For many, the American dream of owning a business is in queue right behind owning a home. I was a teenager when I owned my first business. Since then I have bought or started many businesses and helped others do the same. Here are some common mistakes I have witnessed or committed myself.
Paying too much
This results from the combination of all other mistakes. Many new business owners set themselves up for failure by paying too much, which results in higher loan payments, lower operating funds, and reduced borrowing capacity.
Letting your emotions rule
If you have always dreamed of owning a business, it is very easy to get caught up in the strong emotions invoked by seeing those dreams coming true. To counteract your emotions, take your time, do your homework, and enlist the help of objective advisors.
Paying for potential
You should only pay for the business as it stands at the date of purchase, not what it could be in the future. You will have to spend time, effort, and money to develop its potential. The seller chose not to invest these things, so he does not deserve to be paid for them.
Not evaluating yourself
Do you have what it takes to run this business? Try to match your strengths to the important duties you will be required to perform. Running a small business requires the owner to do many things. No one can be good at them all, so make provisions for those areas in which you are the weakest. Some tasks like payroll and bookkeeping can easily be contracted to outside vendors. Possibly your spouse, other family member, or a partner could do things that you cannot or do not want to do.
Not building a team of experts
At a bare minimum, you should enlist the aid of an attorney and a CPA. The attorney can prepare and review documents, help structure the deal, and make you aware of legal and liability issues. The CPA can provide a financial analysis of the business, and advise you about tax and accounting matters. You should consider adding a business valuation professional. His valuation report can be used to determine the reasonableness of the asking price, negotiate a lower price, and provide valuable information about the business, the industry, the competition, and the economic conditions.
Relying on bad information
You should verify all important information about the business. Your CPA can check financial information like receivables, payables, and inventory. Your attorney can review loan documents, leases, and contracts. Your business valuation professional can analyze the competition, the industry, and the economic conditions. Use independent appraisers to value real estate and equipment. Get a credit report on the business through your CPA or banker. You can do some of the investigating yourself to save money, but do not cut too many corners – it may cost you in the long run.
Changing too much, too fast
Once you own the business, you will be tempted to start making wholesale changes from day one. You risk alienating long-time employees and customers. Unless the business is in bad financial condition and needs immediate action, its better to take some time to get to know the business, your employees, and your customers before making changes. This is a perfect time to solicit suggestions from employees and customers.
Buying a business because you like to do what the business does
One reason restaurants have a high failure rate is people buy or start them because they like to cook. Very few restaurant owners spend time cooking. Their time is spent managing staff, ordering supplies, doing paperwork, and handling daily crises. A small business owner must wear many hats – including that of manager.
Not being interested in the business’s product or service
I made the mistake of thinking that because I am a CPA and smart that I could own and operate any business. I bought a business that sold high-performance auto parts to young men who drove jacked-up, four-wheel drive pickup trucks and went to the drag races every weekend. I did not do either and never understood why anyone would. I could not relate to my customers and went out of business in about a year.
Conclusion
Buying a business is a complicated, emotional process. By avoiding these costly mistakes, you can prevent turning your dream into a nightmare.
Don’t Let Passions Rule When Buying A Business
Buying Bar Stools For Your Home Or Business
Are you opening a bar or do you simply want to improve the look of your kitchen counter? Then you probably need some good bar stools? Don’t know what to buy? Read the guidelines below and stop the confusion.
1. Consider The Height
You should consider the height of your counter or bar when buying bar stools. Ideally, there should be 10-12 inches between your bar stool seat and the top of your counter or bar. For example, if you have a 36 inch counter or bar then you will need a 24 or 25 inch seat height bar stool. If you have a 48 inch high counter or bar then you should buy a 36 inch tall bar stool. If the height and size of your bar or counter is unique you can have a bar stool custom made for it. At an additional cost, some manufacturers will cut the legs of available bar stools to accommodate the height of any bar or counter. For example if you need a bar stool that is 27 inches in height, then buy one that is 30 inches high or more and have it cut to 27 inch size.
2. Swivels
When it comes to swivels there are generally two types. And choosing one all depends on personal taste. The first is the regular swivel which provides 360 degree turning and works on most styles of bar stools. This is the only type that should be used on a backless swivel bar stool. The elderly, disabled and children would find it easy to get on and off this type of bar stool that‘s why it is ideal in the home. The second type of swivel is the memory swivel. This type of swivel has a spring loaded mechanism that allows the stool to return to the center position when the person sitting on it gets off, providing a neat look all the time. It also saves users from manually turning the stool to a central point. The memory swivel only turns approximately half way for people to get on and off it.
4. Backed Or Backless?
Keep in mind that backless type bar stools are designed for short duration sitting. These type of bar stools come in a variety of seat choices and is available in either wood or metal. There are generally three types of backless bar stools: the standard round seat which has a smooth surface, the saddle dish which conforms to the body surface for added comfort, and the round cushion which has a wood base and comes with a padded cushion in the fabric of your choice.
5. Style & Material
If you choose to buy bar stools with backs then you will also find a variety of styles and make from wood, metal and iron as well as the fashionable “stainless steel finish” which is chosen by most designers. Wooden bar stools with backs come in Arrow Back, Wheat Sheaf, High Spindle back, the low curved back and the low spindle back. Wrought iron bar stools on the other hand, come with “motif” backs with your choice of motif design to fit your décor and lifestyle. These type is ideal for restaurants and bars.
6. Arm Rests?
If you require a bar stool which provides total comfort then buy the type that has a back and an arm as well. The arms provide additional comfort while eating or drinking. The only disadvantage of these kind of bar stools is that they would require additional space at the counter or bar. When you do buy bar stools with arms then make sure that you consider turning space when installing them.
7. Buying Tips
- If you can, purchase bar stools in a store with good professional customer service people
- Buy bar stools that are backed by individual factory warranties for your own peace of mind
- Determine the number of bar stools you will need
- When choosing between metal or wood, take note of their differences. Wooden stools have a warmer feel while metal ones are usually contemporary
Buying A Franchise Versus Starting A Business
Starting a business can be an exceedingly rewarding endeavor. From its inception you have complete authority on all decisions big and small - something as imperative as planning a restaurant menu, for example, to choosing what color and style of blinds to hang in the windows, you control everything.
Additionally, for those lacking the start-up capital to purchase or rent a location, you can start a business from home with little more than a computer with Internet access.
As attractive as this autonomy seems, however, starting a business from scratch is not without pitfalls.
For instance, there are high failure rates for new businesses. It takes time and effort to develop your business plan, secure financing, acquire the necessary licenses and get a clientele base. Indeed, it is wise for new business owners to have six months to one year of income set aside to subsist on while the business gets its footing. And, unless you have a wholly unique business idea, you will likely find yourself in competition with franchise businesses that enjoy vast brand awareness and customer loyalty.
This brand awareness is one of the major pros of buying a franchise business. You will be working within a proven system and enjoy instant brand awareness and credibility.
Additionally, a network of support is available to franchisees. This includes technical and managerial support from individuals who are knowledgeable about your specific business as well as the benefit of shared marketing.
And, if another franchisee in your area airs a commercial or sponsors an event, it stands to reason that your franchise location would share in the customers purchased by your neighbor’s advertising dollars.
All of these facts add up to a quicker return on your investment because your franchise business is recognized from the moment you open its doors for the first time. Also, should you find that you are enjoying great success with your franchise business; expansion is far easier with franchises than with a small business.
Finally, if it’s the food, hospitality or retail industry in which you’re interested, franchise businesses have a much greater success rate in all of these areas.
Despite all of these redeeming qualities, a new business owner should remember that a franchise business is not a guarantee for success, and the start-up can be quite costly. A franchise business requires the same initial investment as a new business where location, supplies, inventory and employees are concerned, but it has the added cost of a franchise fee which varies widely but can be as much as several hundred thousand dollars.
Franchise Red Flags
Entrepreneur.com lists five red flags that should alert a new business owner to a potentially poor franchise choice:
One is the franchise’s litigation history, which must be made available to prospective franchisees in the Uniform Franchise Offering Circular, or UFOC. A new business owner should look for how many cases the company has been involved in with franchisees. Anything greater than one or two cases per hundred franchisees is cause for concern.
Second, you’ll want to examine the turnover of units in the company, also available in the UFOC. How many franchisees have left the company and why? Was it due to failure or the sale of a successful unit to a new owner? The answer to this question can help determine—at least partially—how successful you might expect your unit to become.
Another factor that should disquiet a prospective franchisee is, after sincere research, an inability to come up with any substantial numbers concerning things like sales and profits. If it seems that this issue is skirted around, another franchise may be a better option.
Additionally, before buying a franchise business, you should ask around about the relative happiness of other franchisees. Talk to other franchise owners. Are they happy with the support provided to them by the company? Are they pleased with the success of their own units? A preponderance of unhappy franchisees suggests that you may be unhappy in this franchise as well.
Finally, although it seems simple enough, a brief look into whether your cultural and moral values mesh with those of the franchise might be easily overlooked. Is the franchise run by individuals whom you deem to be honest and that share your ethical guidelines? If not, it may be a difficult system in which to work.
Top Franchises of 2007
The Franchise 500® is a list compiled by Entrepreneur.com using the same criteria to judge each company, no matter what the size. These factors are “objective and quantifiable” and include, but are not limited to, the company’s financial strength and stability and the growth rate and size of a company.
Entrepreneur.com examines the start-up costs for each franchise, the length of time the company has been franchising, as well as some of the factors on their red flag list, particularly litigation and turn-over rates. They find out whether the company provides financing and use an independent CPA to audit its financial data. They insert all this data into an exclusive formula and assign each company a cumulative score. Then, the companies are simply ranked based on those scores.
Just a few of the franchises you’ll find on the Franchise 500® are: UPS Store/The Mail Boxes, Etc., Liberty Tax Service, Super Cuts, Two Men and a Truck, Golds Gym, Arby’s, Microtel, Beef O’Brady’s and Chem-Dry Carpet, Drapery and Upholstery Cleaning.
While the Franchise 500® can be a valuable resource for someone considering buying a franchise, Entrepreneur.com does not evaluate subjective criteria, and these areas—such as franchisee satisfaction—will need to be researched independently.
Franchise Business Opportunities: The Pros And Cons Of Buying A Franchise
Have you always wanted to go into business for yourself? If so, it's possible that you've considered whether buying a business franchise is the right choice for you. Starting a business in any field is a significant life and professional decision, and, as with any major decision, it is important to weigh all of the pros and cons before taking the leap into a business franchise opportunity.
There was a time when someone wanting to start a business would follow the traditional route of selecting an industry, researching and establishing financing, and then hanging a shingle on the doorpost. These "mom-and-pop" businesses in many ways became the backbone of economic growth and development. Yet, as many entrepreneurs will readily tell you, independent businesses, even with their allure, often carry great risk, and the vast majority of small businesses fail within the first few years of operation.
Enter the franchise business opportunity. Although franchising is a relatively new business concept as measured against the scope of history, it is a business option that carries a much higher success rate than traditional independent businesses, and this is particularly true if you are a first-time business owner.
According to AllBusiness.com, a leading business information and resource portal, among the advantages of purchasing a franchise over launching a traditional independent company are "instant brand awareness and credibility, administrative and/or technical support, franchisor-provided training, quicker return on investment, strong management, and a network of other franchisees and associations dedicated to supporting franchisees."
While as an independent business owner, you are solely responsible for costly promotion and marketing of your product or service, as a franchisee, you usually have the benefit of national media marketing and advertising done by the parent franchise company. In addition, independent local businesses often find themselves in direct competition with well-backed franchises that simply have more resources to promote and operate their businesses.
That said, however, the very ordered nature of franchise business opportunities may come as a disadvantage to some, as by an established franchise system the creativity of the entrepreneur is often curbed. Yet, given the support available to franchise buyers and the numerous low-cost franchise opportunities, for many, purchasing a franchise still holds noticeable advantages over starting a traditional business.
Thus far, we have focused on the benefits and drawbacks of purchasing a franchise opportunity as opposed to opening a traditional business. But perhaps your choice is between buying a franchise and remaining at your traditional job or, if you are just entering the workforce, between purchasing a franchise opportunity and getting a traditional job.
There are unquestionably distinct advantages and disadvantages of buying a franchise business opportunity, and if you are considering taking the leap from employee to entrepreneur, it is important to carefully weigh both the pros and the cons of purchasing a business franchise. Benefits of Buying a Franchise As reported by AllBusiness.com and the International Franchise Association (IFA), the benefits of traveling the path of business franchise ownership are many, and they include:
1) Probability for success - With an established support system, franchisees are often able to avoid many pitfalls that lead to the failure of numerous small independent businesses.
2) Brand recognition - Customers become familiar with the franchise brand and learn to trust that brand, thus increasing business for franchise owners regardless of location.
3) Availability of training and support - Franchisors offer training programs for new franchise owners prior to the "grand opening" of their franchise outlet, and once the franchisee's new business is "up and running," franchisors provide ongoing support in the form of meetings, networking, additional training programs, research & development, etc.
4) Joint purchasing power with other franchises - While many independent business owners lack sufficient resources to do extensive advertising or even to maintain inventory at bulk levels, franchising allows entrepreneurs access to the franchisor's purchasing system so they can leverage outlay to achieve a greater return on investment.
5) Experience of the franchising company - Perhaps the most compelling advantage of franchising is the benefit of the experience of the franchisor. This significant "pro" minimizes risk among franchise buyers both by helping them avoid common mistakes and by granting them access to proven systems of business operation.
Drawbacks of Buying a Franchise
Even with their allure, however, franchise ownership also carries several cons that should be carefully considered before making the decisions to become a franchisee.
1) Risk - Although franchising significantly reduces the risk of business ownership, it does not eliminate it altogether, and as with any entrepreneurial venture, the success of a business franchise depends largely upon the efforts and determination of the franchise owner. It is by no means guaranteed.
2) Comparison with other franchises - While brand recognition is listed under the "pro" column, it also has the potential to be a "con" in the world of franchising. Just as consumers learn to trust a brand based on positive experiences, one negative experience can turn a buyer off to your franchise, even if your particularly branch was not at all involved in the negative scenario. Thus, the very nature of franchises and one of their chief success components also can present a primary drawback of franchise ownership.
3) Lack of independence - Again, although proven systems of business offer great benefit to the franchise owner, operating within the franchise system also imposes limitations on the entrepreneur. He or she is often is not free to pursue creative ideas at will, as the franchisor requires adherence to established rules and regulations.
4) Management responsibilities - When considering buying a franchise, it is vital that you are honest with yourself regarding your management expertise and capabilities. This is an area that many do not automatically relate to franchising, but the reality is that franchise ownership often requires human resources and business management and development. And this is often easier said then done. Although prior experience is not always required, honest evaluation of your current skills is paramount to measuring your potential for success.
5) False expectations - Franchising is by no means a "get rich quick" opportunity, but sadly many franchisees carry unrealistic expectations regarding their capacity to earn significant income in a short period of time. Just as any business requires extensive determination, hard work, and steady commitment, so, too, does franchising, and it is important that anyone considering buying a franchise business opportunity keep realistic expectations regarding the effort involved.
Inarguably, franchise businesses carry great potential for success. Yet they also present unique disadvantages to the franchise owner. Through carefully weighing all of the pros and cons, you will be able to determine if buying a franchise is the right choice for you.
Buying A Franchise Business - How To Choose?
Buying a Franchise is a great business opportunity as the majority of franchisees are still trading successfully after 7 years (source - US Department of Commerce figures). Before you start looking at franchises, decide which market niche you want to enter. Choose a field that not only creates a livelihood but one that you personally will enjoy.
You also have to analyse your self. Are you good at sales? If you do not like being cooped in to one environment, then a franchise which demands that you out and meet people might be good for you.
Do you prefer it if the customer comes to you? If you prefer to have a retail outlet where you task is to ensure that the environment is as conducive as possible so that customers will be more inclined to shop, then a fast food franchise or similar might be up your street.
Where does your expertise and strength lie? This analysis will determine the franchise that you choose. Always choose the option that is right for you!
Some franchises do all the market research for you and even help you to choose a location for your business. Your job is then to manage the business, keep proper accounting records, always be at hand and control the staff. This would be ideal for a person with good management skills.
Other franchises ask you to work from home, set up a mini office and then go out and network with local business to generate your income. This might suit people who do not like to be tied down and handle rejection fairly easily.
Once you have found the niche that you enjoy, then start looking at all the franchises available in this field.
Choose a franchise which has a proven track record, and then speak to existing franchisees. By speaking to them you will be able to quickly understand the business and the pit falls. Spend your free time analysing the market and visit the library if you require further information.
Most franchisors offer excellent training and long term support. Some even have refresher courses throughout the year which you can attend.
The advantages of working for yourself, but not by yourself are what many franchises try to encapsulate. The disadvantages of buying a franchise are that you have are restricted in many areas.
If you’re ready to make the commitment, franchising can be a rewarding, and often highly lucrative business. Remember to take professional advice before signing any legal documents.
Corporate Gift Buying Essentials
Buying a corporate gift can become a daunting task. Giving it is worse since you have the intention to gain business ties, connect with clients, and send your message of giving thanks. Knowing the following corporate gift buying essentials will increase your chances of attaining these goals.
Know the company policy – Some companies prohibit gift giving; some have dollar limits on the gift item; while other don’t have limits at all. Check on this particular detail so that you will know how much you have to spend on a particular item to avoid your gift being sent back to you.
First impression lasts – Packaging is important. This will give the first impression to the receiver. A good packaging will send a message to the recipient that he or she is important to you. A poor packaging on the other hand will tell the recipient that the item inside is not that important, or worse, the recipient may think that he is not important. So regardless of the price of the gift inside the package, it is inevitable that a corporate gift is packed appropriately.
Handwritten cards is much appreciated – Yes, it is easier to buy a Hallmark card and put your signature on it together with your gift, but it will leave a more lasting effect if you prefer having your message handwritten. This would mean that you personally made the massage to the person and not use a ready-made one.
Deliver the gift personally – If your gift does not require a crane or more than one person to carry, make it a point to personally deliver the gift to the intended party. This will create a better and lasting impression of you once he opened the gift.
Know the cultural differences – For Germans, red roses mean romantic intentions. For Chinese, a white gift wrapping symbolizes death. For Japanese, a gift in sets of 4 means death. These are some of the cultural differences or you can say symbolisms that you need to take note of when considering giving a corporate gift to someone of another culture. You may have a clean intention but it is safe to follow and respect who they are and what they believe in.
Know the recipient's wants – Knowing what kind of corporate gift to buy is very challenging and is often very risky. Sometimes, if you have no idea on what to give, you often end up giving the wrong kind of gift. This will ruin you as well as your company image. To lessen the difficulty and reduce the risk, know the person who will receive the gift what his wants, his hobbies, interest, etc. What is the best way to do it? Make a call and ask him such information.
Go for quality – The corporate gift often reflects to your company's image. It is hard to build up reputation and good image, do not ruin it by giving something of a low quality. Choose a corporate gift that is of high quality but does not destroy your budget.
Check the IRS deductions – The IRS Publication 463 is something you should know of since business gifts in America are tax deductible (as much as $25/person in a tax year). This excludes shipping the gift and packaging. Other rules may apply to other types of business structure.
Bulk Buying Of Bead And Jewelry Making Supplies Increase Your Profit For A Home Based Business
All you need to start up your own jewelry business are beads and jewelry making supplies. Making your new jewelry business a home based business makes it even more economical. Your bead and jewelry making supplies are very inexpensive, since you already have your hands, and there is no overhead when working out of your home.
Bulk Buying
Your bead and jewelry making supplies can and should be bought wholesale and also in bulk. It is much cheaper for the new business owner to buy their beads and jewelry making supplies in bulk. The bead and jewelry making suppliers give deep discounts when the consumers buy in bulk quantities. It would be wise to select one type of jewelry to make at first. Again, it is cost effective, because your inventory will be limited to a specific type of bead or jewelry component. And being a new jewelry business owner, this gives you the opportunity to practice on the specific item until you perfect it.
Choosing Beads
When choosing your bead and jewelry making supplier, remember to research the company before making a decision. It is always wise to ask a fellow jewelry business owner who they would recommend. If the supplier gets good reviews from fellow artisans, then you generally can depend on that supplier.
It’s also a good idea to decide on one style of bead to use before you pick a supplier. Maybe you should buy from a supplier who specializes in the one specific bead you are interested in. There are hundreds of locations for bead and jewelry making supplies all over the world. A good rule of thumb is that if you are choosing, for instance a Bali pearl, you should buy from a supplier in Bali. But then again, Austrian Swarovski crystals can be purchased in the U.S. for a very fair price. But normally if you are seeking a bead from a specific region in the world, the cost of a middleman is taken out if you buy direct.
There are hundreds of internet sites where you can find bead and jewelry making supplies. The number of bead suppliers alone run in the hundreds. If you are looking for the average wooden, ceramic, plastic or glass bead, the internet can become your best friend. All of the bead and jewelry making suppliers have competitive pricing. But be sure and research the quality of the bead before you make your final selection. If you follow all of the above and you already know how to make jewelry, your home based jewelry business will be simple to start. Good Luck!
Benefits Of Buying Certified Pre Owned POS Systems For Your Retail Business
Are you a retailer who is currently running a successful, profitable retail store or chain of stores? If you are, is your business currently using POS systems? POS, which is the abbreviated term for point of sale, systems are important to the success of a retail business, particularly in today’s retail industry. If you are aren’t already running POS systems, which include POS cash registers and POS scanners, you will want to look into making a POS investment, as it is one that will likely pay off.
As it was previously mentioned, POS systems commonly include POS cash registers. POS cash registers are vital to the success of any business, especially one that relies on the tracking of inventory. Whether your retail stores sell clothing, food, home and garden products, or even pet products, you likely want, as well as need, to track your inventory. By having a POS cash register, it is relatively easy to do so. With the correct POS software and the knowledge of how to run the cash registers, you can track the inventory inside one or all of your stores, with little effort required on your part or the part of your employees.
As important as it is for your business to have POS systems, including POS cash registers, you may be wondering about the cost of doing so. Yes, POS systems may be considered fairly expensive, but it is important to remember what you are getting. Many business owners fail to realize that POS systems, including POS cash registers, can cut costs. For instance, by having a POS cash register with a built in scanner, your cashiers can easily save time by scanning all purchases, instead of entering each purchase in by hand. When the correct POS software is installed in your registers, you should be able to track your inventory for each of your stores, making it easier to know what to order. In fact, many POS systems automatically know what needs to be ordered. In many instances, you will find that POS systems pay for themselves, in no time at all. This is essentially considered getting a return on your investment.
Despite being able to pay for themselves overtime, there are many business owners who don’t want to incur more debt or expenses than they need to. If you are one of those retailers, you may want to examine certified pre owned POS systems. Certified pre owned POS systems are ideal for all retailers, but partially those who are looking to profit and stay in business for years to come, while successfully limiting the amount of money spent on equipment at the same time. Of course, saving money is the greatest reason as to why you should at least look into buying certified pre owned POS systems, but there are additional reasons, which are briefly touched on below.
In addition to being able to save money or cut costs, purchasing certified pre owned POS systems is ideal because the products actually work. In fact, they work like new. While this may seem silly to mention, it is important to remember. When many of us, particularly those looking for the best, think of pre owned POS systems, cheap, poor, or secondhand comes to mind. Yes, you will want to use your best judgment when purchasing certified pre owned POS products, but you shouldn’t have a problem. By purchasing your certified pre owned POS products from a well-known and reputable POS supplier, you should get a certified pre owned POS system that is like brand new, yet for a fraction of the cost.
If you are interested in modernizing your businesses, to keep up the ever changing, fast paced retail industry, you will want to examine POS systems and their many benefits, all of which can help to improve your business. As previously stated, certified pre owned POS products are just as good as brand new POS products and they make it easier to get a return on your investments. For affordable certified POS systems, including POS cash registers, POS scanners, and much more, contact VisionPOS.com. VisionPOS.com is not only well-known for their large selection of certified pre owned POS systems, but their amazing customer service, technical support, and much more.
Business Buying Guide - Detail
First, You have to determining your investment. Usually minimum down payment made by the buyer is 30% of the purchase price. For example, if the business purchase price is $100,000 and loan amount is $70,000 (70%), then the buyer's down payment needs to be $30,000 (30%). Other possible expenses are inventories, supplies, escrow fee, license and permit fees, franchise transfer fee (if applies), etc.
And then you have to set criteria of desired business. Which includes location of business, type of business, price range of business, desired income of business.
After you decide your investment amount and criteria of business, you will need to find a right business that fit your needs. You can search business through online business listing service site like www.BusiMarket.com Business For Sale, local newspapers, or through local business brokers or real estate agents.
If you find a business that you want to purchase, you will need to evaluate the business through current owner's income information and your projected income for short term and long term.
And then you need to make decision to purchase business or not. If the business is right for you, you need to write a very descriptive and detailed contract (Purchase and Sale Agreement).
When you are writing an offer, you have to make sure the contract includes the followings: Your offering price, Initial deposit amount, financing terms, closing date. Other terms and conditions that can be added to the contract is buyer's loan approval, lease and lease approval from landlord, buyer to obtain all necessary licenses and permits, franchisor's approval of ownership transfer, the buyer's Satisfaction of books and records, closing cost allocation, buyer training session, business equipment and fixtures in good working condition, inventories and supplies amount, seller's agreement not to compete, etc.
After you finish writing an offer, you need to present your offer to seller. Negotiate the price, terms, and conditions and settle with final price and terms and condition.
Now you will need to allocate the purchase price of business that you are buying. After you done purchase price allocation, you will need to apply for loan, license and permits.
and then you will need to obtain a lease or sublease. You will need to make sure you obtain the lease or get an approval of lease assignment before close of escrow no matter what happened.
And then on or the day before the closing date, you will need to review the equipment list that is provided at the time of the acceptance of the Purchase and Sale agreement and buy inventories and supplies. And then you can do the closing on the closing date.