What Type of Business is a Good Business to Buy?

I often hear from business buyers that they are looking for any type of good business. That approach is very much like finding a trophy wife and saying any lady will do as long as she is exciting. An exciting woman for one man can be a disaster for another. You really need a good fit for your personality. This is the same in a business. You are getting married to your business, and spending more time with it than with your wife.

I am not mechanically inclined so I would never own an automotive shop. I am however a numbers person so selling a product or service where I can use my accounting and sales background would be a good fit for me.

I had an out of work mechanical engineer type person doing pool retrofitting sales for me as a temporary job until he found a new job with corporate America, making very big bucks. He would figure out how to solve the problems the installation crews came up against and automated the quotation process so the price popped up. He was good at both sales and production. He was not however good at pricing the product so that we made enough profit. Everyone has their strong and weak points. Find out what type of work gets you up in the morning.

A salesman can take any type of wholesale or service type business and turn it into a moneymaker, regardless of how well the prior owner has done. A trained retailer is good at working with fixed retail locations while anyone not a retailer will die running a retail storefront.

5% of the owners of most types of business make a very big profit. 30% do very well, while over 50% are starving. The issue is not what type of business is a good business to buy but what type of business will be a good business for you to turn around and create with.

Willard Michlin is a CPA, and offers assistance in the key areas involved in the buying of a business: Due Diligence and Business valuation. He is an experienced, honest and trustworthy consultant. He has published many articles and is in demand as a public speaker in the Southern California business community. You can write to Willard at info@evaluateabusiness.com and he will always answer your questions. He can also be contacted at his Ventura County, California office by calling 800-864-0420. See other articles and information about his services at: http://www.businessbuyingservices.com