Buying a business is a major decision for someone to make, and it’s not one that should be made without careful consideration and planning. Any successful entrepreneur got where they are by doing one thing consistently: asking questions.

Business people shaking hands

In my experience at Thornton Law Firm, Triangle entrepreneurs will likely see the most success when they are knowledgeable about what they’re getting into. There’s a lot that goes into owning a business, so don’t be afraid to seek counsel from experienced business owners and other legal resources.

3 questions to ask before buying a business in the Triangle area are:

  • Why is the owner selling? There are many reasons a business owner will decide to sell their business after some time. Perhaps life circumstances prevent them from maintaining the business, or they’ve decided to pursue a new endeavor. Regardless of the reason, buyers should make sure to explore the owner’s reasons for selling to avoid a bad purchase.
  • Are there any financial concerns? Buyers should not hesitate to collect all financial information available for them to review. Contracts, bank statements, profit and loss statements, and other documents will give buyers insight into the overall health of the business and give a glimpse into future projections. Buyers will want a clear picture of what they’re getting themselves into and easily available, accurate data is the best way to ensure a good purchase.
  • Do I really want to do this work? Too often people may get wrapped up in the idealism of owning a business without considering the day to day requirements. Business owners can rarely sit back and relax while everyone does the work. Instead, they’re actively involved in daily operations and drive a lot of the growth over time. Before buying a business, ensure that this is something you will want to be actively involved in over time.

Prospective business owners have a lengthy checklist of details to cover before their purchase is finalized. If you’re concerned about making the right choice or wonder if buying a business is a good investment, don’t hesitate to start asking questions! Contact us at Thornton Law Firm to learn more about owning a business in the Triangle!