Friday 5: mistakes in buying a business

Looking at buying a business, instead of starting one from scratch? Check out this week’s Friday 5, a list of the top 5 mistakes made when buying a business (expired link), via Michelle Knudson. She notes the importance of evaluating the potential of the business:

We often get so sidetracked by the idea of being a business owner that we often forget what is the most important when it comes time to purchase.

Remember, as great as a business idea sounds, you have to make sure you’re actually getting something for your money. If you’re buying a services business, like consulting or coaching, make sure that the business will be worth something without the current owner. If you can’t make up for their expertise and contacts, you’re going to be in a tough spot. Don’t be so in love with the idea of owning a business that you forget to make sure it’s the right one for you.