Mistake #5 - Falling In Love With A Business

Something changed in your life and you decided to own a business. You could probably start from scratch, but considering all pros and cons decided to acquire an established business. Well, it's a very wise decision as long as you do it right. Unfortunately, new business buyers make many mistakes that make business acquisition much harder, some times causing substantial financial and emotional hardship, other times loss of otherwise promising business opportunity altogether.

Let's review 10 major mistakes that business buyers make that prevent them from successfully buying a business.

• Mistake #1 - Procrastination 
• Mistake #2 - Making Assumptions 
• Mistake #3 - Not Asking Right Questions 
• Mistake #4 - Being Overly Aggressive 
• Mistake #5 - Falling In Love With A Business
• Mistake #6 - Not Being Able To Compare Businesses
• Mistake #7 - Not Using Intermediary For Negotiation
• Mistake #8 - Forming Partnership Without Proper Documentation
• Mistake #9 - Allowing Counselors Making Buying Decision
• Mistake #10 - Relying Too Much On Financial Documentation

Mistake #5 - Falling In Love With A Business

My friend was looking for a business for quite some time. He called me about a week ago sounding very excited.

- I've finally found a business that I need. It has everything that I wanted. It looks beautiful, in a good location, makes good money and can be expanded to double the sales. This is exactly what I was looking for. I'm going to buy it.

- Very well, I said. I am glad that you finally found what you want. Let me ask you a few questions, though. What do you really know about this business? Have you seen the financials? What are the terms of the lease? Have you researched the competition and industry?

- N-no.., not really...

I don't want to be a party pooper, however the point here is that falling in love with a business may seriously skew one's ability to realistically evaluate it. It is very important to stay calm and focused, and remain business-minded. Regardless how much you like a business, try to keep emotions out of it and follow your business-buying criteria. If a business doesn't meet your criteria - walk away without any regrets. There are many businesses on the market and eventually you'll be able to find the right one.

Please, don't misinterprete my message. I am not advocating for procrastination. If you found the right business, don't waste your time - move forward and buy it. However in doing so, you have to rely solely on results of your business evaluation, not love at first sight.