If you aren’t sure whether or not you should retain the services of a business broker this report discusses some scenarios where paying a business broker may not be appropriate.
Many words have been written about why you should hire a business broker (including by me) but when I searched online for why not to hire a business broker every article on the first several pages (save one that I wrote in 2011 and had forgotten about) was why a business owner should hire a business broker or questions to ask one before hiring one.
In this article I explore some of the reasons a business owner should go it alone and not retain a business broker.
Answer these questions and keep a tally of your answers.
• Is the business more than about two years old?
• Can the business run effectively for an extended period without you?
• Do you have accurate up to date financials?
• Have you reported all income to State and Federal agencies?
• Is the majority of your business spread among many customers?
• Does the business generate more than $50,000 of annual net profit?
• Is it hard to start a similar business (expense/time/skills)?
• Have the sales been stable or gradually increasing?
• Would you describe your employees as loyal and committed?
• Are you able to easily make payroll?
• Would you buy this business knowing what you know about it?
If you recorded more than 2-3 “no” answers you may want […]