Tips on Buying a Business- What Kind of Buyer Am I?

Here's another tip on buying a business.

In my experience, there are three main types of true buyers: those that look only for high cash flow, those that look for decent positive cash flow with the thought of using their experience to grow the business, and those I like to call bottom feeders.

Bottom feeders like to look for sellers in a really bad position such as fighting partners or negative cash flow due to an inexperienced owner. These are perfect to scoop up for next to nothing because the sellers not only want to get out, but they need to get out.

Knowing which type of buyer you are will narrow down your focus later on in the process when you are actually looking for a business to buy. It will also start to paint a picture of how much money you will need to make a purchase that is suitable to your "buyer type".

I should point out that if these are “true” buyers, then there are also “false” buyers. These people are either the unprepared and uncommitted buyer that I am trying to not let you be or they are just looking for information.

Be a prepared buyer. Know what to look for and how to find it along with the tools needed to flesh out, price and negotiate a favorable deal. Get it all here in the toolkit.


More tips on buying a business to come...

To Your Business Buying Success-

The Business Buying Guru