Important Things to Know When Trying to Buy a Business During the Pandemic
Buying a business is a great way to make your money work for you. Building a business from scratch takes hard work, great sacrifice, and extensive planning. There is an easier way to become an entrepreneur and make the most of your business talents. Purchasing a company that is already in operation can help you achieve your financial and life goals without the strain of creating a start-up.
Before you buy a business, there are 3 factors you should consider:
1. The numbers
Buying a business is an investment. You should therefore review your finances and decide how much of a risk you can afford to take. This will help you determine the kind of business that it is best for you to purchase.
2. Your talents and lifestyle
You must be realistic about your skills, expertise, and experience. If you have never run a business before but know how to manage people and resources, you should consider purchasing a franchise license. In a franchise, the day-to-day operations are already mapped out for you. Your main job is to ensure that things run smoothly. If you are an experienced independent business owner, then it may be right for you to buy an existing business. It will give you more room to innovate and to further develop and grow the company.
3. The condition and prospects of the company
You must review the books of the existing company. You should also review the existing infrastructure, supply and vendor contracts, leases, inventory, and other relevant features.
Thinking through these basic concerns and reviewing the current state of the business will allow you to make a firm decision on whether to purchase. If you decide to go ahead with the purchase, you will need to look into the following things:
- Licenses and permits you may need from the current owner or that you may need to apply for yourself
- Zoning laws and requirements that may affect your business
- Environmental laws that you may need to adhere to
- Tangible assets and how to value them
Once you are ready to close the deal, you will need to bring in a business attorney Bucks County. A business attorney in Bucks County will help ensure that all legal requirements have been satisfied and will help you sort through the final details of the transaction.
A business lawyer in Fairless Hills PA will also help you create and evaluate important documents, including:
- Letter of intent
- Confidentiality agreement
- Contracts and leases
- Financial statements
- Tax documents
- Sales agreement
Buying a Business During the Pandemic
COVID-19 has devastated the American economy and led to the closure of many businesses. But people are starting to figure out ways to operate despite the difficulties created by the virus.
In the first place, struggling business owners may be more willing to sell during the pandemic. Independent entrepreneurs who do not have the capital and resources to operate safely may be more willing to turn the reins over to someone with the money to transform the company so that it thrives in the current environment.
A recent survey suggests that companies in the hospitality industry, for example, are changing the way they operate
Even the industry that has been hardest hit—hospitality—still has a future despite the crisis. Restaurants are adjusting their business models to do carry-out service and outdoor dining. And many retail shops are transitioning to e-commerce.
You should also consider buying a business in an industry whose fortunes have been boosted by the pandemic. These include:
- Cleaning services
- Meal prep and grocery delivery services
- Drive-in movie theaters
- Home fitness equipment companies
- Landscaping companies
- Gardening suppliers
How Business Attorneys Bucks County Can Help
Business attorneys Bucks County PA provide a range of services that help investors purchase the companies they want. Buying a business in Bucks County should not be done without a business attorney in Fairless Hills PA. The Olen Law Office can help you in this endeavor.