Be Your Own Boss

Starting a business from scratch takes time and planning, as does buying an existing business. Careful preparation is a key to buying a business and becoming your own boss.

"It's a great time to consider buying a business with the large age-span of the baby boomer generation creating a unique situation," said Cress Diglio, International Business Brokers Association chair and president of Corporate Investment International, Orlando, Florida. "Aging boomers are looking to retire, while younger boomers are looking to buy."

Diglio suggests following a step-by-step approach to business ownership.

-- Begin with a self-assessment - Ask why you want to buy a business. What types of work activities do you enjoy and what type of lifestyle do you want to pursue?

-- Establish financial expectations - Determine how much money you need and want to earn. Make sure your expectations are aligned with the types of businesses you are targeting and the return they might produce.

-- Prepare a personal financial statement - Outline your assets and liabilities. Identify what is available for your initial investment and other assets that might be utilized if necessary.

-- Update your resume - Sellers and lenders want to be sure the business will continue to be successful. They're looking for someone with the experience. "You're actually selling yourself to the current owner or owners, the lender and the professionals representing them," Diglio said.

-- Set your acquisition criteria - Define the parameters of your search - what industries, geographic area and transaction size you will consider.

-- Assemble a team of advisors - Let your professional advisors (e.g. attorney, accountant, financial planner) know you are looking for a business. Contact a business broker or intermediary who represents businesses within your targeted market.

Preparation before searching for a business is an important initial step in the buying process. "If you are interested in buying an existing business, you want the business intermediary to be representing you well to the seller," Diglio said. "Demonstrating that you're a qualified, motivated buyer will help seal the deal."

The International Business Brokers Association is the largest international non-profit association operating exclusively for the benefit of people and firms engaged in the various aspects of business brokerage and mergers and acquisitions.