if you buy a business that is doing well up until the time the preous owner sold it, are you likley to do well

Answer 1

Not necessarily. If much of the business came as a result of relationships that the previous owner has, you will need to find someway to maintain these relationships. Be certain to check into this -- this can be a very serious issue.

Answer 2

Unlike the stock market which has to always tell you "past performance does not guarantee future results", a physical business like a store or a eatery has a routine. The trick is to learn as much as you can about how it runs before deciding to dive in.

Maybe the owner is just making ends meet, but putting on a darn good show. Maybe the fourth quarter's sales make up for a lagish first and second. These are all things that the owner learned the hard way, and it would be nice if you could figure them out before the cycle of failed small businesses perpetuates itself. And know your facts!

The SBA and the web as a whole has alot of stories and info about big wins and big losses in small business - I advise doing your homework. Buying a business is a life-decision, and should be treated with no less luster.

- J.

Answer 3

As long is there are no bad feelings and the business is kept the same it should, if the previous owner had a good report with his customers and that is the only reason he did well may be a lot harder to win the customer base back unless you have a unique item or product that they can't get anywhere else. The question you want to ask yourself is what made his company so successful and what has changed that may affect that? Good Luck

Answer 4

Well, it depends. If the previous owner was dedicated, and an expert in the business in which he engaged and the new owner isn't this could adversely affect the business. (For example if you bought a womans clothing boutique from someone who worked 70 hours a week and was obsessed with fashion and expect to simply sit back and collect the profits without doing any work, you're likely to come in for a nasty surprise.) On the other hand if the new owner also really knows what they're doing they can probably expect to do well.

Answer 5

There are several factors that determines if the business goes well.
Business skill, service and merchandise those are the keys. Retaining and increasing client base.
HTH
Maggie