North Carolina residents should exercise caution before purchasing an existing business. Taking certain steps before signing a purchase agreement can help them avoid making a costly mistake.
Before taking any other step, individuals should be aware of what type of business interests them and for which they would be well suited. Different types can affect not only the decisions prospective business owners would make, but also how much of an income they would earn. They should consider their interests, lifestyle and skills before deciding on the type of business in which they will make an investment of money and time.
Some people may be suited to own and operate a franchise, using a ready-made brand name, organizational support and business reputation to get started. However, they should be aware of the fees that would be due to the parent company and of any company processes and standards to which they would have to adhere. Independent owners will be able to freely make decisions regarding their business, but would have to create their own support system. The valuation of an independent business will depend on its assets, marketplace reputation and bottom line.
A start-up or consulting company is another option for people who want to be entrepreneurs. These types of businesses are usually created because the current owner is able to fulfill a niche need. These businesses are not as formally structured as other types, but have the potential to become profitable as they grow.
Individuals who are interested in buying businesses may consult with an attorney who practices business law to ensure that their interests and rights are protected. The attorney can often assist with the preparation of the purchase agreement and other documents.