National Brokers Network

Questions to ask in buying an existing business real estate broker

home questionsAll businesses start with an idea. And some people think that good ideas make good businesses, but that is not always the case. Even if you have an original idea you feel confident with, there are many other factors that may or may not affect the outcome of your business. The risks involved in starting your own enterprise only serve as proof that it is a decision you must not take lightly.

When you start a business from scratch, you need to create a detailed business plan which will cover all aspects of the business. You will also need to devote almost all your time to it, especially in its early stages. Indeed, starting from zero means taking significant risks. But those risks may be minimised if you enlist the assistance of the right people, such as a business real estate broker. However, if you are not big on taking risks, consider your next best option:

Buy an existing business

One of the reasons that make this a great idea for first-time entrepreneurs is the fact that the existing client base can be tapped into. If you’re considering this option, here are questions you need to ask:

  • What is the overhead cost, including turnover and profits?
  • How many existing customers does the business have (and how many of them are repeat customers)?
  • Who are the business’ suppliers?
  • Does the business have any outstanding debts?
  • Who are the business’ competitors?

If you think buying an existing business is a good option for you, here are tips to make the transition easier and less confusing:

  • Find out whether you really are getting a good deal by seeking financial advice. An accountant would be perfect for the job.
  • Run a credit check to make sure the company does not have bad records.
  • Get legal advice and draw up a contract.

And remember, if even one of these things does not add up, you need to decide whether you want to continue pursuing the sale or if it would be better to drop it and move on. 

There are plenty of business opportunities out there if you just know where to look. Good luck!

Confidentiality Agreement

In Consideration of the Vendor of the subject business, or any other business introduced to the Proposed Purchaser and their agent National Brokers Network (“the agent”) providing information to the Prospective Purchaser, the Prospective Purchaser agrees:

1. To keep all information provided confidential in respect to the subject business and any other business introduced to the Prospective Purchaser by the Agent.
2. That no information is to be disclosed by the Prospective Purchaser to any third party without consent by the Agent;
3. That it will not use for themselves. Or for others benefit, such information other than to Purchase the subject business or other business introduced by the Agent;
4. That any agreement to purchase the whole or portion of the business shall be exclusively through the Agent;
5. To immediately return to the Agent all such information and other details in written form including any drawings and any copies made of written information, notes, summaries or extracts of any document therefor if any when requested by the Agent;
6. Under no circumstances will the Prospective Purchaser make direct contact with the vendor of the subject business or other introduced business without the prior written consent of the Agent;
7. If the Prospective Purchaser breaches this agreement or buys the business direct from the Vendor, the Prospective purchaser is liable to and indemnifies the Agent for any and all losses the agent may incur including economic loss and loss of income.v

Client Signature (Sign on the box below)