bizzday July 27, 2019 No Comments
India Business for Sale:
Today, buying or starting any business is easier than ever, unlike the olden days when one has to struggle to buy a business for sale in the country. Earlier there were many obligations and constraints associated with buying a business for sale. However, a pro-business Government and e-commerce have now made it very easy, convenient, and affordable for one and all to buy a business for sale in India or to franchise a business or to start a new business in India.
One can always buy India business for sale either online or offline. Offline methods though are a traditional method of occupying a business in which you use your social contacts. The online method, on the contrary, is a method, which involves online dealing.
There are several online brokerage companies now who deals with buying, leasing, selling, and franchising of existing businesses for your ease. However, the best of all is Bizzday.com. It is the best online platform for one and all, from where you can gather all the information regarding buying a business, or selling a business, or for entrepreneurs who are looking to start a new business.
Most importantly, all the formalities associated with buying of business for sale are taken care of by Bizzday.com completely. As all the formalities can be done from the comfort of your home at an affordable cost. Moreover, you can easily and affordably register a company or a business partnership.
If you also want to be an entrepreneur, but not ready to start with a new idea — or maybe you don’t have a new idea worth starting – in such a situation the best you can do is buy an existing business instead.
Well, before you decide to buy a business for sale, here is a list of ten things about business for sale you have to experience it yourself.
Here we go…..
Though buying a business involves more upfront cost, but buying an existing business presents less risk than starting from scratch. Here are ten things which you will experience while buying a business for sale:
1. Decide what you’re looking for
First thing first, buying an online business for sale is a huge decision that will impact your life and livelihood for many years. There are several factors which you need to consider before you even start investigating options. These factors are Location, Size of the business, Industry you are looking to opt from, your lifestyle (Whether you are interested in traveling or not), etc.
2. Research business for sale
Once you are clear with your entire business requirement, now is the time to start researching businesses up for sale. You have two options to research for a business for sale and these options are Online and Offline method. You can find out if any friend of yours or a family member is willing to sell the kind of business you are looking for. If it is not workable then going online and finding a business of your choice is best.
Remember, for finding a business online the best India business broker platform is Bizzday.com, where you can find any kind of business opportunities from a restaurant for sell to franchising a school, automobile company for sale to manufacturing company for sale. Bizzday.com is a reputable marketplace for buying businesses online.
3. You may want to work with an online business broker.
Even after doing a lot of research you could not find a business for sale, then another option you can choose is to work with a business broker. You can tell your area of interest and negotiate the terms and conditions of your eventual business purchase.
India Business brokers will charge you a commission—around 5 to 10 percent of the purchase price for the work he will do for you — but they only get paid when you buy a business. The best online business broker I have seen is Bizzday India business broker, they do not charge anything for listing business in their portal.
4. Complete due diligence.
After finding a business of your interest, the next step is to complete your due diligence. It is advised not to jump into purchase decision the moment you find your favorite business. You need to do a lot of work before you make the final purchase.
Find a business online is not the easiest job, need to analyze a lot. It is required because you never know what the defect within the business is. Before you decide anything, get your acquisitions team assembled. You’ll need an acquisitions attorney and an independent business valuations firm to help you determine the value and health of the business.
5. Know why the business is put to sell.
You should always know the reason why the seller has put his business on sell. Though, it is not always necessary that something is wrong with the business. There are myriads of reasons seller sells his business such as their age, inability to handle a business, maybe now the seller wants to retire or maybe the seller has got bored of existing business model, or maybe he is willing to start something new, or maybe he is shifting to some other location, likewise. The reason could be any, but it is crucial that you know the real reason. Of course, you will never want to invest in a loss-making company. Mostly the seller interest may change from small business to larger business idea. In any India biz for sale, the reason may be similar or due to loss.
6. Get the business valuation done.
It is crucial that you get the business valuation done and determine the worth of the business, and know-how the current owner’s connections and expertise can affect that value. For instance, in a business-to-business company, running a business for sale could make the former owner’s clients leave, which can seriously impact the value of the business.
Also, make sure you have a professional accountant to evaluate the business’s written financials. Buying a business for sale is a liability, so don’t leave any stone unturned. Hire a business valuation consultant to evaluate and give a market value of your business. Now you can quote a price for your running business for sale.
7. Try to know about sales taxes and payroll taxes.
Get all the information about the sales taxes and payroll taxes (if the business has an employee other than the owner). You need to get the entire “clearance letter” from all the significant authorities.
8. Negotiate a “letter of intent” or a “term sheet.”
A letter of intent (or LOI) or term sheet, is a short, two- or three-page agreement between the buyer and the seller of a business. LOI basically speaks about the important terms and conditions of the sale. For instance, it includes the purchase price, the payment mode, the assets that will be sold to the buyer, the ones the seller will keep for his own use, the terms, and so on so forth.
9. Arrange for the funds.
Once you’ve settled on a purchase price for the business for sale and know how much funds you need to buy it, you need to source finances. Which you can source from:
Seller financing: In this setup, the seller allows the buyer to make payments over time to purchase the business, usually for the purchase price plus interest. If you think you have this option, this will be the best option for you.
Financial investor or Venture capital: In this model, you will partner with someone else to purchase the business — they are the financial investor, and you are the on-the-ground operator.
Business loan: Another option is to take a business loan from any bank with low interest. Or you can even try some traditional methods.
Well, remember that each financing source comes with its own pros and cons, so do your research well. Also, you can talk to an independent financial advisor to make sure the funding source you go with is the best choice.
10. Draft the sales agreement
Now you have chosen a business, even negotiated the terms, and secured the funding to make a purchase. Now is the time to draft the agreement and sign on the dotted line and get the business on your name.
All these things you will have to experience while buying a business for sale. But, make sure you work with a reputable acquisitions attorney. Also, make sure you completely understand the terms and conditions of the agreement before you sign. Don’t leave any doubts or ambiguities left unanswered or unsettled before you finally sign the terms and make the payment. Try www.bizzday.com for all your business buy-sell needs.