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The 4 Fundamental Questions When Buying a Business in Ontario


Ontario is a city with many business opportunities. Similarly there are many existing businesses and franchises on sale in Ontario. As a first time buyer acquiring an existing business can be an overwhelming ordeal. Therefore before you start your quest for buying a business or franchise it is important that you be equipped with the necessary and relevant information to make a successful and lucrative purchase. Buying an existing business is better option than starting a business from scratch, however just because the business has an established consumer base, running equipment and pre-negotiated lease doesn’t mean you are buying a success story. You must do a little legwork as a prospective buyer to ensure that you make wise investments. Here are a few questions you should ask yourself before buying a business:

1.      What Kind of Business do you want?

When looking for an existing business for sale in Ontario, you should know what kind of business you want to buy. It is important to know if it is a wholesale, retail, automotive, assembly or service business. It does not end there as you should also know the range of services or operations that are carried out by the business. This is important information as by knowing this you will be able to know the likely sources of income and the consequent expenses of running the business.

2.      Where do you Find Businesses for Sale?

When looking for businesses for sale in Ontario, Newspaper ads and the yellow pages can be a very good and reliable source of business listings on sale. However for convenience and speed the internet would be the best place to look. You will find commercial property listings for businesses for sale at any location in Ontario.

3.      Do you have The Skills to Operate the Business?

As a first time business buyer or even a seasoned business operator looking for businesses for sale in Ontario, you would be more comfortable buying a business that you have had prior skills operating. If you are venturing in a new direction it is important that you learn the skills of the trade. The operation of a business does not just entail managing daily operation but also knowing what the industry’s expectations. Get acquainted with industrial norms and standards before buying the business.

4.      What is the business history and finances?

Before you even consider buying an existing business it is of fundamental importance that you do a thorough research about the business history and financial status. Get as much information about income statements, balance sheets, employee contracts, lease agreement, consumers, market competition, assets and outstanding liabilities. Most attorneys will refer to this process as due diligence. It is what gives you a peek into the feasibility of the investment. Do not be coy about asking for information, as a prospective buyer you are entitled to know what you are getting into. Any misinformation or reluctance to provide information can be an indicator for you to prospect elsewhere.

 Once you have satisfactory answers for all these questions you can comfortably proceed to negotiate a good deal for the purchase.

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Nav Sidhu
Homelife Maple Leaf Reality Ltd. Brokerage
Phone (905) 456-9090
Address 80 Eastern Ave Brampton
Brampton, Ontario
Canada L6W 4K6