Advice On How To Buy A Business In 2010 Posted Online

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The dramatic changes taking place in the economy directly impact business buyers. And it means they need to change their understanding about how to buy a business. Valuable information about this is provided in a blog posted to BizBen.Com.

Someone who sets out to buy a business without taking these factors into account will be at a great disadvantage moving forward into this century

Potential purchasers of small and mid-sized enterprises, recognizing substantial changes taking place throughout the economy, can get ideas about how to buy a business in this new environment from an article posted on the blog page of a popular business clearinghouse website.

“The way to buy a business in 2010 is different from the way it was done in the past,” said Peter Siegel, MBA, whose article with advice for buyers appeared on his company’s site, BizBen.com--businesses for sale in California.

“Consider how the challenging economic forces we now deal with have altered the way business is conducted. Then add in the influence of new technology.

“Someone who sets out to buy a business without taking these factors into account will be at a great disadvantage moving forward into this century,” according to Siegel.

Among the changes noted are the increased need for seller financing and a shift in the supply/demand balance between small businesses and their landlords as well as suppliers.

“We advocate that entrepreneurs learning how to buy a business get in the habit of looking for savings they can achieve by renegotiating with the organizations providing the company’s goods and services. And that goes for the property owner too, if the lease is near expiration,” Siegel noted.

“The owner of the business premises used to be able to influence terms of a deal, sometimes even requiring a fee to agree to a transfer from seller to buyer.

“Now, with the climbing rate of vacancies for commercial and retail properties in many markets, the buyer has more options when dealing with the property owner,” according to Siegel.

And he explained that seller financing is becoming a more common feature in small business sales than ever before.

“That’s because buyers just don’t have access to funds the way they did when lending was a more vibrant activity and borrowers had plenty of home equity to help with collateral.

“We advise people who ask how to buy a business, that they start by finding out if a seller will carry back part of the sale price for a qualified purchaser.

“The seller who won’t help to finance his business sale isn’t likely to enjoy a deal in this market. And he certainly won’t get his price.”

Siegel added that a critical part of evaluating a business for sale is to determine “what’s involved in dragging the company into the present.

“It’s scary to see people review a company’s books and think they’ll run things the same as the seller and repeat the seller’s profitability.”

The BizBen.com CEO explained that most any enterprise doing business successfully in 2010 has to “fit into the current business and social climate.”

A robust website, an aggressive customer relations management program, and a campaign to build the brand using social media are just three of the features a business needs to have in place, to function effectively going into the future, according to Siegel.

“If the company being purchased is not prepared to do business in the current environment, the buyer is looking at the high cost of a makeover.

“And that cost should be included in the total investment required. And it should be treated as part of the total price paid to take over the business and operate it successfully.”

The posting on the BizBen.com blog page to inform people about how to buy a business reviews a total of six principals that Siegel said a buyer should understand before making an offer on a business.

BizBen.com is the most popular and heavily used site for California business buyers and sellers, as well as for business brokers and other professionals who serve them. Peter Siegel, MBA, the founder and CEO of BizBen.com, has been advising people about how to buy a business and how to sell a business for more than 20 years.

Contact: Peter Siegel
Phone: 866-270-6278

http://www.BizBen.com/

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