What To Look for When Buying a Start-Up Company

Startups are hard work. You have to build a business from the ground up, put in most of your time, a lot of money and effort – all that, without an assurance that it will at least give a return on your investment. You can help this situation by buying an existing successful business. You get all the perks but with lesser risk.

Business Lawyers in New York Have These Tips for Buying Startups

As a part of buying a successful business, you get a brand that’s already recognized, a loyal customer base, a system that works, trained employees and a steady cash flow. The question is, “How are you able to find a successful business that will get you all of that?” Unlike selling property or furniture, you’re not going to find an ad about it in the newspaper. Selling a business is often kept confidential, so the best thing to do is call a broker and work with business lawyers in New York.  Here’s what to look for when you are seeking a business to buy.

business lawyers in New York

How It Fits With You

More than any consideration on this list, how you feel about the business is by far the most important. If you plan on managing this business yourself or taking an active part in its growth, you should be confident in your skills running it. You should be able to match your skills or experience with what the business requires to continue to grow. If you’re not motivated by that business, chances are you won’t work as hard for it.

Track Record

Do your homework. It’s easy to claim that a business is doing well, but the papers don’t add up. Get your accountant to look at it. Seek the professional advice of your business broker, and figure out if the success that this business says it’s having is indeed true. You can talk to the sellers, inquire they would like to sell. Did they encounter problems? Do they have tips they can give you about the business or the industry that the business is in? This will help you establish how the business got to where it is and how you can run it better.


Depending on the type of business, it has to be accessible to its customers. This will give you more room to expand the business, introduce changes and capture more market. Think about how the particular location affects expenses like labor, taxes, raw materials, and your personal travel cost. If the business is far from your current home and you want to run it, you also need to ask yourself if you’re willing to move for it.



This entry was posted in Blog, Business Law and tagged . Bookmark the permalink. Follow any comments here with the RSS feed for this post. Both comments and trackbacks are currently closed.