Buying a business?

is there a way to find out if the business you buy is making profit or not making profit



even for small businesses like convienent stores or flower shops?

Buying a business?
Please don't take this the wrong way - but if you are not sure how to check the profitability of a business that you are thinking of buying, you REALLY do not need to be buying it.



It is a little bit like a suregon needing to ask if someone can tell him which lumpy bit the kidney is before he attempts to transplant it.



Mark
Reply:Have the books audited.
Reply:The Rabbi is correct, before buying a business and signing the contract you should have full access to all the business's financial records.......................



Cheers, ToNy!

"Success.Trail"
Reply:Like an earlier answerer, if you have to ask the question I'm not certain you should proceed at all. Still, here's some advice:



* You first should have a heart-to-heart talk with your accountant -- I assume you have a good business accountant -- about business profits and losses. A class at the local SBDC (Small Business Development Center) or community college in business structure/management would be a good idea, too.



* Then, as part of the due diligence process, have your accountant audit the business' financial records.



* Get help from a qualified business broker and CVA (certified valuation analyst), too. Your accountant should be able to make referrals.



I* f you don't have an accountant, or the one you have isn't able to offer much help, skip the idea of buying a business for now and search for a qualified accountant.



* You'll need a lawyer in this process, too. You do have an attorney experienced in business transactions, don't you?

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