Is this likley to happen for a small business?

Question

you buy a business for sale

you see the records of the business
they are good then you buy the business
and it automaticly fails

is this likley to happen?

Answer 1

Automatically? No, not likely if the records you were given were legitimate. You may lose some customers that were loyal to the previous owner instead of the store, but you can bring your own customers in. The only reason the store should fail right away is if it was already failing and you failed to see it when looking at the financial records.

Answer 2

Absolutely, in a nutshell the main reason would be inexperience, the chances are at least average, and likely higher if you have to ask.

Buying a business is not like buying a car, or a house. When you buy someone else's business, you are in effect acquiring a chunk of that person's heart and soul. A business is built with and on the owner's blood, and a change in transition can be as devastating as when using the wrong blood type in a transfusion... The only difference is that death in the case of a business need not be permanent, but revivals don't come cheap and this is likely where those who fail do so.

In order to make it you need at least the finances to survive for a full 2 years without any income, on top of what it cost to buy it, you can not count on the report's future sales to pay for this. That, or at least 5-6 years of operating a business similar in nature, if you have this or the finances then it's not so bad.

Answer 3

you determin if the buisness does good by your efforts--you cant just open and put a barrel by the door for the customers to fill $ for you lol