Planning for Purchasing a Business

A business plan is a vital step in the process of purchasing a business from a business broker. A good business plan clearly defines the mission and objectives of business, its new ownership, sales plan, market, strategy, management team, and financials. This is much important when you are purchasing an existing business, because there is so much ambiguity involved in this process.

·        Start with existing information

Take your first step with the help of information you get from previous owners of the business. Generally, during the purchasing process of business, you received a proper business plan from the previous business owners, although business brokers ensures that you get business plan for the business you are purchasing. One of the important functions of a business plan is to define the business prospects; therefore, many business sellers normally use a business plan as their selling document. It can contain information about business history, financial plan and history, management information, and all possible prospects. You should always consider a business plan when buying an existing business.

·        Proceed with caution

Proceed with caution even If you do have a business plan, provided by the sellers,. Consider this plan as the strategy of seller's to sell the business, not to manage the business. Compare the seller’s plan for the business with its previous financial information, market data from un-biased sources.