Is it a good business to buy?

I am a business broker, besides being a Commercial Real estate Agent. I make part of my living helping others buy and sell businesses. My role is transaction broker. I provide a limited form of representation to a buyer, a seller, or both, but do not represent either.

When people ask me if I think it is a good business, I have to tell them, "I am a salesman, I get paid if you buy, or if the owner sells. " do you really want to rely on my opinion?"

I try to use the businesses I put people in, so I would prefer that they are happy with their purchase. The trouble is, I have sold lots of them, and many were restaurants. If I frequented all of them, I might be much larger than I already am. But the key is, I try to help them through the transaction so that they have all the facts, so, if they buy, they are happy, even if I do not visit them regularly.

I do not know what makes a business successful. I don't think everyone who buys a successful business, will be successful. Nor will those who buy one that has failed will fail again. It is a formula which I do not have. I think you need the right mix of people, products, atmosphere, supply, demand, elbow grease and luck. Your business will need management, and decisions that will affect your day to day success. Some businesses succeed through sheer hard work. Others need something else. I suggest that you buy something, in which, you have experience, or at least enough knowledge to understand how it makes money and how to continue doing so.

Buy a business that needs your skills and is something that you will enjoy. Buy something for which you have passion and truly believe that you can make better.

Success will depend on you and the business. Lots of people buy a business to create a job for themselves. That is okay as long as you are qualified to satisfy the customers of that new business. Those customers are your new employer. If you make them happy, then you have a better chance at success.

Am I trying to scare you? No. All business involves risk. I just want you to be so sure that you can make it work, that it is worth that risk to you.