You have just purchased a beverage vending machine from the manufacturer that cost you two thousand dollars. The following day a salesman arrives in your home claiming that he can get a location for your machine that will earn you two thousand dollars per month. But he wants you to give him five thousand dollars. He’s willing to give you a written guarantee that if at the end of six months you are not happy with the machinery earnings your money will be reimbursed. No questions asked. It is a scam, although that sounds like a bargain to an inexperienced person. Nobody including the salesman can predict exactly what that vending machine will earn once it is on location. If he were sure that it would earn he would quit his job and go into the vending business himself. His guarantee is worthless because all companies that offer to find locations for vending machines have no assets.
They thrive on broken promises. At the end of six months when your machine is currently earning next to nothing the salesman and his company will be gone. A rule to follow when purchasing a small business never believes a vendor when they talk about earnings because that is impossible to predict. If the seller believed that the business had great earnings potential, the business wouldn’t be sold at present. But if you would like to take a gamble hoping that the business you’re buying has potential that is fine. Never pay the seller for earnings potential because it’s an imaginary concept and it’s worthless. Prior to buying a business, have their books assessed by a qualified accountant with experience in the sort of business you are buying. If you’re searching for more information on businesses for sale in the uk, just go to the mentioned above site.
You must be sure of what the earnings are because that’s what you are paying for. Nothing is more important. Be careful of being told that there’s untaxed income from the business that the seller is currently hiding from the government. If you count on this to pay off your notes and it isn’t there, you’ll go bankrupt. A person selling a business has a tremendous advantage over the purchaser. The seller knows the business and believes he is making a wise move. The buyer knows only what he sees and is currently overlooking the vulnerabilities of what’s being bought. Even if the business is a solid one, and the price you’re paying is too high, you have a problem. If you can’t meet the notes, the business might need to be returned with you taking a large loss. Some owners are delighted to see that happen because now they can look for another sucker.