1. Know The State of the Business

The country is in a post-recession state, and it might seem like the perfect time to buy a business. But beyond the overall state of commerce and economy, what industry or service is your potential business attached to? That’s where you begin your research. Know the specifics relating to the products or services your business offers, and the state of each element.

2. Determine How Timeless the Products or Services Are

Sales forecasting is tough for any business sector, but determining if your business is future-proof is essential. Everyone remembers the dot com startup craze; buy a business that isn’t centered on being a fad, fleeting interest, or based too much on your own personal interests.

3. Examine the Financials

If you are buying an existing business, you have the right to request bank statements, P&L statements, contracts, real estate information, tax documents, and whatever else is part of your due diligence. Data will help you ultimately decide when to buy a business.

4. Balance Your Passion and Your Work Ethic

Do you really want to ________________ all day long? (fill in the blank). Ensure there is something to sustain you beyond the promise of dollar signs. The balance between what you’re willing to do and what you’d love to do will create a harmonious relationship around the business that's right for you.  

5. Plan to Go the Distance

Beyond the financial portion of buying a business, the time investment is oftentimes even greater. You’ll know when to buy a business when you can visualize yourself at a business' helm for the long haul. When you're thinking long-term, you're on track to business ownership. 

6. Understand All Components of The Sale 

The points of the deal should make sense to both the buyer and the seller. This extends beyond the fair value you both assess on the transaction; trust your gut if you think the deal sounds too good to be true, or you question the motives of the selling party. This is your opportunity to learn more about the business you might own very soon. Ask how they built the brand, what principles they are founded upon, and what they would do differently if they could start over.

7. Know Your Motives

Many laid-off individuals, or people struggling with career choice, decide to become small business owners as a way to gain more control over their futures. Before entering into business ownership, take the time to analyze your strengths, weaknesses, and lifestyle needs before you become a business owner. When you come from a place of knowing your motives, you'll be better able to make a decision you'll be happy with for the long haul.