Small Business & Entrepreneurship

Have A Great Idea?		Looking to Buy A Business?	Already in business?
Writing a Business Plan	Finding Funds Grants	Women - Minority -Owned Businesses	Other Tools	Local Resources

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Looking to Buy A Business?

Many find the idea of running a small business appealing, but lose their motivation after dealing with business plans, investors, and legal issues associated with new start-ups. For those disheartened by such risky undertakings, buying an existing business is often a simpler and safer alternative.

Advantages

Disadvantages

The main reason to buy an existing business is the drastic reduction in start-up costs of time, money, and energy.

In addition, cash flow may start immediately thanks to existing inventory and receivables.

Other benefits include pre-existing customer goodwill and easier financing opportunities, if the business has a positive track record.

The biggest block to buying a small business outright is the initial purchasing cost. Because the business concept, customer base, brands, and other fundamental work has already been done, the financial costs of acquiring an existing business is usually greater then starting one from nothing.

Other possible disadvantages include hidden problems associated with the business and receivables that are valued at the time of purchase, but later turn out to be non-collectable. Good research is the key to avoiding these problems.

source:U.S. Small Business Administration http://www.sba.gov/starting_business/startup/buy.html

Can You Make A Million?

Is the Business Opportunity too good to be true? Before purchasing a business, make sure that the business is legitimate and not a scam. You can also check the current business records on file at the Better Business Bureau to see how the business is perceived by the public. Use these sources for additional information:

What You Don't Know About Biz Op Fraud Can Hurt You --
And Your Wallet!
http://www.ftc.gov/bizop/

BBB reports provide information on over 2.5 million organizations. It's a good idea to check before you invest or give.

http://www.bbb.org

The Better Business Bureau serving YOUNGSTOWN, OH is:

BBB of Mahoning Valley
http://www.youngstownbbb.org
Email: info@youngstownbbb.org
Phone: (330)744-3111
Fax: (330)744-7336
PO Box 1495
Youngstown, OH 44501 -1495

For updated information on Business Opportunities, please visit:

www.ftc.gov/bizopps

Checklists and Other Resources

Buying a business requires a fair amount of due diligence and steps to complete the transaction. The following websites offer information and insights into the process.

Buying an existing business can help you hit the ground running. Here's what you need to know to find a great deal. Entrepreneur, September 06, 2005. Includes a checklist of 25 items you should evaluate to verify the value of a business before making a decision to buy:
http://www.Entrepreneur.com/article/0,4621,323195,00.html

My Own Business, Inc., is a nonprofit organization committed to helping you succeed. A team of business experts have contributed their experience and knowledge to help you succeed in business. Their wisdom has been generously offered without any compensation.
http://www.myownbusiness.org/s10/index.html

Due Diligence and Research

Due diligence is probably the most critical stage in the buying process. Many prospective buyers incorrectly identify this period as strictly a financial review. However, an effective due diligence goes far beyond the numbers. Due diligence is the complete investigation and review of a business. http://www.bizquest.com/resource/due_diligence__investigating_a_business-10.html

If you have your heart set on working for yourself, buying an existing business might be just the ticket--or it can be a nightmare if you're not prepared. Know what you want and investigate your options aggressively. Do your research--the more you learn, the better your chances for success. http://www.ehow.com/how_107771_buy-small-business.html

The SBDCNET web site and its many resources are available to the public. The web site contains links of interest to the budding entrepreneur, the established small business owner, and the business researcher including: business plans, industry information, associations, Spanish language business documents, and publications. http://sbdcnet.utsa.edu/default.htm

Legal Agreements

Legal Basics For Small Business - 2004 Edition

The Ohio State Bar Association (“OSBA”) is pleased to offer Legal Basics for Small Business, designed especially for small business owners in Ohio who are looking for basic legal information. Presented in an easy-to-read question-answer format, this handbook is a compilation of individual articles written and edited by more than 80 Ohio lawyers who volunteered their time and effort. http://www.ohiobar.org/pub/?articleid=86

Why You Need a Buy-Sell Agreement

Most business partnerships start with the best intentions, but not every partnership ends that way. That's why buy-sell agreements are so important. http://www.allbusiness.com/articles/Legal/1301-35-1798.html

Local Resources

For more information on local resources, click here to go to the Regional Chamber's Local Resource page.