If you are buying a project for a working business, there are many factors to consider. It is important to acquire a business that has been operating successfully for a long time. The most attractive thing about this will be that you will not need to come up with a new type of service or product - everything has already been done by the predecessors.
Instructions
Step 1
Find a suitable project proposal. The most likely source of supply is from business brokers who specialize in selling companies. Bids may also come from entrepreneurs looking to market their project by placing advertisements in free classified newspapers or in the local editions of the inline advertisement division, as well as in newsletters and specialized Internet sites.
Step 2
Find out exactly what is being sold and determine how much you need to pay. Look first of all why a business project is being sold. The reason given by the seller can be given to you in any case, but it will not necessarily be the real reason for the sale.
Step 3
Try to find out what is the current state of affairs in the project. To do this, contact other people with information about the proposed business for sale. The price of a business depends on how much it generates income. Valuation of an ongoing project is considered a valuation of a business if it is still profitable. Review the history of an enterprise's earnings over several years. This will determine what the total income, profits and costs are here. When you invest money in acquisitions, you are actually buying a constant profit.
Step 4
Determine if you can afford to promote the project once you get an idea of the value of the purchase. Since you are purchasing a real property with real financial documents, it will be much easier to find the necessary financing than when opening a new business. First of all, you should contact relatives, friends, employees, banks. If the purchase requires a significantly higher amount than what can be obtained from these sources, it is worth considering attracting private investors or investment companies.
