1.  Consider what you have for a down payment and what kind of net income you expect.  You should expect three things from the business:  (a) return on investment, (b) make a living, and (c) if there's any financing involved, the business should be able to pay the note.

2.  Educate yourself on the type of business you're going to buy.

3.  Imagine yourself doing that kind of work on a daily basis and taking the business to the next level.

4.  Contact a reliable broker to represent you ... West Coast Business Brokers!

5.  Fill out an NDA (non-disclosure agreement) and a financial statement (do not disclose any personal bank account information).  Click here to access West Coast Business Brokers forms.

6.  Arrange to speak to the owner by phone to get answers to your initial questions regarding the business.

7.  Have the broker arrange a meeting at the business location with the owner.  

8.  Make an offer.  This will protect you while you are completing your due diligence, including reviewing the books, getting a lease, qualifying for a franchise agreement (if necessary), obtaining special licenses, and arranging for financing.  If you do not make an offer, while you're considering this business someone else will make an offer and you will lose out.  For further details on making an offer, call us at 503-475-0306.  In Oregon and Washington, an offer is only good when accompanied by an earnest money check which held in escrow until closing.  Earnest money lets the seller know you are serious.  The seller can accept your offer, reject your offer, or counter offer.  Be mentally prepared for any of the three.

9.  Once the offer is accepted, do the following:

• Arrange your financing.  Remember, an SBA loan takes 8-10 weeks. 
• Check out financial records and tax returns. This should be done in a timely manner within the first two weeks after your offer is accepted.
•  If it's an asset sale, start checking out the assets and if inventory is included get ready to take an inventory count. 
• Apply for any necessary licenses.
• The seller will meet with the landlord to get you a new lease and advising the landlord that you will be taking over his/her lease.
• The seller will obtain franchise agreement, if necessary.

10.  Set up a closing date with an escrow agent.  We have an excellent escrow attorney on staff.  The cost is $400 paid to the attorney at closing.

At this point, expect to get "cold feet"!  Remember, you'll be getting training from the owner and you are not the first to buy a business.  When I bought my first business, I didn't sleep for a month.  It won't be that bad for you.  If you've followed all these steps, you are an entrepreneur!

11.  Closing day.  You will receive a buy-sell agreement, the transfer of the name of the company and the business phone number  to you, a non-compete from the seller, the web site (if applicable).  The attorney will make sure there are no pending law suits, judgments or liens, and that the payroll is current.  You'll also receive an asset sheet listing all assets you are getting.

12.  The seller will expect to be compensated for phone and utility deposits, lease deposits if applicable, receivables that have not closed yet, and any prorated advertising already paid for.

13.  Training begins. You'll meet the staff and take over.