In this episode, learn about how you can start the plan and strategy to buy your first business.

Having your own business is great. Building one from scratch? Really hard.

Which is why some entrepreneurs opt to buy an existing business outright. There are other reasons to buy a business too, like acquiring an up-and-coming competitor, or just building your investment portfolio.

The first step is not just finding an available business, but finding one that’s worth buying. There’s plenty of businesses for sale. But ones with financial promise that actually hold your interest aren’t so common. You need to find a business that’s primed for profitability, and isn’t hiding any skeletons.

When you’re ready to buy a business you should look for these things:

Positive cashflow (or a trajectory that shows potential)

An industry you’re familiar with

A diversity of customers (no one client should be more than 20% of revenue, roughly)

A long-term growth plan

A business that you could see yourself enjoying

Where to find a business to purchase

The wider your search, the more likely you are to find a gem. Don’t just stop looking when you’ve found a business that ticks all the boxes. Look in as many places as possible before you start ranking your favorites.

Some of the rocks you can turn over include:

Online broker sites like BizBuySell

Local business brokers

Local attorneys

Local CPAs

Franchisors

Existing small business owners in your ideal industry

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