This article contains very important information on what to consider when planning to buy a business, how to go about buying

a business and
what to do to maximize profit for a business

A DEFINITIVE GUIDE ON HOW TO BUY A BUSINESS IN 2022

By Kosi Emmanuel Chukwujindu

In this new compelling guide, I will walk you through all you need to know about buying a
business in today’s fast-paced and technology-driven business world. First, we will look at the
factors you must consider before you decide to buy an existing business. Second, we will walk
through the steps on how to buy a business, and finally, I will show you sure-fire ways to
maximize profit for your venture without hassles. Sound good? Let us dive right in…

Section 1: Eight (8) Important Factors To Consider Before Buying A

Business

1 | A Definitive Guide On How To Buy A Business

 This article contains very important information on what to consider when planning to buy a business, how to go about buying a business and
what to do to maximize profit for a business

B uying a business is a big deal. It is not a decision you should make without sufficient
information. Angels, investment experts, asset managers, and business executives are
often faced with the gruesome task of deciding whether to buy one business or another.
A single wrong move could make or mar your entire investment portfolio for a very long time.
To help you make a wiser decision and avoid costly mistakes, I have put together eight (8)
important things to consider when thinking about how to buy a business.

1. Who Are the Owners and who is managing the Business?

Find out who owns the business you are considering buying and who is managing it. This is very
vital in understanding how to buy a business.

2. How long has the business been in operation?

The age of the business, you wish to buy matters. If it is a decade old, it has most likely
overcome the early stage hassles and is well on its way to success.

3. Do they have paying customers and are they profitable?

2 | A Definitive Guide On How To Buy A Business

 This article contains very important information on what to consider when planning to buy a business, how to go about buying a business and
what to do to maximize profit for a business

Unless you are willing to start from zero, make sure the business has passed the concept
validation also known as the proof of concept stage. This means it has traction in terms of real
customers who are paying.

4. Check for evidence of vibrant organizational culture?

Businesses that have a healthy organizational culture tend to be easier to continue managing after
it is sold.

5. Who will run the business after you buy it?

Do you have the capacity to manage the business or will you retain the present managers after
buying the business. Don’t buy a business if you don’t have the skill and time to manage it.

6. Do they have any legal or financial debts you will inherit?

3 | A Definitive Guide On How To Buy A Business

This article contains very important information on what to consider when planning to buy a business, how to go about buying a business and
what to do to maximize profit for a business

Let your team do the due diligence in checking for any subsisting legal suits or backbreaking
debts before you buy a business. Sometimes a business may be put up for sale because the
owners are deep in debt.

7. What upgrades do you have to make after buying the business?

This should be known forehand so that you can make a budget for it. It will also help you
negotiate a fair price.

8. Does the business align with your own interests or vision?

It takes a lot of passion to run a business. It helps if the business you are
planning to buy aligns with your immediate goals.

N ow that we have seen what factors to consider before deciding how to buy a business, let us
walk through the basic steps you should take to buy a business.

Section 2: Step By Step Guide On How To Buy A Business

Follow these simple steps to buy any business, anywhere and anytime
 How to buy a business: Step 1 - Do your due diligence

4 | A Definitive Guide On How To Buy A Business

 This article contains very important information on what to consider when planning to buy a business, how to go about buying a business and
what to do to maximize profit for a business

 How to buy a business: Step 2 - Negotiate the value and price

 How to buy a business: Step 3 - Agree on key management directions after the
sale
 How to buy a business: Step 4 - Pay for the business
 How to buy a business: Step 5 – Initiate the management plan

Right after you initiate the management phase, you will need to work hard to boost the revenue
of the business because after all the whole point of buying and operating a business is to
maximize profit, Isn’t it?

So, here’s how you can do that:

Section 3: Eight (8) Sure-Fire Ways To Maximize Profit For Your

Business Venture

5 | A Definitive Guide On How To Buy A Business

 This article contains very important information on what to consider when planning to buy a business, how to go about buying a business and
what to do to maximize profit for a business

 How to maximize profit #1: Assess And Reduce Operating Costs

 How to maximize profit #2: Adjust Pricing/Cost Of Goods Sold (COGS)
 How to maximize profit #3: Up-Sell, Cross-Sell, Resell.
 How to maximize profit #4: Increase Customer Lifetime Value.
 How to maximize profit #5: Refine Demand Forecasts.
 How to maximize profit #6: Sell-Off Old Inventory

Now we have come to the end of this definitive guide on how to buy a business. We looked at
important factors to consider when thinking about how to buy a business, we also walked
through a step-by-step outline list of actions to take to buy a business, and finally, we saw how to
maximize profit for a business.
Congratulations on reaching the end of this guide on how to buy a business, you may now go
right ahead and go for that business you have been considering buying and make it yours!

6 | A Definitive Guide On How To Buy A Business