Buying a Business
Owning your own business is a common career goal for many Austin entrepreneurs. The advantages are numerous and include unlimited profit potential, the ability to set your own hours, pride and self-esteem that comes with being your own boss and the many tax advantages offered to small business owners. After personally working for years with numerous Austin small business owners, I can say that successful small business owners are some of the most satisfied people in the workplace.
Buying a business rather than starting a business of your own has many advantages. There are risks associated with both approaches, but potential business owners need to keep in mind the statistics that show more than three-quarters of new business start-ups fail within the first five years. Buying an existing business can reduce many of these risks. Here is a short list of some advantages of owning an established business.
Financing – Often easier to secure due to an established track record.
Brand – Marketing cost for an existing brand will normally be substantially lower
Customer Base – One of the main assets in an established business
Business model – Having an existing business model that you can focus on can save you a lot of time and money.
Facility costs and capital investment – These can be a major expense for a start-up.
When Should I Hire a Business Attorney?
You will obviously need a business and contracts attorney when you draw up a contract for sale, but you should acquire the legal services of an Austin business lawyer (text link to the home page) before this final step. In the process of your purchase, you should have access to a complete financial account of the business operations going back at a minimum of three years. Also you must be certain of any outstanding legal action that has taken place against the company, or any pending legal actions. All lease and rental agreements must be reviewed. Existing contracts with vendors and subcontractors will also need examination. This process, the legal due diligence and many other critical steps must be taken to avoid legal pitfalls that can occur in a business sale.
An Austin Business Lawyer with contract experience is essential to this process. The time and money you spend on these legal services will be rewarded many times over as your business continues to grow and profitability increases.
The Austin Law Office of Darin Siefkes has years of experience negotiating and drafting contracts concerning buying and selling a business. We provide effective small business legal services for owners and those involved in the process of acquiring their own company. For a business to prosper, a proper legal foundation is something that just can’t be ignored or postponed. Most of our business legal services are done for a flat fee so there are no surprise costs. Please fill out the contact form to arrange for a no obligation assessment of your particular situation.