Читать книгу Start & Run a Catering Business - George Erdosh - Страница 9

Another common way to buy a business is through a business broker. Business brokers are like realtors; the best way to find them is through recommendations. Your local chamber of commerce is also a good source. The broker finds buyers on behalf of a seller and takes care of the paperwork. According to contract law, a business broker represents the seller, because the seller pays the broker’s commission. A few brokers are willing to represent the buyer. The broker can also assist in selecting an escrow officer. He or she can help in reassigning the seller’s lease to you if there is one on the premises. Brokers’ fees are high since most of them don’t like to deal with small businesses. Their commission is about 12 percent and a minimum of about $8,000.

If you are considering purchasing or expanding an existing business and you don’t have ready cash, your challenge is to borrow money or equity, either by selling shares or stocks or by bringing in partners with ready cash or equity. Both options have advantages and disadvantages, but it is beyond the scope of this book to delve into a discussion on this subject. I mention it here so you are aware of the possibilities.