Common-sense advice to buyers.

Take a chance! All life is a chance. The man who goes the furthest is generally the one who is willing to do and dare.
Dale Carnegie

1. Not being clearly focused.
   Know what it is you are looking for. Have a checklist. Focus on your key skills and look for businesses that can complement these. Buyers and brokers will quickly dismiss you if they think you are a time waster or tyre kicker. The perfect business doesn’t exist, and you may have to compromise on what you are looking for. Do your homework before you go looking.
   
   
2. Do you really want to buy a business?
   How serious are you about buying a business. Is it a pipe dream because you’re bored in your present job or are you really prepared to spend the time (sometimes up to a year) and money looking for your opportunity? Do you have the support of your wife or partner? Can you see yourself working hard to make your purchase a success? Do you know what’s involved?
   
   
3. Understand the seller's motivation.
   This is vital. Why is the business for sale? Don’t be afraid to ask this question directly. Has the seller paid an upfront fee to a broker to represent them? How committed to selling are they? What will the owner do after the sale? You need answers to these questions in order to assess the proposition properly and find out if the business has any underlying problems that the seller is trying to escape.
   
   
4. Not getting enough information / Asking questions.
   You need as much information as possible to help you assess the opportunity fairly. However, this needs to be balanced against the owners need to maintain confidentiality. Don’t be put off having to fill in a confidentiality agreement or non-disclosure agreement. You won’t get far without one. Ask questions gather as much insight as you can.
   
   
5. Not having the money.
   Don’t expect to buy a business without access to funding or a cash pile. You can find and negotiate great deals, but you will need the finances in place if you are to be taken seriously. Don’t get offended if you’re asked to provide proof of funding ability. A seller will want to make sure you’re serious and not a time waster. Work out what your budget is and how you can finance it. Remember, you will probably need to allow for working capital requirements and debt repayments.
   
   
6. Presenting yourself.
   A broker, representing a client will look for three main things from you if you are to be taken seriously: Can you finance a deal ?  Do you have the ability or skill set to run the business?  Will you get on with the owner? Update your CV, prepare a personal profile, assemble an acquisition brief and know what you want to achieve.
   
   
7. Understand the brokers role and how they can actually help you.
   A broker is there to facilitate a deal, not to be obstructive and get in your way. Don’t get upset when asked to provide information about yourself and your finances, or to fill in a confidentiality undertaking. These are to protect the seller’s interests. A broker will be managing the sale process on behalf of the vendor, and they will be talking to many interested parties. Don’t be afraid to ask questions and seek guidance on the best way to approach the purchase. Be honest and upfront, and a broker should do all they can to help you..
   
   
8. Don't contact the seller directly.
   Unless you are given the go-ahead by the seller or broker. you should not contact the vendor. This is not to protect the broker’s commission, as most people mistakenly believe. This is so that you don’t compromise the confidentiality of the seller. Respect this or you won’t get very far in your attempts to purchase.
   
   
9. Making a decision.
   It is only courteous to let everyone know as soon as you’ve made a decision – either way. Provide feedback to the broker and let them know if a particular business is not for you. They can help you find something more suitable.
   
   
10. Don't be afraid to make an offer.
    Offers can be made subject to contract and due diligence. If you like the business and it ticks your boxes, make an offer - state your interest. You are not obligated. However, make sure you have the finances in place as you will get asked to prove your ability to make a purchase.