Small business ownership is, in my opinion, the very foundation of the American experience. Liberty and freedom are both the results and causes of capitalism. Without them both working congruently, it would be impossible for our nation and her citizens to survive through the choppy waters of ever-changing economic times. I hope this book will help you on your path towards small business owership and life choices.

SO YOU WANT TO BUY a small business?

By JOE VAGNONE

AuthorHouse

Copyright © 2011 Joe Vagnone
All right reserved.
ISBN: 978-1-4567-1958-6

Contents

INTRODUCTION IT STARTS WITHIN YOU, YOUR LIFE IS ABOUT TO CHANGE........................PAGE 13CHAPTER ONE JOE'S TOP REASONS TO BUY A BUSINESS........................................PAGE 17CHAPTER TWO OWN YOUR NEXT JOB..........................................................PAGE 21CHAPTER THREE WHAT BUSINESS IS RIGHT FOR YOU?..........................................PAGE 23CHAPTER FOUR SELLER FINANCING?.........................................................PAGE 27CHAPTER FIVE DO I HAVE ENOUGH MONEY TO BUY A BUSINESS?.................................PAGE 31CHAPTER SIX THE PERFECT DEAL...........................................................PAGE 35CHAPTER SEVEN TEN MISTAKES TO AVOID....................................................PAGE 41CHAPTER EIGHT BUYING A BUSINESS: TOO RISKY OR A SOUND INVEST MENT?.....................PAGE 45CHAPTER NINE HIRING PROFESSIONALS......................................................PAGE 49CHAPTER TEN DO I NEED A BROKER?........................................................PAGE 51CHAPTER ELEVEN VALUING A SMALL BUSINESS................................................PAGE 57CHAPTER TWELVE NEGOTIATING.............................................................PAGE 63CHAPTER THIRTEEN REMEMBER WHO GAVE YOU YOUR FIRST BREAK?...............................PAGE 71CHAPTER FOURTEEN MARKET BEFORE YOU MARCH...............................................PAGE 73CHAPTER FIFTEEN SURVEYS................................................................PAGE 75CHAPTER SIXTEEN LANDLORDS AND PROPERTY OWNERS..........................................PAGE 77CHAPTER SEVENTEEN ADVISORY BOARD.......................................................PAGE 81CHAPTER EIGHTEEN SCARED, NERVOUS, UNCOMFORTABLE?.......................................PAGE 85CHAPTER NINETEEN ARE YOU KIDDING? MORE DEBT?...........................................PAGE 87CHAPTER TWENTY FRANCHISE OP PORTUNITIES PAGE...........................................91CHAPTER TWENTY-ONE FRANCHISE RESALES...................................................PAGE 97CHAPTER TWENTY-TWO SERIOUS BUSINESS!...................................................PAGE 101CHAPTER TWENTY-THREE BUSINESS PROFILE..................................................PAGE 108CHAPTER TWENTY-FOUR PLANNING ON CLOSINGPAGE............................................117CHAPTER TWENTY-FIVE MANAGE YOUR TIME...................................................PAGE 123CHAPTER TWENTY-SIX KNOWING WHEN TO SELL................................................PAGE 127

Chapter One

joe's T O P reasons TO BUY A BUSINESS

There is a plethora of reasons for buying a business, but I think a concise list would include:

QUALITY OF LIFESTYLE: While being a small business owner does not mean that every day will be spent playing golf or fishing, it does mean that you could spend your days doing the things you enjoy. Think about it; if you are doing the things you have a passion for, won't your life be more fulfilling? And a fulfilled life is a better life!

HUGE TAX BENEFITS: Now I'm not an accountant so I will not attempt to give financial advice here, but there are many legal avenues afforded to the small business which will help defer and reduce your tax liabilities. This benefit works well in coordination with your current job if your small business is a secondary source of income. We'll talk more about this later in the book.

A PEACE OF MIND: Although none of us are in control of our lives (God is ultimately in control), the small business model gives you far more control than simply working for someone else. Small business ownership, when coupled with your spouse's income or a "company job," grants you much additional security and flexibility. Essentially you will not be putting all your eggs in one basket.

YOU GET TO GIVE BACK: You contribute to your town, city and the world in ways that make a real difference in the lives of people you may never know otherwise. I like to think of it in a very simple way. Giving enables you to fill the world with possibilities and pleasures where you think it's needed. In many cases, it is not just through money. Rather it's through action and living your life in transparency so others see God in your daily life.

Now I know what you are thinking, "WOW! Making money is not one of the top reasons for owning a small business?" That's right. Most small business operations within the first three years do not make the owner enough money to satisfy their expectations.

Now is a great time to ask yourself:

• Why do you want to be in business for yourself?

• What is your expectation for personal income?

If you cannot answer these two questions with honesty and clarity do not read any further. If you cannot position your life according to the answers you give to the questions above, then go out today and get a job working for someone else.

You must have the frame of mind that says, "I will do whatever it takes to make this new business work!" If you do not go into the venture with this attitude, you're not ready to be self-employed. And you would serve yourself and your family well to go get a JOB!

Remember, being self-employed is a life full of unknowns. If you do not have a measure of self-confidence and determination, there is no way you can teach and inspire others to come work alongside you. But if you have this self confidence, read on because I can help you get what you want. I will not have all the answers, but I will have ideas, plans, and visions which will allow you to fill in the blanks with your hard work, skills, and dreams.

Chapter Two

OWN Your next job

The question is what do you do if you find yourself without a job or if your current position is in jeopardy? The idea of just simply finding another job may not be that easy anymore. The reality of making 25 to 35 percent less in salary, and having a schedule that is not flexible or family-friendly, is a real possibility.

There are many small businesses for sale and opportunities for good profit margins. Most of these businesses need an owner with certain skill sets. In some cases, the present owners cannot make it through tough financial times because they may lack the business knowledge or skill set necessary to maintain the business in a challenging market. In other cases, the present owners are ready to retire, and the "financial" timing is right. Whatever the reason, there are many opportunities that can put you back in the workforce—working for yourself!

For most people, it boils down to the question of money. The truth is that there are many businesses for sale where the owner will finance. When working through the financing of a small business, there are numerous options, many of which would not require a bank. If you want to own your own business, rest assured that there are many ways to make it happen.

Most people are unaware that a 401-k account can be used to start a new business without any penalty or tax. In a climate of uncertainty, people should not hesitate to trust their money to work for them. One example is using the business cash flow to help with the down payment; the terms and deals are endless. You will find it amazing how easy it can be to be in business for yourself.

In fact, the time invested to find and buy a business of your own could...