e important, but they have value only to the extent that they contribute to future profits. So the true measure of a business’ value is its ability to produce profit.

7.) Before buying a small business, the prospective owner should ask the following questions: i) What am I buying

1.) Most Small Business owners have considered, or will consider, selling their business.

2.) Most prospective buyers do not follow through on the urge to buy a business because they find the prospect of buying a business too complicated.

3.) Although it would be impossible to point out every single item necessary when buying a business, the major requirements are: Deciding on the type(s) of business to buy, Finding the right business to buy, Determining the condition of the business that is being considered for purchase, Valuing and properly pricing the business, Financing the transaction.

4.) Occasionally, a business that is unique and very simple almost manages itself. But if the business is in a competitive field, management ability is probably the most important requirement for success.

5.) A business owner will need to have (or develop) the following important skills: Effectiveness with people, Business and financial management abilities, Experience in the industry.

6.) Buyers are usually tempted to consider value as a fair price for tangible items such as equipment and inventory. These factors are important, but they have value only to the extent that they contribute to future profits. So the true measure of a business’ value is its ability to produce profit.

7.) Before buying a small business, the prospective owner should ask the following questions: i) What am I buying (

to point out every single item necessary when buying a business, the major requirements are: Deciding on the type(s) of business to buy, Finding the right business to buy, Determining the condition of the business that is being considered for purchase, Valuing and properly pricing the business, Financing the transaction.

4.) Occasionally, a business that is unique and very simple almost manages itself. But if the business is in a competitive field, management ability is probably the most important requirement for success.

5.) A business owner will need to have (or develop) the following important skills: Effectiveness with people, Business and financial management abilities, Experience in the industry.

6.) Buyers are usually tempted to consider value as a fair price for tangible items such as equipment and inventory. These factors are important, but they have value only to the extent that they contribute to future profits. So the true measure of a business’ value is its ability to produce profit.

7.) Before buying a small business, the prospective owner should ask the following questions: i) What am I buying

siness, Financing the transaction.

4.) Occasionally, a business that is unique and very simple almost manages itself. But if the business is in a competitive field, management ability is probably the most important requirement for success.

5.) A business owner will need to have (or develop) the following important skills: Effectiveness with people, Business and financial management abilities, Experience in the industry.

6.) Buyers are usually tempted to consider value as a fair price for tangible items such as equipment and inventory. These factors are important, but they have value only to the extent that they contribute to future profits. So the true measure of a business’ value is its ability to produce profit.

7.) Before buying a small business, the prospective owner should ask the following questions: i) What am I buying

ave (or develop) the following important skills: Effectiveness with people, Business and financial management abilities, Experience in the industry.

6.) Buyers are usually tempted to consider value as a fair price for tangible items such as equipment and inventory. These factors are important, but they have value only to the extent that they contribute to future profits. So the true measure of a business’ value is its ability to produce profit.

7.) Before buying a small business, the prospective owner should ask the following questions: i) What am I buying

e important, but they have value only to the extent that they contribute to future profits. So the true measure of a business’ value is its ability to produce profit.

7.) Before buying a small business, the prospective owner should ask the following questions: i) What am I buying (or selling)? Is it a business or a building full of equipment and inventory? ii) What return would I get if I invested my money elsewhere–in stocks, bonds, or other business opportunities? iii) What return should I get from an investment in this business?

8.) The results of the financial transactions of every company should be reflected in its periodic financial statements. These statements are extremely important in buying a small business. They were prepared for the seller, of course, and their contents are available to him. But the buyer, too, should be aware during the early stages of a buy-sell transaction of the information contained in financial statements.

9.) The balance sheet is a statement of the financial position of the business at a given moment in time.

10.) The income statement is a summary of the revenue and expenses of the business during a specified period of time.

11.) If the seller’s financial statements are prepared by an independent accountant, the statements should show whether they were (1) prepared after an audit of the seller’s accounts, or (2) prepared from the seller’s records wit