The 2 Most Important Factors for Buying a Business

When you’re looking to buy a business, what are the key components that are the most important factors from the buyer’s perspective?  The answers are revealed in this video…


Profit is the number one. You want to buy a profitable, privately-held business. You want to make sure that the seller can prove his numbers to you, and that you have the sense that they have historical financial information that you can dig into with your experts to make sure that you’re buying a profitable business.

Location, Location, Location…

Second-most important aspect of the deal is the lease. Location, location, location! I remember my dad telling me years ago, “You want to create wealth in real estate, you have to buy location.” Folks, location in businesses is 99.9% of the time the most important factor because it’s where the traffic is driven.

You’ll know right away if you have a good location because the revenue and the profits of that location run hand in hand. When you get that, you want to make sure that you have a long enough lease to amortize the debt and make yourself very happy with the rate of return on your investment.

Folks, I wish you a lot of luck. Stay out there, look for it. It’s a hunting game. You have to find the right one. Take the time to find the right business. This is what you’re going to be doing for your living. You don’t want to rush into it. You don’t want to buy the wrong business. You always want to buy the right one.

Remember, always hire professionals that you can work with, that you like, that you understand, and work with them to make sure that you’re doing the right transaction.

Let us know if we can help you find the business of your dreams. We have approximately 4,000 opportunities that we currently represent. We’d love to hear from you. Give us a call today at (877) 735-5224 to speak to one of our experienced business brokers.

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371 thoughts on “The 2 Most Important Factors for Buying a Business

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