If you want to buy an existing business, how much will it cost? If you are interested in starting your own business, there are start-up costs that must be considered. For those willing to do the work and study the industry, knowledge of the industry is not required. More on that later.
Also, if a person is willing to sell an existing business, you should wonder why they are willing to sell. If you have any questions about legal issues, you should confer with a licensed Florida attorney.
So this is where you make your first decisions: How will you attract new customers? Aside from the issue of not being able to cover the cost of the business, there are legal reasons for this question. The goodwill may be different than expected, resulting in a higher or lower value.
But if you want to open a particular type of business, your options may be too limited to do anything but open your own. If there are no businesses in your industry listed for sale, you may be required to start your own.
There may be actions in the prior business that will not become apparent until later that will have an effect on the reputation. As you can see, the initial planning is not simple.
How much are you willing to invest? Al Kelley is a Florida business law attorney located in Key West and previously taught business law, personnel law and labor law at St. Plus, there are operational costs that need to be added to the initial purchase price.
Does the business you want open already exist? Otherwise, you may be throwing your investment money away. If however you are planning on starting the business from scratch, failure to know the industry in advance is a recipe for failure.
You can often put clauses in the purchase agreement requiring the seller to assist with the transition and provide basic training. Do you want to start a business from scratch or buy an existing business?
If so, is the business for sale? Are there unstated problems? You must ensure that you have enough capital to cover the business through opening and preferably for the first several moths of operations until the business can cover its own costs.
While it is helpful to know what type of business you want to start, it is not always required. Yet, it need to be done, and done in detail. If not, you have no choice but to open your own business. This article is being offered as a public service and is not intended to provide specific legal advice.
If starting your own business, how long will it take to build up goodwill? This is often seen in the restaurant industry. If a business is undercapitalized, the Courts can allow creditors or others with lawsuits against the business to pierce the corporate veil and sue the owners directly.
Although the restaurant industry is extremely complicated and has a high failure rate, many people believe they have the ability to succeed According to a study, restaurants have the third failure rate among all sectors, and the main reason for failure is incompetence. Is the business not as successful as they imply?
There are countless issues to consider when making these initial decisions. Do you want to open a particular type of business? There is an old adage that everything is for sale at the right price, but the right price might be too high. If not, you can simply look for any business that is for sale.
Many business people start as investors, buying an available business, even if they have no experience in that field. And do you know anything about the type of business you want to open? How easy will it be to get financing?Study 85 Business Law flashcards from Ryan O.
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