Bill Bartmann Lecture Series – Part 6 – Bill Bartmann’s Advice on Buying a Business

April 14, 2009 - PRLog -- Tulsa, OK – Bill Bartmann, Business Coach, continues his lecture series by teaching students how to do their due-diligence as they think their way through everything they need to understand before making the commitment to buy a business.

The first due diligence question to ask is ‘Why is the business for sale?’  Bill Bartmann said, “You must get an answer that you feel is credible; you have the right to be skeptical.  Do not think you have to accept the first answer you hear.”

The next due diligence question to ask is ‘What is your general perception of the industry?’  Bill Bartmann said, “Your intent will be to increase the volume of the business.  Has anything happened to have an adverse affect on the demand for your product or service?  Think beyond the history and think of the future of the company.  Can this business grow?”

Another good question is ‘Is this company one of the better ones in the industry?’  Bill Bartmann explained, “When you purchase an existing business, you inherit the business, the customers and their reputation; you become what is seen through the eyes of the consumer.”

Bill Bartmann also advised the students to determine the long-term outlook for the industry they are going into, whether the business is soon to peak and then fall; where the industry is in the market trend and if they are on the rise or if the market demand is declining.  “Consider the competition; what are your competitors doing?  Is the level of competition in this field or industry increasing or decreasing in your target market area?”

Bill Bartmann covered more due-diligence work to do before making the final decision to purchase the business.  He suggested interviewing some of the customers.  “Ask for their customer list so you can randomly choose customers rather than allowing them to give you ones that are likely to say only positive things,” said Bartmann.  “You might be required to sign a non-solicitation agreement promising that you will not approach their customers for your business if you choose not to buy their business.”

Bill Bartmann advised the students to check to see if they are a member of the Better Business Bureau and to check with trade associations to see if they have heard anything about the company they are considering purchasing.  Bartmann also said to analyze financial reports and ask about inventory practices.  “Don’t be afraid to hire a professional business consultant, accountant or attorney.  The fee for their services is little compared to your savings if they should find problems that you would otherwise miss.”

As the lecture concluded, Bill Bartmann said, “Be sure you get the websites, phone numbers, logos and trademarks that exist within the company.  Otherwise, the former owner keeps the phone number and all your customers continue to call them instead of you!  Remember, your due-diligence is your advance preventative medicine; be thorough when investigating a business to save yourself from making a very costly mistake.”

Bill Bartmann has over 40 years experience in business; he has bought, sold and built businesses from the ground, up.  Read Bill Bartmann’s blog to learn more about doing your due-diligence when buying an existing business, http://billbartmannbuyingabusiness.blogspot.com/

Contact:

Bill Bartmann
8556-C E 101st Street
Tulsa, OK  74133
918-388-3328
bill@billbartmann.com


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