6 Mistakes To Avoid When Purchasing A Business In Miami

If you are considering purchasing a business in the great city of Miami, this is without a doubt an exciting time for you and a key moment in your career. However, buying a business is a complex process, there are several aspects that need to be taken care of and a great number of things you need to look out for throughout the process. It is extremely important that you do everything you can to make sure that you are making the best possible investment. In this article, you will find some of the most common mistakes people make when purchasing a business in Miami.

1 – Failing to Perform Due Diligence Properly

When you find a business that you are interested in purchasing, it is crucial to conduct extensive and thorough due diligence before making any final decisions.

Never forget: due diligence is key!

No matter how long and tedious the process might seem in the beginning, you will thank yourself in the end because things are often not what they seem to be. From showing you fake financial statements to lying in regards to the costs of running the business, deceitful sellers are everywhere and they have several devices to convince you to make a bad purchase. By taking charge of the process and performing proper due diligence, you eliminate this risk.

2 – Purchasing a Business in Your Own Name

When the time comes to sign for the purchase agreement, you must make sure you do not do it in your own name. The reason behind this is that when you sign a business purchase agreement in your own name, you put your personal assets at risk. A great way to avoid this is to set up a Limited Liability Company or any other business entity before it is time to put your signature at the bottom of the page.

3 – Going Over Budget

This mistake might seem obvious, yet, it happens all the time. Purchasing a business should be like buying a house; you must never get in over your head because the costs are not going to go away, rather, they will go up before you are likely to see any profit. You can avoid this mistake by sticking strictly to your budget and making sure you do not end up buying the idea of “potential profit” over actual profit possibilities.

4 – Changing the Business Drastically

Another common mistake new entrepreneurs make when they purchase their first company is making drastic internal changes to the business once they take charge of it, like firing support staff or creating new departments. Although some of these changes are inevitable, necessary, and sometimes recommended, a change in the ownership of a business is already a massive amount of stress for a company. Therefore, take your time to analyze and evaluate your new business to determine what is working, what needs improvement, and what needs to be changed or created. Avoid rushing into decisions that you may regret later on.

5 – Failing to Promote the Business

When purchasing a business, another point that might seem obvious is promotion; nonetheless, it is important to mention it. Sometimes it is very easy for new business owners to think that because a business is already established and has a record of success it does not require any additional promotion. For a great number of reasons, this is simply not true. When you are purchasing a business, you need to make sure you are prepared to take on all necessary promotion expenses and marketing strategies to keep your new business running successfully.

6 – Not Hiring an Experienced Business Lawyer

Purchasing a business is a massive undertaking and the process is anything but simple. You not only have to put together the funds to pay for your new company but also you must run the company in compliance with all the requirements under Florida Law. At Jurado & Farshchian. P.L., we know what it takes to run a business and our team of skilled business lawyers is ready to help yours succeed. From negotiating your purchase and satisfying all legal requirements to advising you in regards to the operations of your new company, we will be there to assist you with everything you need.

To learn more about our services, contact us today at (305) 921-0440 or send us an email to [email protected]. Let us add you to our list of satisfied clients.

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