re: Considerations before purchasing a small business?

My biggest thing is......why is he selling?!?!

I wouldn't sell my convenience stores EVER

1.I would lease them and collect rent

2.I would put a manager to run them if it was more profitable than renting it out

Depending on the type of business you are buying that's my first question. If it's any type of service business especially.

As for the books, you aren't going to be too happy, I really don't know any small business owner who reports every dollar truthfully. Nowadays with the high volume of Credit cards, you will get close to the real "sales" number bc sales are probably 80%+ with CC but I wouldn't put too much stock into the cash number......in fact its probably significantly higher and unreported

Just make sure you know what you are getting into if you are leasing, for example if its a triple net lease and you are responsible for property taxes,maintenance, etc

If you are financing, see if the owner would do owner financing bc bank financing on small businesses can be a pain in the keester

One final recommendation, if you are buying a franchise, please buy a big name one, what I mean is I've seen so many friends lose their hard earned life savings going into business opening :firehouse subs,roly polys,16 handles, etc ..... those companies are great but they dont invest enough in advertising so when people are given the choice of say subway or firehouse subs they choose the former on a much higer frequency. I hated seeing my friends blow so much time saving up at their previous jobs just to lose it in those ventures,so please be careful