. Review Business Summary

- Basic Information about the business.

- Valuation of business. 


4. Tours of Selected Businesses

- Tour businesses to meet Seller(s) and understand the complete business

opportunity.

- Always be accompanied by me on a showing. 


5. Second Consultation with Me

- Discuss visited businesses as to your likes, dislikes and concerns.

- Review financial summaries of businesses toured that appeal to you. 


6. Meeting / Conference Call with Seller & Broker

- Ask probing questions.

- Confirm that the business is right for you. 


7. Make Proposal with Earnest Money

- Generally 5% of the purchase price.

- Earnest money held by escrow company.

- Contingencies and conditions in offer may include:

     1. Proof of sales and expenses

     2. Training period from the seller

     3. Covenant not to compete (time and area)

     4. Approval of franchise agreement

     5. Obtain an adequate lease

     6. Approval of 3rd Party Financing (if necessary)

- Earnest money refunded to you if contingencies are not realized.

- If you are satisfied with the business, your earnest money simply will become

part of your initial investment in the business. 


8. In Depth Inspection of the Business ("Due Diligence")

-Review financial information provided by seller.

-Check furniture, fixtures and equipment.

-Remove contingencies and approve Authorization to Close. 


9. Request to Open Escrow, Prepare Documents and Conduct Searches

- Request made only after Authorization to Close is approved.

- Additional deposit to open escrow, generally 50% of total down payment less

earnest money.

- Buyer and seller share closing costs which range from $1000 - $1,500.

- Review all documents. 


10. Inventory Approved by Buyer and Seller

- Inventory to be counted by buyer and seller prior to closing. 


11. Closing - Congratulations You Are Now a Business Owner!