Finances

The financial status of the business you are about to purchase is eminently important. Be sure to review the revenue and costs closely. Look into trends for input costs of the products you will be producing to see if there is a period of time you may want to limit production. Also examine business operating costs such as the cost of utilities, rent, insurance, and taxes. If there is a mortgage owed by the current owner(s) you must include that cost into your business plan too. When looking deeper into the company’s finances and profits, keep in mind you may need to sign a nondisclosure agreement, promising you will not share their information with any other parties.