Do most people who want to buy a business already know what type of business that they want to acquire?
Actually, no, they don’t. Most buyer prospects tell me that they want a “good” business making plenty of money, something not too complicated. Many list a few broad categories such as “construction related” or “manufacturing.” Several take the negative approach: “no retail” or “no restaurants.” A very few are specific, “I want a dry cleaning plant.” For most buyers, the defining factors are geography and size – they want to buy a business within 1/2 hour from where they live and they have a certain amount of cash available for down payment that defines the price they can afford. Of those that are attracted to the business broker by a specific listing, 70% of those that actually buy, buy a different business than the one that they were initially attracted by.
