your password has been reset successfully, Please login again.

7 Questions to know before buying a business

There are a lot of factors that determine buyers decision but these questions will definitely help you in making up your mind.
BY Akshay Arora
Feature Writer, BusinessEx
Feb 23,2018

Buying a running business is becoming a trend now as people are more interested in buying an established business rather than starting up. With increasing competition, it is becoming difficult to start a new business and make it successful so thats why entrepreneurs are going for established businesses which are already doing great. But before buying a business make sure that you ask these 7 questions to seller which will help in making up your mind whether buying this business is a good idea or not.

Why are you selling this business?

It is important that you know why the seller wants to sell the business as it will have a direct impact on your buying decision. There are so many reasons but if its related to some unresolved issues in business or with lenders or anyone else that might hamper business then you should think twice before going for it. Make sure that you understand sellers perspective on why he/she is interested in selling the business.

How did you arrive at the asking price?

There are a lot of factors that determine in finalising the selling price of the business. You must know what made the seller decide to ask this price. There are various approaches which help in determining the business value so it is better that you also do it on your own as well.

Can you show me business financial statements?

Make sure that you do a proper due diligence before committing anything. After due diligence you will get to know the actual position of business in terms f finance, goodwill, assets, debts, etc. Go through financials carefully and also ask for tax returns so that there will be no issue later on.

Do you have any past or pending lawsuit?

You need to ask the seller whether there were any lawsuits filed against the business or are there any pending left. As you are going to buy this business so you wouldnt want the government to interfere in the business operations right, so find out the reason behind the lawsuit and whether it's resolved or not.

What would you have done differently?

An entrepreneur always has some regrets because they think that they could do something different which may put them in a different situation. They know their business well so if you ask the seller this question then there are chances that you might get good insights which you would use it in future.

Ask for the flow of work in the business?

A seller knows how the operations are going on in the business, who all are involved, etc. If sellers help you understand how everything takes place in the organisation then you will get a proper understanding of what you need to do and with whom to deal with for different tasks.

What do I need to know to run this business?

Besides knowing the parties involved in business there are a lot of other things as well which only the entrepreneur can tell you. He/she will be able to give you the knowledge on what you need to do and what this business requires.


Buying a business is a big task as it involves a lot of investment so dont hurry into it. First, you need to clarify all your doubts and must have a proper knowledge of the business you plan to buy. The above-mentioned questions will simplify your buying decision. If you are having trouble in finding business opportunities then register on BusinessEx.

Please add your Comment
SIMILAR Articles
June 29, 2018
Failure is a part of being an entrepreneur but the ability to back up and try again makes a successf ...More
By Sanjana Surbhi
June 28, 2018
There are many such inspiring and motivational stories that will boost you to keep going. To get mot ...More
By Sanjana Surbhi
June 27, 2018
The more you know about where your time goes, the more you’ll be able to hold yourself accountable ...More
By Sanjana Surbhi
June 22, 2018
The key to any successful business is the ability to make right decisions ...More
By Sanjana Surbhi
June 20, 2018
Textile market place covers a wide range of cloth product and accessories such as fibre, yarn, text ...More
By Sanjana Surbhi
June 18, 2018
With changing technology, it is now possible to start almost all kind of business from home sooner t ...More
By Sanjana Surbhi
June 15, 2018
One of the many reasons for failure is that the entrepreneur themselves are unaware of the mistakes ...More
By Sanjana Surbhi
June 14, 2018
To manage an effective team, you must encourage your team and help them out with proper solutions ...More
By Sanjana Surbhi
June 14, 2018
Employees are the wheels of all the companies. You need to keep them motivated and for that you have ...More
By Sanjana Surbhi
June 13, 2018
Social media, a source of entertainment and an idea of time pass is now becoming an important tool o ...More
By Sanjana Surbhi
June 12, 2018
India is the third largest startup economy in the world but only 9 percent of the startup founders a ...More
By Sanjana Surbhi
June 12, 2018
Does work-life balance help people to be more productive. Work is definitely your priority but don’t ...More
By Sanjana Surbhi